DDEV Plastiks H1 revenue rises 36% as EBITDA margin falls

DDEV Plastiks reported H1FY27 revenue of Rs 1,968 crore, up 36% year on year, while EBITDA margin declined 112 basis points to 10%. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 22% to Rs 187 crore, and profit after tax (PAT) rose 17% to Rs 116 crore, slower than revenue growth.

What did DDEV Plastiks report for H1FY27?

DDEV Plastiks reported revenue from operations of Rs 1,968 crore in H1FY27, compared with Rs 1,449 crore in H1FY26, while profit before tax increased 16% to Rs 155 crore from Rs 133 crore. PAT rose to Rs 116 crore from Rs 99 crore, and basic earnings per share increased 17% to Rs 11.19 from Rs 9.59.

Revenue expanded faster than EBITDA and PAT during the first half. EBITDA rose 22% to Rs 187 crore from Rs 154 crore, while EBITDA margin moved to 10% from 11%. PAT margin declined to 6% from 7%, a fall of 97 basis points, with one basis point equal to one-hundredth of a percentage point.

DDEV Plastiks also reported earnings before interest and tax of Rs 177 crore in H1FY27, up 22% from Rs 146 crore in H1FY26. The presentation says EBITDA and earnings before interest and tax include other income, and its figures are rounded to the nearest digit.

Why did DDEV Plastiks' revenue grow faster than profit?

DDEV Plastiks attributed its 36% H1FY27 revenue increase to the ramp-up of capacities commissioned in the second half of FY26 and continued demand from the wires-and-cables industry. The company identified renewable energy, power transmission and distribution, data centres and infrastructure investment as demand supports during the Rs 1,968 crore reporting period.

The disclosed income statement shows that the sales increase did not translate proportionately into operating and net earnings. EBITDA rose by Rs 33 crore to Rs 187 crore, against a Rs 519 crore increase in revenue, while PAT increased by Rs 17 crore to Rs 116 crore. The presentation does not provide a separate explanation for the 112-basis-point decline in the H1FY27 EBITDA margin.

The 10% H1FY27 EBITDA margin was also below the 11% recorded in FY25 and FY26, and below the 12% reported in FY24. PAT margin followed the same direction, at 6% in H1FY27 versus 7% in each of FY24, FY25 and FY26, although a half-year period is not directly comparable with a full financial year.

Exports accounted for 29% of H1FY27 revenue, with DDEV Plastiks citing a rebound in export demand during the quarter. Management said volume growth continued despite geopolitical uncertainty and supply-chain disruptions, supported by wires-and-cables demand and operational execution, but it did not disclose export revenue in rupees.

What changed in DDEV Plastiks' Q2FY27 performance?

DDEV Plastiks' Q2FY27 revenue was Rs 978 crore, up 44% from Rs 680 crore in Q2FY26 but down 1% from Rs 989 crore in Q1FY27. EBITDA was Rs 86 crore, 16% above the Rs 75 crore reported a year earlier but 15% below Rs 101 crore in the preceding quarter.

Q2FY27 EBITDA margin was 9%, compared with 11% in Q2FY26 and 10% in Q1FY27. The year-on-year margin movement was 216 basis points, while the sequential movement was 138 basis points, according to the presentation's rounded figures.

Net profit was Rs 52 crore in Q2FY27, 10% above Rs 47 crore in Q2FY26 but 19% below Rs 64 crore in Q1FY27. PAT margin was 5%, versus 7% a year earlier and 6% in the prior quarter, while basic and diluted earnings per share were both Rs 5.02, compared with Rs 4.55 and Rs 6.16 respectively.

Interest expense reached Rs 12 crore in Q2FY27, up 68% from Rs 7 crore in Q2FY26 and 4% from Rs 11 crore in Q1FY27. For H1FY27, interest increased 82% to Rs 23 crore from Rs 12 crore, while depreciation rose 18% to Rs 10 crore from Rs 8 crore.

How does DDEV Plastiks' H1FY27 position compare with earlier periods?

DDEV Plastiks recorded FY26 revenue of Rs 2,948 crore, up from Rs 2,603 crore in FY25, while EBITDA increased to Rs 320 crore from Rs 287 crore. The FY26 EBITDA margin was 11%, one percentage point above the 10% reported for H1FY27, and FY26 PAT was Rs 202 crore with a 7% PAT margin.

The historical series shows EBITDA rising from Rs 186 crore in FY23 to Rs 282 crore in FY24, before reaching Rs 287 crore in FY25 and Rs 320 crore in FY26. Over the same four full-year periods, EBITDA margin increased from 7% in FY23 to 12% in FY24, then stood at 11% in FY25 and FY26 before the 10% H1FY27 outcome.

Total assets stood at Rs 1,617 crore at H1FY27, compared with Rs 1,444 crore at FY26. Trade receivables rose to Rs 668 crore from Rs 554 crore, inventories declined to Rs 373 crore from Rs 392 crore, and current borrowings increased to Rs 67 crore from Rs 52 crore.

Total equity increased to Rs 1,116 crore at H1FY27 from Rs 1,013 crore at FY26, while total current liabilities rose to Rs 462 crore from Rs 397 crore. Tangible assets increased to Rs 349 crore from Rs 279 crore, and capital work in progress declined to Rs 4 crore from Rs 50 crore over the same period.

Conclusion

The H1FY27 result combines rapid capacity-supported sales growth with lower profitability ratios. Revenue grew by Rs 519 crore year on year, but EBITDA increased by Rs 33 crore and PAT by Rs 17 crore; Q2FY27 added a sequential decline in EBITDA to Rs 86 crore and net profit to Rs 52 crore.

The next disclosed milestones are capacity and revenue plans. Management plans to raise halogen-free flame-retardant capacity to 20,000 metric tonnes per annum and add 6,000 metric tonnes per annum of cross-linked polyethylene compound capacity in eastern India by FY27, alongside a stated revenue objective of Rs 5,000 crore by FY30; the presentation does not set a margin target for those plans.