DDev Plastiks Q1 FY27 Results (NSE: DDEVPLSTIK)
Signal: Steady quarter
The read
The key inflection is revenue growth accelerating to +28.6% YoY from the company's reported 3.9% sales growth context, supported by the 48000 MTPA Bhiwadi facility commencing production; however, material costs grew +31.7% YoY versus revenue +28.6%, compressing gross margin by 58bps YoY, while finance costs rose +100.1% and kept PAT growth at +22.3%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹989.45 Cr | +28.6% | +29.2% |
| Net profit | ₹63.79 Cr | +22.3% | |
| EPS | ₹6.16 | +22.2% |
P&L walk
Standalone revenue rose to ₹98945.25 lakh, +28.6% YoY and +29.2% QoQ, while PAT increased +22.3% YoY; material costs grew +31.7% YoY and gross margin compressed 58bps YoY, limiting conversion of revenue growth into profit.
Key positives
- Revenue from operations reached ₹98945.25 lakh, +28.6% YoY and +29.2% QoQ, substantially above the reported 3-year sales CAGR of 13.24%.
- The Bhiwadi facility commenced commercial production on 28 April 2026 with 48000 MTPA installed capacity, adding a disclosed capacity-led growth lever.
- Employee and other expenses grew 22.2% YoY to ₹6544.07 lakh, slower than revenue growth of 28.6% YoY.
- EPS rose 22.2% YoY to ₹6.16, closely tracking PAT growth of 22.3% without a dilution signal.
Key concerns
- Gross margin declined approximately 58bps YoY to 15.8% as raw material cost increased to 85.6% of revenue from 83.7% YoY; the filing does not disclose whether the pressure was due to input prices, pricing or mix.
- Finance costs doubled YoY to ₹1106.10 lakh from ₹551.67 lakh and rose 35.6% QoQ, outpacing revenue growth and limiting profit conversion.
- Gross margin fell approximately 380bps QoQ from 19.6% as material costs consumed 85.6% of revenue versus 81.5% in the prior quarter.
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