DCW Ltd

Restoration status

• Dhrangadhra plant, Gujarat, fully functional with production restored to normal capacity.

Financial impact

• Insurance claimed: approximately ₹10 crore under Stock and IAR Insurance policy.
• Actual damage due to flooding and water logging: approximately ₹10 crore.
• Estimated financial loss to production and profitability: ₹9.1 crore.

Restoration actions

• Safety assessment prioritized plant and employee safety.
• Immediate repairs and infrastructure upgrades to resume continuous processing.
• Temporary pumps installed to drain waterlogged areas.
• Inventory protection and supplier coordination to secure inputs.

Disclosure

• Annexure I contains completion details and financial estimates per Listing Regulations.

Financial Performance

• Revenue for Q1 FY27: INR 542 crores, up 14% YoY.
• Specialty Chemicals revenue: INR 177 crores, 33% of total.
• PVC volumes down 20% in Q1 FY27 due to West Asia disruption.
• CPVC volumes up 59% YoY; Specialty EBITDA up ~20% YoY.
• Basic Chemicals revenue INR 361 crores, down 18% YoY.
• EBITDA for quarter: INR 41.4 crores, down 28% YoY.
• Basic Chemicals EBITDA negative INR 14 crores.
• Tax regime changes: MAT credit; DTL reduced by INR 34 crores.
• Tax rate under new regime: 25.17% vs 34.9% earlier.
• Debt: legacy debt to be repaid in FY27; net debt-free by year-end FY27.
• FY27 outlook: expected to close at a better level than the previous fiscal.
• Industry backdrop: VCM supply improving; import duties reinstated.

Growth and Capex

• INR 250 crores capex plan over 2-3 years.
• SIOP capacity expansion to 45,000 tpa; Phase 1 adds 7,000 tpa.
• Phase 1 targeted completion by Q4 FY28.
• Phase 2 adds 8,000 tpa; sequencing to follow.
• Captive power project at Sahupuram to finish by Q4 FY28; lower power costs.
• Minimum ROCE of 20% on new investments.

Q&A Highlights

• Q1 sequential revenue decline driven by one-time base effect from Synthetic Rutile liquidation and PVC downtime.
• Specialty margin at 29.1% vs 33.6% prior; CPVC-PVC spread affects mix.
• SIOP margins around 35-36%; price realization north of INR 80,000/ton.
• Export mix: ~60% of SIOP exported; Synthetic Rutile 100% exports.
• PVC bottoming; MIP ~INR 80; domestic prices above MIP currently.
• Chlorine self-consumption improves caustic soda margins; no effluent charges incurred.
• VCM sourcing shifted to a global distributor; no merchant VCM in India.
• Capex timing: Phase 1 commissioning by Q4 FY28; scale-up contingent on market.

Export House status

• Ministry granted DCW Three Star Export House status under Foreign Trade Policy 2023.
• Certificate valid for five years from 29 June 2026 to 29 June 2031.
• Status to strengthen international presence and expand product portfolio and global reach.

Dhrangadhra Plant Restoration

• Operations at Dhrangadhra plant are being resumed in a phased manner after floods.
• Production is expected to return to normal levels within the next five days.
• Insurance claims: losses on stock and IAR are fully covered; exact recovery amount yet to be ascertained.
• Estimated financial impact from the calamity is yet to be quantified.
• Steps to restore normalcy include safety assessments, repairs, temporary pumps, inventory protection, and supplier coordination.

Growth & Capacity

• Specialty Chemicals grew 38% YoY; CPVC capacity expansion commissioned.
• Revenue from operations: INR 5,419 Mn, up 14% YoY.
• SIOP Phase I capacity up 7,000 MT; Phase II up 8,000 MT.
• Total SIOP expansion planned 15,000 MT; capex INR 250 Cr.
• 58 MW co-generation; solar ~20% of quarterly power.
• Sahupuram site offers >2,500-acre land bank for scaleup.
• Next growth phase targets CPVC capacity doubling and higher SIOP throughput.

Financial Performance

• Q1-FY27 revenue: INR 5,419 Mn; up 14% YoY.
• EBITDA INR 358 Mn; margin 6.61%; YoY (33.3%).
• PAT INR 345 Mn; YoY 202.6%.
• PAT Margin 6.37%.
• Diluted EPS INR 1.17; YoY 200%.
• Total expenses INR 5,061 Mn; YoY +20%.
• Net leverage improving; on track to net cash positive by FY27.

Capex & Capital Allocation

• Capex for SIOP and Power Plant planned at INR 250 Cr over 2-3 years.
• Phase I SIOP capex 7,000 MT; Phase II 8,000 MT; capex aligned to FY28.

Risks & Outlook

• VCM availability and prices affecting PVC realizations.
• PVC import duty suspensions impacting margins.
• Management targeting higher specialty chemicals mix for margin uplift.

Governance update

• Board authorized MD, President, CEO, CFO, and Company Secretary to determine materiality of events for disclosures.
• Disclosures under Regulation 30 to be filed with exchanges and hosted on DCW's website.

Expansion plan overview

• DCW to invest ₹250 crore as Phase 1 of growth programme.
• SIOP capacity to rise by 50% to 45,000 tpa via phased expansion.
• Capex to fund value-added pigments and captive power infrastructure.
• DCW expects net cash positive position at FY27 exit.
• FY26 SIOP sales volumes recorded with near-full capacity utilization.

Event

• DCW Limited appoints Sudarshan Ganapathy as Chief Executive Officer with effect from 13 August 2026.

Leadership and governance

• Ganapathy elevated from COO; joins as Key Managerial Personnel (KMP).
• Board-approved appointment provides leadership continuity.

Impact and focus

• Role to oversee strategy, finance, marketing and operations; focus on disciplined execution and specialty chemicals growth.

Financials

• No financial metrics disclosed in the release.

Meeting Details

• Date and time: Friday, August 14, 2026 at 02:00 pm IST.
• Type and mode: group virtual earnings call.
• Organizer: Arihant Capital Markets Ltd.

Participants

• Company management: President, Chief Operating Officer, Chief Financial Officer.

Purpose

• Earnings call to discuss DCW Limited's Q1FY27 results.