Dhabriya Polywood H1 profit rises 27.6%, margin reaches 22%

Dhabriya Polywood reported profit after tax of Rs 18.06 crore in H1 FY27, up 27.6% year on year, as revenue rose 13.2% to Rs 146.10 crore and earnings before interest, tax, depreciation and amortisation (EBITDA) margin expanded 180 basis points to 22.0%.

What did Dhabriya Polywood report for H1 FY27?

Dhabriya Polywood reported faster growth in earnings than sales in H1 FY27. Revenue from operations increased from Rs 129.08 crore in H1 FY26 to Rs 146.10 crore, while EBITDA rose 23.5% from Rs 26.02 crore to Rs 32.14 crore. Profit after tax (PAT) increased by Rs 3.91 crore from Rs 14.15 crore to Rs 18.06 crore, producing the reported 27.6% growth rate.

The six-month comparison shows that profit growth outpaced revenue growth. The consolidated income statement reported a 13.2% increase in revenue, against 15.2% growth in gross profit, 23.5% growth in EBITDA and 30.4% growth in profit before tax, before the effect of tax expense.

How much did Dhabriya Polywood’s margins improve?

Dhabriya Polywood’s EBITDA margin rose to 22.0% in H1 FY27 from 20.2% in H1 FY26, an expansion of 180 basis points, where 100 basis points equal one percentage point. Its PAT margin increased to 12.4% from 11.0%, a 140-basis-point gain. The difference between revenue growth of 13.2% and EBITDA growth of 23.5% aligns with the higher operating margin reported for the period.

The margin movement extended above the EBITDA line in H1 FY27. Gross profit margin was 51.7%, compared with 50.8% a year earlier, while earnings before interest and tax (EBIT) margin increased to 18.7% from 16.7%, a 200-basis-point change. EBIT rose 26.6% to Rs 27.26 crore from Rs 21.53 crore before finance cost and tax.

What changes in costs and profit explain the margin expansion?

Dhabriya Polywood generated gross profit of Rs 75.46 crore in H1 FY27, Rs 9.93 crore above the Rs 65.53 crore recorded in H1 FY26. Raw-material expense rose to Rs 70.63 crore from Rs 63.55 crore, an increase of Rs 7.09 crore, while revenue increased by Rs 17.01 crore. Gross profit therefore grew 15.2%, ahead of the 13.2% increase in revenue.

Employee expense increased to Rs 23.65 crore from Rs 20.33 crore in H1 FY26, while other expenses rose to Rs 19.67 crore from Rs 19.19 crore. The Rs 48.6 lakh increase in other expenses was lower than the Rs 6.12 crore increase in EBITDA. Depreciation rose to Rs 5.31 crore from Rs 4.83 crore, and finance cost increased by Rs 6.2 lakh to Rs 2.92 crore, while profit before tax increased 30.4% to Rs 24.34 crore.

Tax expense was Rs 6.27 crore in H1 FY27, compared with Rs 4.52 crore in H1 FY26. That increase was proportionately greater than the Rs 5.67 crore rise in profit before tax, which explains why PAT growth of 27.6% was below the 30.4% growth in pre-tax profit. Even so, the H1 FY27 PAT margin of 12.4% was 140 basis points above the prior-year 11.0% margin.

How did the second quarter compare with the first quarter and last year?

Dhabriya Polywood’s Q2 FY27 revenue was Rs 77.78 crore, up 16.1% from Rs 66.99 crore in Q2 FY26 and 13.9% from Rs 68.31 crore in Q1 FY27. Q2 EBITDA was Rs 16.38 crore, 19.9% above Rs 13.66 crore a year earlier and 3.9% above Q1 FY27 EBITDA of Rs 15.76 crore. PAT reached Rs 9.21 crore, rising 20.9% year on year and 3.9% sequentially.

The quarterly margin trend differed from the half-year comparison. The consolidated income statement put Q2 FY27 EBITDA margin at 21.7%, compared with 23.07% in Q1 FY27, a sequential decline of 200 basis points. PAT margin moved from 13.0% in Q1 FY27 to 11.8% in Q2 FY27, down 120 basis points, though it was 40 basis points above the 11.4% margin in Q2 FY26. The managing director described Q2 FY27 as the company’s highest quarter for revenue, EBITDA, PAT and earnings per share.

Which businesses and orders does management identify as future drivers?

Dhabriya Polywood’s management said the Plastic Products, or uPVC/PVC, business generated Rs 130.5 crore of revenue in H1 FY27 and recorded a 19.4% segment margin. In Q2 FY27, the same business contributed Rs 69.5 crore, or 89% of gross turnover, with an 18.6% segment margin. Management attributed improved realisations and profitability to premiumisation, a richer product mix and operating efficiencies.

The Modular Furniture segment reported Q2 FY27 revenue of Rs 8.4 crore and a 10.3% segment margin, below the Plastic Products segment’s 18.6% in the same quarter. Management also said the total order book exceeded Rs 240 crore as of the presentation date, including more than Rs 100 crore in the Aluminium Windows & Façade division. It expects revenue conversion from that division to begin from Q4 FY27 and said the second half is typically seasonally stronger.

Conclusion

Dhabriya Polywood’s H1 FY27 results show that profit growth exceeded revenue growth as profitability widened through the income statement. Revenue rose 13.2%, gross profit rose 15.2%, EBITDA rose 23.5% and PAT rose 27.6%, while EBITDA and PAT margins reached 22.0% and 12.4%, respectively. The comparison also shows employee expenses rising faster than sales, while other-expense growth was comparatively limited.

The next disclosed milestones are second-half performance and the anticipated Q4 FY27 revenue conversion in Aluminium Windows & Façade. Management’s order book exceeded Rs 240 crore, including more than Rs 100 crore for that division, providing the disclosed pipeline. Quarterly margins also warrant attention after Q2 EBITDA margin declined 200 basis points from Q1 FY27.