Event Participants
Executives
4 Aryan Bhotra (CFO), Ddev Sarana (Whole Time Director & CEO), Narendra Sarana (Chairman & MD), Rajesh Kothari (Whole Time Director)
Analysts
11 Alok Vakil (Individual Investor), Apoorva Bandi (Whitestone Financial Advisors), Arnav Sakhuja (Ambit Capital), Bhagwat Nayak (Prosperity Wealth Management), Bhargav Buddhadev (Ambit Asset Management), C Yogesh (Individual Investor), Drishti Shah (Individual Investor), Hardik Jain (Whitestone Financial Advisors), Jainam Ghelani (Svan Investment), Saket Kapoor (Kapoor & Co.), Saloni Ajmera (Go India Advisors)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Total Revenue | ~₹1,010 crores | +29% YoY, driven by robust traction in cables/wire segment and exports; price-led growth as volumes were flattish |
| Export Revenue | ₹300+ crores | ~30% of revenue; MENA-region focused; benefited from war-risk premium and freight uncertainty pricing |
| EBITDA | ~₹101 crores | +27% YoY; first time crossed ₹100 crores benchmark; margin at 10% |
| EBITDA per kg | ~₹19 (incl. ₹2.5-3 volatility premium) | Base run-rate of ₹16-17/kg; improved sequentially by ~₹300/ton each quarter aided by product/geographic mix |
| PAT | ₹64 crores | +22% YoY |
| Q1 Volume | 52,163 tons | +1% YoY only; impacted by demand deferral due to high prices and supply chain uncertainty |
| Installed Capacity | 3,16,400 MTPA | Includes new 48,000 MT greenfield XLP facility at Bhiwadi commissioned April 2026 |
| Capacity Utilization | 66% average | Moderated due to new Bhiwadi capacity with limited operating hours; base plants at ~70%+ |
| XLP Capacity | 2,14,500 MTPA | Market share >33% in XLP compounds; new facility expected to add ~₹500 crores revenue at full ramp |
| SiO+ Market Share | ~50% | Leadership position maintained; also leading HFOR compound player in India |
Geographic & Segment Commentary
Domestic Market: Q1 volume growth was muted (~1%) as customers deferred purchases amid elevated polymer prices and geopolitical uncertainty. Management expects demand normalization as prices stabilize, with domestic volume growth of ~15% targeted for full year. New Bhiwadi facility positions the company to capture northern India demand for medium-voltage XLP compounds, targeting increased share in the medium/high-voltage segment.
Exports (MENA, Europe, US): Export revenue of ₹300+ crores in Q1 was driven primarily by higher realizations rather than volume growth. War-risk premium and freight uncertainty enabled better pricing in Middle East markets. Export volumes declined marginally as some shipments shifted from Q4 FY26 to Q1 FY27 (~1,000 tons). Management sees growing indirect exports to UK via Indian cable manufacturers and direct benefit from India-EU FTA on existing European customers. Export CAGR of 16% achieved between FY22-FY26.
BESS (Battery Energy Storage Systems): New strategic vertical targeting India's renewable energy storage opportunity. Project site shifted from Ahmedabad (West) to West Bengal (East) due to lack of existing players, better warehouse availability, and an expected industrial policy announcement by August 15. First phase is 1 GWh capacity with targeted revenue of ~₹900 crores at full run-rate. Business will initially operate on supply model with 6-8% EBITDA margin, transitioning to EPC and system integration over time.
Company-Specific & Strategic Commentary
Bhiwadi Greenfield Facility: Commissioned April 2026 with 48,000 MT XLP capacity in Rajasthan. Currently running at 20-25% utilization, expected to reach ~50% average utilization for FY27. No new customer approvals required - existing approvals across facilities apply. Will serve northern customers (KEI's Sanand plant, etc.) and free up western capacity for exports.
BESS Strategic Entry: First phase investment of ₹150-200 crores from internal accruals, plus ₹100-150 crores working capital debt. Commercial operations expected by mid-FY29. EBITDA margin trajectory: 6-8% (supply model), then +2-5% with EPC, and 11-15% long-term as system integrator with backward integration. Management considering potential JVs for backward integration.
