D & H India Ltd Q3 FY26 — ₹62 Cr Quarterly Sales, 44% QoQ PAT Jump, Yet a ₹24.6 Cr Rights Issue Plot Twist

1. At a Glance – The TL;DR That Slaps You Awake

D & H India Ltd (DHIL), a 1985-born welding consumables maker, is trading at ₹147 with a market cap of ~₹121 Cr. In the latest Q3 FY26, the company clocked ₹61.95 Cr in quarterly revenue (+12.2% YoY) and ₹2.43 Cr PAT (+43.8% YoY). On paper, that’s spicy growth. On the balance sheet, debt sits at ~₹67.2 Cr with Debt/Equity at ~1.35—not exactly gym-fit, but not bedridden either. ROCE ~13.5%, ROE ~11.6%, EV/EBITDA ~10.1x, P/E ~16.4x—all reasonable for a capital goods minnow trying to punch above its weight.

And then—plot twist—a rights issue of ₹24.56 Cr (1:4, price ₹120) drops right after Q3 results. Growth plus fundraising is either a smart scale-up… or a “cash please” moment. Curious already? Good. Let’s dissect this with gloves off and calculator on.

2. Introduction – The Long, Slow Arc of a Welding Warrior

DHIL isn’t a flashy startup. It’s a slow-burn industrial that survived cycles, commodity tantrums, and tender wars. The company manufactures welding electrodes, wires, fluxes, and metallurgical cored wires—unglamorous products that quietly hold India’s steel, shipyards, power plants, and infrastructure together.

Over the last few years, DHIL’s sales CAGR ~21% (5Y) and profit CAGR ~42% (5Y) suggest the business finally found rhythm after a choppy past (remember FY20–FY21? Yeah, nobody likes to). Inventory days have compressed, margins stabilized around 7% OPM, and quarterly profitability has become less allergic to consistency.

But this is not a dividend darling. Cash flows have been… let’s say temperamental. Operating cash flow swings, capex-heavy investing cash outflows, and debt-funded growth have kept the treasury tight. Hence the rights issue—more on that drama later.

Before we judge, let’s understand what they actually do.

3. Business