Ddev Plastiks FY26: Steady compounding growth, and a measured entry into BESS

Ddev Plastiks Industries Limited ended FY26 with growth that held up despite a difficult external environment. Consolidated revenue for FY26 stood at INR 2,948 crore, with EBITDA of INR 320 crore and PAT of INR 202 crore. Management attributed the year’s volatility largely to the Israel-Iran conflict that escalated from 28 February 2026, which disrupted export transit routes and caused sharp fluctuations in raw material availability and pricing. Even so, the company reported revenue growth of 13% year-on-year, EBITDA growth of 12%, and PAT growth of 9%.

The core business remains polymer compounding, with a strong bias toward the wires and cables value chain. In FY26, wires and cables contributed 61% of revenue, while packaging contributed 34%. By geography, India accounted for 76% and overseas markets for 24% of revenue. Management highlighted that exports grew 30% year-on-year, while export volumes grew 23% even in a disrupted environment. In the concall, management said March was the weakest month due to logistics issues, but a portion of stuck consignments moved in April.

Business mix and capacity building remain the central levers

Ddev Plastiks positions itself as India’s largest listed manufacturer of polymer compounds. It reported installed capacity of 2,68,400 MTPA as of March 2026, supported by multiple plants across West Bengal, Daman and Diu, and Dadra and Nagar Haveli. Capacity expansion was a major theme through FY26 and into FY27, with management stating that additions in PVC and HFFR were completed during FY26 and a new 48,000 MT XLPE facility became operational from April 2026.

The FY26 revenue mix by product category underlines the company’s current dependence on cable-linked compounds. PVC contributed 72% of FY26 revenue, polyethylene-based products contributed 11%, and others contributed 18%. Management also highlighted product categories with different margin bands, with engineering plastic compounds and HFFR described as higher-margin products relative to antifab/filled compounds.

A key near-term question is utilisation of new capacity. Some slides show utilisation figures that are not directly consistent across the deck, but management commentary in the concall focused on timing. They stated that large capacity additions came up in the last few months, making near-term utilisation appear lower, and suggested that new units, including the Bhiwadi XLPE facility, would take time to ramp.

FY27 guidance: growth with margin stability, and conservative realizations

For FY27, management guided to around 13% revenue growth and 15% volume growth to approximately 231,000 MT, with EBITDA margins expected to remain around 11% for the core polymer compounding business. When asked whether higher volume growth versus revenue growth implies lower realisations, management explained they used conservative base realisations, as FY26 saw multiple price escalation cycles and prices could normalise if the geopolitical situation stabilises.

On price pass-through, management said the typical lag is 7 to 15 days, but in periods of sharp volatility the pass-through can be immediate. They also stated they do not generally operate with long annual fixed-price contracts, and that export contracts may be up to around 90 days, with back-to-back import bookings used to manage exposure.

A second financial theme through the year was working capital. Inventory and receivables rose at the end of FY26. Management attributed this primarily to steep raw material price increases, stating the spike was in the 50% plus range during the period of heightened disruption, and argued that on a price-adjusted basis the increase is more comparable.

The balance sheet narrative remains conservative. The company highlighted that it became net debt-free in 4Q FY24 and intends to maintain that status through FY27 and beyond. Credit ratings disclosed in the presentation are CRISIL A+/Stable for long-term and CRISIL A1+ for short-term.

BESS: a new vertical with phased capex and an assembly-led start

The most material strategic announcement is the company’s entry into Battery Energy Storage Systems (BESS). Management framed BESS as a structural opportunity linked to renewable integration and grid stability. The plan outlined is an assembly-led manufacturing model with phased capacity addition. The investor presentation states Phase 1 targets a 5 GWh assembly plant expected by Q3 FY27, with investment of INR 150 to 200 crore funded through internal accruals. The company also stated that revenue from BESS will be recognized as a new business segment from 2H FY27.

The presentation associates a revenue potential of around INR 800 to 900 crore per 1 GWh. It also provides a BESS roadmap that includes revenue potential of INR 300 to 500 crore in H2 FY27, INR 800 to 900 crore in FY28, and INR 4,000 to 4,500 crore in FY30. Initial EBITDA margins for BESS are stated around 6 to 8% (and elsewhere 5 to 8%), with an initial working capital cycle of 60 to 75 days, and expected ROCE of 25 to 30% with payback of 2 to 3 years.

In the concall, management clarified that FY27 capex guidance of around INR 175 crore includes BESS. They indicated that in FY27, the BESS capex allocation is around INR 70 crore because the larger INR 150 to 200 crore is phased. For FY27, management also indicated they have not included BESS revenue in the formal guidance due to ramp-up and stabilisation, though they discussed an internal expectation of about INR 200 to 250 crore of BESS revenue as a breakeven level. They also discussed targeting around 1 GWh of sales in FY28, implying INR 800 to 900 crore of revenue and EBITDA margin of 10 plus at that scale.

Management acknowledged that BESS will initially rely on imported cells and certain components, including imports from China. They also stated an intent to build capabilities in core systems such as BMS and EMS over time, including developing own IP.

Takeaways

Ddev Plastiks ended FY26 with stable margins and continued growth, even as geopolitical disruptions affected exports and input prices. The company enters FY27 with higher installed capacity and clear numerical guidance on volume growth, revenue growth, and EBITDA margins for the core polymer compounding business. The BESS entry adds a second growth engine, but it is explicitly positioned as phased, assembly-led, and ramp-dependent in the near term.

The near-term investor focus points, based on management commentary, are the ramp-up of new XLPE capacity commissioned in April 2026, the ability to sustain 11% EBITDA margins amid raw material volatility, and early execution milestones for BESS starting 2H FY27.