Capacity Expansion Roadmap: FY27 capex of ₹150-175 crores allocated for HFFR expansion to 20,000 tons, new site near Wapi (consolidating multiple products), and BESS investment. End-FY27 total capacity expected at 3,34,400 MTPA. New products (halogen-free fire-retardant XLP insulation approved by German lab) already commercially supplied.
Market Share Gains: Supply chain disruptions and raw material volatility favor organized players like DDev Plastiks. Local customers are increasingly relying on domestic suppliers versus overseas counterparts facing logistics issues. New capacity positions company to capture share in medium-voltage XLP category where current share is lower.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| FY27 Revenue Growth | ~13% YoY (conservative) | Based on FY26 average realizations (₹145/kg); does not factor recent price increases. Management expects to surpass guidance given Q1 beat |
| FY27 Volume | 231,000 tons | Implies 15% YoY volume growth; Q1 contributed only 52,163 tons (22.5% of target) with ramp expected in H2 |
| Bhiwadi Facility | ~50% average utilization in FY27; ₹200-250 crores revenue contribution | Ramping from 20-25% current run-rate; incremental ~₹500 crores at full utilization |
| EBITDA Margin | 10-12% (₹16-17/kg base) | Volatility premium of ₹2.5-3/kg from current environment may not sustain; mix improvement continues adding ~₹200/ton per quarter |
| BESS Commercial Ops | Mid-FY29 for 1 GWh first phase | Shifted from West to East; Bengal industrial policy expected to provide incentives |
| FY30 Revenue Ambition | ₹5,000 crores | Anchored on power transmission upgrades, renewable capacity, data centers, and manufacturing-led growth |
| Cash Conversion Cycle | 55-60 days (normalized) | Q1 elevated due to raw material price spike and uncertainty; normalizing from July |
Risks & Constraints
| Risk | Context |
|---|---|
| Geopolitical Disruption (Middle East) | Ongoing Hormuz situation and Iran tensions continue to cause freight and raw material volatility. Management notes order book visibility is limited to 10-20 days; July and August look okay but beyond that is uncertain. Iran considering no discussions until August 29 with presidency change could prolong uncertainty |
| Raw Material Price Volatility | Polymer/resin prices spiked in March-April, changing weekly or 2-3 times within a week. While prices have stabilized, management expects reversal to pre-war levels only gradually over 3-6 months. Elevated crude prices ($85-90+) could postpone domestic demand as project costs rise |
| BESS Business Execution | New vertical with no track record; management acknowledges credibility must be built through initial supply model. Competition from established EPC players; bidding landscape currently unfavorable as tenders are being retendered due to price escalations and EMD forfeiture |
| Demand Deferral | Q1 domestic volumes grew only 1% as customers delayed purchases at elevated prices. If prices remain high, volume growth could be back-ended to H2 FY27 |
| Regulatory | No anti-dumping duty investigation or BIS standards currently proposed for compounds; however, BIS implementation on raw materials (PVC resin, polymers) is in place. India-EU FTA expected to provide preferential access to >99% of Indian exports, benefiting competitiveness |
Q&A Highlights
Revenue Shift and Export Mix
- Question: How much of Q1 revenue was shifted from Q4 FY26 due to export shipment delays caused by war? (Apoorva Bandi, Whitestone Financial Advisors)
- Answer: ~1,000 tons of export volume shifted from last week of March due to vessel availability issues and peak war disruption. Q1 export revenue of ₹300+ crores partially includes these carried-over quantities. (Aryan Bhotra, CFO)
Bhiwadi Facility Ramp-Up
- Question: What will be the revenue contribution from the new Bhiwadi facility in FY27? (Apoorva Bandi, Whitestone Financial Advisors)
- Answer: Bhiwadi is currently running at 20-25% utilization. Management expects average utilization of 50%+ for FY27, implying revenue of ₹200-250 crores from this facility. Full capacity revenue potential is ~₹500 crores. (Aryan Bhotra, CFO)
EBITDA per Ton Sustainability
- Question: Is the higher EBITDA per ton sustainable or will it normalize as logistics ease? (Hardik Jain, Whitestone Financial Advisors)
