DCW Q1 FY27 Earnings Call — Analysis (NSE: DCW)

Q1 FY27 severely impacted by temporary West Asia disruption hitting PVC volumes and margins; management announced ₹250 Cr SIOP expansion and power capex, expects improvement from Q2.

· Analysis by Alpha Inflection

Result quality: stable — Steady quarter. Management sentiment: neutral.

The take

Q1 FY27 severely impacted by temporary West Asia disruption hitting PVC volumes and margins; management announced ₹250 Cr SIOP expansion and power capex, expects improvement from Q2.

Results

Revenue ₹542 Cr +14% YoY (-11% QoQ); EBITDA ₹41.4 Cr -28% YoY; Basic Chemicals EBITDA negative -₹14 Cr due to PVC losses; Specialty Chemicals EBITDA grew 20% YoY.

Guidance

Management announced a ₹250 Cr investment program for SIOP capacity expansion (30k to 45k tons) and captive power, targeting Phase 1 completion by Q4FY28 and minimum 20% incremental ROCE, while resetting steady-state EBITDA expectation to ~₹300 Cr.

Key themes

PVC disruption recovery and Specialty-led capex cycle

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