Dhabriya Polywood FY26: Margin Expansion, New Verticals, and a Bigger Capex Cycle

Dhabriya Polywood ended FY26 with a clear shift in its financial profile. Consolidated revenue rose to INR 264.48 crores, up 12.5% year on year. But the bigger story was profitability. EBITDA increased 45.6% to INR 54.59 crores and PAT rose 67.2% to INR 30.14 crores. EBITDA margin expanded to 20.6% from 16.0% in FY25, while PAT margin improved to 11.4% from 7.7%.

The company attributes this step-up to operating leverage, manufacturing efficiencies, and a deliberate move toward higher-margin, differentiated offerings. The investor presentation frames this as a transition from being a single-execution-focused player to a more integrated, one-stop solution provider across PVC and uPVC profiles, doors and windows, paneling, and modular furniture.

FY26 performance: growth was steady, margins did the heavy lifting

In Q4 FY26, revenue increased 9.9% year on year to INR 69.74 crores, but EBITDA rose 43.9% to INR 14.72 crores and PAT increased 54.9% to INR 8.33 crores. Margin improvement was visible across the P and L. Q4 EBITDA margin came in at 21.1%, while gross margin was 51.1%.

For the full year, gross margin expanded to 51.5% from 47.5% in FY25. EBITDA margin improved by 460 basis points to 20.6%. The company highlighted that the improvement was driven more by product mix and operational efficiency than by inventory gains.

The historical trend also supports a structural improvement. FY24 EBITDA margin was 14.7%, FY25 was 16.0%, and FY26 reached 20.6%. PAT margin similarly moved from 6.7% in FY24 to 7.7% in FY25 and 11.4% in FY26.

Revenue mix and operating levers: core polymer business remains dominant

On the earnings call, management provided specific revenue break-ups that help anchor the FY26 performance.

PVC and uPVC together contributed INR 220 crores in FY26. Within that, the uPVC window division contributed about INR 60 crores, with the remaining INR 160 crores coming from the PVC profile division.

Fluted panels were a highlighted growth category. Management disclosed FY26 fluted panel revenue of INR 54 crores versus INR 38 crores in FY25. This is consistent with the company’s narrative around breaking China’s dominance in fluted panels and leveraging the Make in India opportunity.

Modular furniture was discussed at around INR 43 crores of revenue in FY26, with management acknowledging that growth has been slower than expected as the company prioritized profitability.

The company also emphasized its manufacturing footprint and channel reach, including six manufacturing facilities across Jaipur, Bangalore, and Coimbatore, and a dealer network of more than 800 channel partners. Capacity for PVC profiles and sheets is disclosed at 27,600 MT.

Capex cycle and new verticals: aluminium and WPC as the next growth engines

The biggest strategic announcement from the earnings call was the INR 100 crores Board-approved capex plan for FY26 to FY28. Management described it as the most significant capex program in the company’s history.

In FY26, the company deployed approximately INR 27 crores. This included expansion of PVC profile extrusion capacity by 3,600 MT per annum, taking the total to 27,600 MT. It also included capex toward WPC door extrusion and infrastructure for the aluminium glazing and window division.

Management indicated that further capex of INR 35 to 40 crores is planned in FY27, and potentially INR 20 to 30 crores in FY28, to complete the overall INR 100 crores program.

The aluminium windows and facade division appears to be the most immediate incremental driver. Management said the Bangalore unit is operational, while the Jaipur facility is under implementation with a new factory site under construction. Orders of over INR 50 crores plus were mentioned for the aluminium vertical, later stated as INR 56 crores on the call. The company guided FY27 revenue contribution of INR 40 to 50 crores from this division.

For aluminium, management also pointed to industry-standard pricing practices that reduce raw material volatility risk. The company stated that aluminium projects generally include a base-rate clause linked to NALCO, enabling a pass-through mechanism when aluminium prices move.

WPC doors are the other key addition. The company stated that machines are commissioned and trial runs are underway, with commercial launch planned from Q2 FY27. Management guided about INR 15 crores of revenue from WPC doors in FY27, since the ramp is expected to be weighted toward the second half.

Management also discussed WPC wall and ceiling panels and profiles, planned for the third and fourth quarters of FY27. In a separate response, the company guided that incremental revenue addition in FY27 from the new capex and verticals could be around INR 55 to 60 crores.

Working capital and cash flows: a pressure point to track

While profitability improved sharply, FY26 cash flow numbers show a weaker operating cash conversion.

Net cash from operating activities declined to INR 8.18 crores in FY26 from INR 17.08 crores in FY25. The main reason was working capital movement. Working capital change was minus INR 40.34 crores in FY26.

The balance sheet reflects this. Inventories rose to INR 69.42 crores as of March 2026 versus INR 55.75 crores in March 2025, and trade receivables increased as well. One notable shift was trade payables. Dues to creditors other than micro and small enterprises reduced to INR 0.38 crores in March 2026 from INR 9.75 crores in March 2025.

Management addressed this directly. The CFO said the company paid off suppliers in the last two months of FY26 as a strategic decision, citing concerns around Middle East-driven supply chain disruption and input inflation. They also stated that working capital levels should normalize toward earlier patterns.

Borrowings increased on the current liability side, with current borrowings rising to INR 51.68 crores in March 2026 from INR 31.60 crores in March 2025. Management maintained that debt-to-equity was around 0.56 and indicated it would not reach 0.75 even through the capex cycle.

Takeaways

Dhabriya Polywood’s FY26 result was defined by margin expansion more than top-line acceleration. The company is now entering a heavier investment phase, with a clearly stated INR 100 crores capex program across FY26 to FY28 and early traction in the aluminium windows and facade division.

The next 12 to 24 months will be shaped by execution. Management indicated the project order book of INR 174 crores is expected to be executed over the next 18 to 24 months. At the same time, investors will likely track whether operating cash flows recover as working capital normalizes and as new verticals scale.

From the documents, the company’s positioning is clear: expand the product ecosystem, move further into premium categories, and sustain 20% plus EBITDA margins while targeting long-term revenue growth of around 30% CAGR.