- Answer: The ₹19.6/kg EBITDA achieved in Q1 includes a volatility premium from MENA export pricing. Management is conservative and targets ₹16-17/kg (10-12% margin). Premium may sustain for a few months but not every quarter. EBITDA per ton approach is more meaningful than percentage margin given pass-through pricing. (Aryan Bhotra, CFO)
BESS Business Model and Margins
- Question: Will BESS operate as OEM/EPC or BOO model? What margins and funding are expected? (Bhagwat Nayak, Prosperity Wealth Management)
- Answer: Starting with supply model (6-8% EBITDA margin), then EPC (+2-5%), then potentially system integrator (11-15% long-term). Not considering BOO/BOOT initially. First phase investment is ₹150-200 crores (CapEx plus working capital margin) from internal accruals, with ₹100-150 crores additional working capital debt. 1 GWh project targeted for mid-FY29. (Aryan Bhotra, CFO)
FY27 Conservative Guidance
- Question: Revenue guidance of 13% growth appears conservative versus 25% capacity addition - is that intentional? (Drishti Shah, Individual Investor)
- Answer: Yes, deliberately conservative. Guidance uses FY26 average realizations (₹145/kg) without factoring current higher prices. Volume guidance of 15% growth remains intact despite Q1 weakness (1% growth) because: (1) new site ramps in H2, (2) price uncertainty subsides, (3) local demand returns. Bhiwadi contribution is modeled at 50% utilization only. (Aryan Bhotra, CFO; Rajesh Kothari, Whole Time Director)
BESS Relocation to West Bengal
- Question: What is the rationale for shifting BESS project from Ahmedabad to Bengal? (Saket Kapoor, Kapoor & Co.)
- Answer: Opportunity exists in East with no existing players; better warehouse availability identified post-elections in Bengal. Additionally, most tendered BESS projects are being retendered due to price escalations and EMD forfeitures, so timeline delay isn't a market loss. Bengal's new industrial policy expected by August 15 may provide land and incentive benefits. (Aryan Bhotra, CFO)
Market Share Gains During Supply Disruption
- Question: Given raw material volatility, is it fair to assume significant market share gains in FY27? (Bhargav Buddhadev, Ambit Asset Management)
- Answer: Yes - the company is positioned to gain share in medium-voltage XLP where current share is lower. Bhiwadi capacity specifically serves northern customers' expanding needs. Supply chain disruption also makes domestic sourcing more attractive versus imports. If Hormuz opens and crude stays elevated, India's polymer capacity advantage supports competitive exports. (Rajesh Kothari, Whole Time Director; Aryan Bhotra, CFO)
EU/UK FTA Benefit
- Question: How will the UK FTA benefit DDev Plastiks? (Alok Vakil, Individual Investor)
- Answer: No direct UK export exposure currently. However, Indian cable companies are aggressively targeting UK market; their success will create indirect export demand for compounds. India-EU FTA provides direct benefit since the company already exports good quantities to European customers, and reduced duties increase competitiveness. (Rajesh Kothari, Whole Time Director)
Key Takeaway
DDev Plastiks delivered a strong Q1 FY27 with revenue of ~₹1,010 crores (+29% YoY), EBITDA crossing ₹100 crores for the first time at 10% margin, and PAT of ₹64 crores (+22%). Growth was price-led rather than volume-led, with volumes growing only 1% amid elevated polymer prices and Middle East geopolitical disruption; export revenue of ₹300+ crores benefited from war-risk premium pricing. The company commissioned its 48,000 MT Bhiwadi XLP facility in April, expanding total capacity to 3,16,400 MTPA while maintaining >33% XLP and ~50% SiO+ market share. Management reaffirmed FY27 volume guidance of 231,000 tons (+15%) and expects Bhiwadi to reach 50% utilization, contributing ₹200-250 crores revenue. Strategic entry into BESS (1 GWh, ₹150-200 crores capex, mid-FY29 start) was relocated from Ahmedabad to West Bengal, targeting ₹900 crores revenue at full run-rate. Management maintained conservative FY27 revenue guidance of 13% and ₹5,000 crores FY30 ambition, anchored on India's electrification cycle, transmission upgrades, and data center-led cable demand. Key watch items remain geopolitical resolution (Hormuz), polymer price normalization trajectory, and BESS execution credibility in a new vertical facing retendering market conditions.