Dhabriya Polywood Limited: Scaling New Heights with Record Q2 FY26 Performance

Dhabriya Polywood Limited, a prominent name in PVC and uPVC-based products for building interiors and exteriors, has delivered an exceptional performance in the second quarter and first half of the financial year 2025-26. The company announced its unaudited financial results for the period ended September 30, 2025, showcasing record-breaking revenue, EBITDA, and the highest-ever Earnings Per Share (EPS) in its history. This stellar performance underscores the company's strategic focus on profitability, diversified product portfolio, and disciplined execution in a favorable market environment.

The company's consolidated revenue from operations for Q2 FY26 stood at INR 66.99 crore, marking a robust 15.4% year-on-year growth compared to INR 58.05 crore in Q2 FY25. For the first half of FY26, revenue reached INR 129.08 crore, an increase of 10.6% over INR 116.75 crore in H1 FY25. This growth was broad-based, driven by strong traction across extruded PVC profiles, uPVC and aluminum window and door segments, and the rapidly expanding Modular Furniture division. The emphasis on premium and design-led products, coupled with a favorable product mix and disciplined pricing, has been a key enabler of this performance.

Financial Highlights: A Quarter of Record Profitability

The most striking aspect of Dhabriya Polywood's performance is the significant improvement in profitability and margins. The Gross Profit for Q2 FY26 surged by 23.4% year-on-year to INR 34.73 crore, with the Gross Profit Margin expanding by 330 basis points to 51.8%. For H1 FY26, Gross Profit grew by 20.0% to INR 65.53 crore, with margins improving by 400 basis points to 50.8%.

EBITDA for Q2 FY26 witnessed an impressive 48.9% year-on-year increase, reaching INR 13.66 crore. The EBITDA margin strengthened significantly by 460 basis points to 20.4%. For H1 FY26, EBITDA grew by 41.3% to INR 26.02 crore, with margins expanding by 440 basis points to 20.2%. This expansion reflects a favorable product mix, higher capacity utilization, disciplined pricing, and efficiency gains at the plant level.

Profit After Tax (PAT) for Q2 FY26 soared by 82.0% year-on-year to INR 7.61 crore, with the PAT margin improving by 420 basis points to 11.4%. For H1 FY26, PAT increased by 60.3% to INR 14.15 crore, and the PAT margin improved by 340 basis points to 11.0%. The EPS for Q2 FY26 stood at INR 7.03, and for H1 FY26, it was INR 13.08, marking the highest-ever EPS in the company's history.

Strategic Initiatives and Market Outlook

Dhabriya Polywood's strategic direction is yielding tangible results, with a continuous focus on improving profitability and enhancing operating margins. The company is selectively investing in new extrusion and fabrication lines to enhance capacity, reduce order turnaround time, and meet growing demand for high-value window, door, and modular interior applications. A dedicated WPC door manufacturing facility is being set up, with commercial launch planned for Q3/Q4 FY26, a timeline that has been preponed from Q1 FY27. Additionally, capacities are being expanded in Southern India to serve customers more efficiently.

The company's modular interior and furniture brands, Studio Arezzo and Dynasty Modular Furniture, are gaining strong momentum, supported by rising brand visibility and deeper engagement with architects, interior designers, and retail customers. These brands are recognized for design innovation, durability, and sustainable product attributes. In H1 FY26, Modular Furniture contributed approximately 18% of the overall business, with the remaining 82% coming from PVC profile distribution and uPVC windows and doors. The fluted and soffit panels product line has already generated over INR 25 crore in H1 FY26, with a target of over INR 50 crore for the full year.

On the distribution front, Dhabriya Polywood is expanding its dealer and distribution network, unlocking new geographies while deepening its presence in existing high-potential regions. Participation in trade exhibitions across metro and Tier 2 cities has enhanced market visibility and driven healthy lead generation. The company has an unexecuted order book of approximately INR 127 crore for its window, door, and modular furniture divisions, primarily related to project business.

Management Commentary and Future Outlook

Mr. Digvijay Dhabriya, Chairman & Managing Director, highlighted that the company's strategic focus on strengthening premium and value-added product categories, expanding network-driven demand, and elevating design-led offerings will continue. He emphasized that the company is committed to delivering sustainable growth and enhancing long-term value for all stakeholders. Management is confident of achieving at least 20% top-line growth for FY26 and maintaining a 20% EBITDA margin for the full year.

While H1 FY26 revenue growth of 10.6% was below the company's long-term target of 20-25% annual growth for the next 3-4 years, management explained this was a conscious strategic choice to prioritize product mix and premium segments over low-margin, high-volume segments. They anticipate much better figures in H2 FY26 to meet the annual growth target. The company also plans to list on the National Stock Exchange (NSE) once it fulfills the eligibility criteria, possibly by the end of the current financial year.

Conclusion: A Foundation for Sustained Growth

Dhabriya Polywood Limited's Q2 and H1 FY26 results reflect a company in a strong operational and financial position. With record profitability, robust margin expansion, and a clear strategic roadmap for product innovation, capacity expansion, and market penetration, the company is well-poised for sustained growth. The focus on premium products, operational efficiencies, and a diversified portfolio provides a solid foundation, enabling Dhabriya Polywood to capitalize on the favorable macro environment in the building materials industry and continue its upward trajectory.