Summary
Ddev Plastiks Industries Limited - Q3 FY26 Earnings Call Summary Tuesday, February 10, 2026, 4:00 PM IST
Event Participants
Executives 5 Arihant Bothra (CFO), Ddev Suranna (Whole-Time Director & CEO), Narrindra Suranna (Chairman & MD), Rajesh Kothari (Whole-Time Director), Rakesh Tiwari (CEO, Renewable Energy)
Analysts 5 Archana (IDBI Capital), Bhargav (Ambit Asset Management), Guru Darshan (Kitara Capital), Manan Poladia (MKP Securities), Saket Kapoor (Kapoor and Company)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue from Operations | ₹733 crores | +11% YoY; driven by strong wire and cable demand and higher ASPs. |
| EBITDA | ₹80 crores | +180 bps per ton vs Q2; margin maintained at 11% despite volatility. |
| PAT | ₹48 crores | 7% margin; 9M FY26 PAT stands at ₹147 crores. |
| Export Revenue | ₹196 crores | +27% YoY; accounts for 27% of total Q3 revenue despite global disruptions. |
| Installed Capacity | 2,68,400 MTPA | Incremental 30,000 MTPA commissioned in Q3 (25k PVC, 5k HFFR). |
| Capacity Utilization | 81% (9M Avg) | Expected to normalize to >70% post recent capacity additions. |
| Volume Sold | ~52,000 tons (Q3) | +6% YoY; 9M FY26 production volume reaches ~1,50,000 tons. |
| EBITDA per Ton | ₹15,500 | +₹150-200 QoQ; management targets range of ₹15,000-16,000. |
Geographic & Segment Commentary
- Domestic Market: Revenue grew 13% in 9M FY26, supported by infrastructure momentum and entry of new players like Adani and UltraTech in the cable segment. Management anticipates a growth pickup as US trade uncertainties resolve.
- Exports: Reached ₹523 crores in 9M FY26 (+33% YoY). Strategy focuses on UL-certified products for the US and CPR-compliant compounds for Europe to capture higher-end markets.
- BESS (New Segment): Entering the battery energy storage market with a 5 GW initial plant in Ahmedabad. Revenue projection of ₹800-₹900 crores per 1 GW capacity, focusing on prismatic LFP cell assembly.
Company-Specific & Strategic Commentary
- BESS Diversification: Investing ₹150 crores via internal accruals for Phase 1 (5 GW plant). Operations to commence in H2 FY27, targeting ₹300-₹500 crores in the first partial year of operations.
- Capacity Expansion: Commissioned 30,000 MTPA additional capacity at a cost of ₹50 crores. Focus remains on high-margin HFFR (replaces PVC in public infra) and PVC for building wires.
- Market Positioning: Company remains the only listed HFFR manufacturer in India with a >33% market share in XLPE compounds.
- Strategic Rationale: Expansion into BESS is viewed as synergistic with the power transmission sector, leveraging existing relationships with PSUs like NTPC and Power Grid.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue Target | ₹5,000 crores by FY30 | Baseline target from existing compound business; BESS revenue will be additive. |
| BESS Revenue | ₹800-₹900 crores by FY28 | Based on achievement of 1 GW capacity utilization; current price ~$100/kWh. |
| Growth Rate | >12% CAGR | Management confident in surpassing earlier 10-12% growth guidance for FY26. |
| Export Mix | 20%-25% Total Revenue | Long-term target for FY30 to maintain high-margin geographical diversification. |
Risks & Constraints
| Risk | Context |
|---|---|
| Working Capital Intensity | BESS business is highly working capital intensive (procurement-led). Management plans to mitigate this through non-fund based limits and 60-75 day cycles. |
| Backward Integration | Large cable players are attempting captive compounding for commodity PVC. Ddev mitigates this by focusing on high-voltage (11kV+) and specialized UL/CPR certified grades. |
| Raw Material Volatility | Reliance on lithium-ion cell imports for BESS and crude-linked polymers. Pricing for BESS is expected to fluctuate based on global cell price benchmarks. |
Q&A Highlights
BESS Execution & Technology
- Question: How is execution being handled for a new line of business? (Guru Darshan)
- Answer: Building a reliability lab in-house; focusing on prismatic cells (314Ah to 600Ah) with 6,000-10,000 cycle lives. Line starts June/July 2026 (Rakesh Tiwari).
Margin Sustainability
- Question: Will PVC capacity additions dilute margins? (Saket Kapoor)
- Answer: No, additions are for high-margin house wiring (Adani/UltraTech demand) and UL-approved grades, which generally carry better-than-average margins (Rajesh Kothari).
Capital Allocation
- Question: How does BESS impact existing business capital? (Manan Poladia)
- Answer: Existing compounding business remains priority #1; BESS is funded via excess cash/internal accruals only. Current limits are sufficient (Arihant Bothra).
US Trade Impact
- Question: Will US tariff resolution boost domestic growth via “deemed exports”? (Bhargav)
- Answer: Yes, customers are now aggressively approaching the US market. Ddev is the only Indian player with required UL certifications for these specific export grades (Rajesh Kothari).
Key Takeaway
Ddev Plastiks delivered a resilient Q3 FY26, characterized by an 11% YoY revenue growth and a notable 27% surge in exports despite geopolitical headwinds. The company successfully commissioned 30,000 MTPA of new capacity in PVC and HFFR, strategically positioning itself to supply major new market entrants like Adani and UltraTech. The pivotal highlight of the quarter was the formal entry into the Battery Energy Storage Systems (BESS) sector with an initial 5 GW capacity plant in Ahmedabad, funded entirely through internal accruals of ₹150 crores. While the core compounding business remains the primary driver with a ₹5,000 crore revenue target by FY30, the BESS initiative provides a high-growth “sunrise” vertical targeting the renewable energy ecosystem. Management maintains a confident outlook for FY26, expecting to exceed 12% CAGR growth while closely managing the high working capital requirements inherent in the new energy storage segment.
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