1. Opening Hook
In a world where Chinese dumping is faster than your Wi-Fi speed, DCW somehow managed to post an 8.5% sequential EBITDA growth. The chemical sector’s been sweating like a PVC plant in Gujarat summer, yet these guys expanded capacity, cut debt, and still smiled for the camera.
Their CPVC expansion doubled capacity, prices crashed 15%, and yet profits bubbled up — pure desi jugaad chemistry at play. The next leg? A fully charged, debt-light DCW betting on specialty chemistry to outlast every Chinese exporter with an Excel sheet and cheap freight. Stick around — this story has more twists than a PVC pipe.
2. At a Glance
- Revenue up 10.3% YoY: Even with global price meltdowns, the topline didn’t dissolve.
- EBITDA up 51% YoY: Chemistry’s new formula — more scale, less despair.
- PAT at ₹13.8 Cr vs. loss ₹1.2 Cr: Red turned black — and management’s sleep turned sound.
- EBITDA Margin at 10.8%: Expanded by 360 bps — proof you can polish even caustic soda.
- Debt down ₹61 Cr: CFO finally found the delete key on liabilities.
- Net Debt: ₹155 Cr; Net D/E: 0.34x: Almost debt-free, unless you count emotional baggage from Chinese pricing.
- Renewable Power: 25% of total: Even the electrons are now “green” and EBITDA-positive.
3. Management’s Key Commentary
“Global chemical sector continues to face weak pricing and Chinese dumping.”
(Translation: Beijing’s export policy doubles as our headache pill.)
“Our CPVC capacity doubled to 40,000 tonnes and hit full utilization instantly.”
(Because who doesn’t love twice the pressure with half the
price?) 😏
“CPVC prices dropped 15% QoQ but specialty EBITDA still grew.”
(That’s like losing your wallet but finding ₹2,000 in your other jeans.)
“EBITDA up 51% YoY despite weak realizations.”
(Translation: We fought gravity — and won, sort of.)
“Gross debt down ₹70 crore; net debt ₹155 crore.”
(Finally, a balance sheet light enough to float in acid.)
“Expect net debt-to-EBITDA below 0.5x by FY26-end.”
(Basically, our lenders are officially unemployed.)
“Renewable power saved ₹3 crore this quarter.”
(Mother Nature joined our cost-cutting team.)
“We’re building for the next decade, not the next quarter.”
(Bold talk — but then again, they make caustic soda, not excuses.)
4. Numbers Decoded
| Metric | Q2FY26 | Q2FY25 | YoY Growth | Comment |
|---|---|---|---|---|
| Revenue | ₹539 Cr | ₹489 Cr | +10.3% | CPVC saves the day |
| EBITDA | ₹62.6 Cr | ₹41.5 Cr | +51% | Efficiency on steroids |
| EBITDA Margin | 10.8% | 7.2% | +360 bps | Margin upgrade |
| PAT | ₹13.8 Cr | (₹1.2 Cr) | NA | Profit revival |
| Net Debt | ₹155 Cr | ₹425 Cr (Mar’25) | -64% | Balance sheet detox |
| Gross Debt/Equity | 0.34x | 0.45x | Improved | No debt drama |
| CPVC Capacity | 40 KT (up from 20 KT) | — | — | Running at 100% |
| CPVC Price | ₹105/kg | ₹123/kg | -15% | Price crash, volume win |
(Note: CFO calls it “muted pricing”; investors call it
