DCW Limited Q2FY26 Concall Decoded: When China Dumps, DCW Pumps 💥

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