Dhabriya Polywood Ltd

Order details

• Awarding entity: Godrej Properties Ltd.
• Nature and scope: External Facade Works.
• Domestic awarding entity.
• Total value: 4.78 Crore including GST; execution in various tranches.
• Time to complete: 12 months.
• Promoter/group interest: No.
• Related party/arm's-length: No.

Order details

• Awarding entity: Indian Company (name withheld for competitive reasons).
• Scope: Supply and installation of UPVC and aluminum doors and windows.
• Value: ₹13.10 crore including GST.
• Domestic: Yes (domestic award).
• Timeline: Completion within 18 months (aluminum) and 12 months (UPVC) in tranches.
• Promoter/related party: No promoter/group interest; not a related-party, arms-length.

Business Overview

• Core business is manufacturing of uPVC/PVC building profiles and engineered products.
• Key segments: Windows & Glazing, WPC doors, wall & ceiling panels, and aluminium façades.
• Premiumisation and richer product mix driving margin improvement and capex expansion.

Operational Highlights

• Q1 FY27 revenue ₹68.3 crore, up 10% YoY; EBITDA ₹15.8 crore.
• EBITDA margin expanded to 23.1% in Q1 FY27.
• PAT ₹8.9 crore; PAT margin 13.0%; EPS ₹8.18.
• uPVC/PVC now 89% of turnover; margins >20%.
• Project order book at all-time high of ₹200+ crore.
• WPC doors and wall/ceiling panels entering commercialisation in Q2 FY27.
• Aluminium Windows & Façade progressing toward meaningful growth contributor.
• Capex growth plan to expand capacity and new product categories.

Financial Performance

• Revenue from operations: ₹6,831.4 lacs in Q1 FY27, up 10% YoY.
• Gross profit ₹3,572.5 lacs; gross margin 52.3%.
• EBITDA ₹1,576.1 lacs; EBITDA margin 23.1%.
• Profit after tax ₹885.8 lacs; PAT margin 13%; EPS ₹8.18.
• Highest-ever quarterly EBITDA, PAT, and EPS in Q1 FY27.
• FY24–FY26 trend shows margin expansion and growth.
• Balance sheet: total assets Mar-26 ₹22,554.6 lacs; equity ₹12,959.9 lacs.
• Borrowings: non-current ₹2,479.6 lacs; current ₹5,168.3 lacs.
• Cash flow: cash from operations ₹1,492.1 lacs in FY26; capex ₹-2,616.2 lacs.

Capital Structure & Liquidity

• Total borrowings at Mar-26: ₹7,647.9 lacs (non-current ₹2,479.6; current ₹5,168.3).
• Cash and cash equivalents ₹642.9 lacs at Mar-26.
• Equity and Other Equity rose to ₹11,877.5 lacs by Mar-26.
• Capex planned for capacity expansion and new product categories.

Strategic Priorities & Outlook

• Capex to be increased for the second consecutive year.
• Focus on premiumisation and richer product mix to sustain margins.
• Windows, WPC, and aluminium façade segments to be growth contributors.
• Order book around ₹200 crore indicates strong visibility.
• MD commentary notes strong foundation and growth visibility.

Governance & Leadership

• Promoter and MD Digvijay Dhabriya leads the company.

Key quarterly results

• Revenue ₹68.31 crore; PAT ₹8.86 crore for Q1 FY27.
• EBITDA ₹15.76 crore; EBITDA margin 23.07% (YoY +317 bps).
• EPS ₹8.18 (not annualised); YoY up 35.4%.
• Order book at all-time high ₹200 crore+.
• Premium mix now 89% of turnover; margins supported by product mix.

Capex and capacity expansion

• Board approves ₹100 crore capex for extrusion capacity, WPC lines, and aluminium facility.

Outlook and guidance

• PAT expected to grow ~30% CAGR over the medium term.
• Guidance: margin expansion supported by premium mix and operating leverage.

Balance sheet and rating

• CRISIL upgrades bank facilities to BBB+/Stable in July 2026.
• Interest coverage improved to 9.24x; debt/equity remains comfortable.

Order book and new revenues

• WPC doors/panels and aluminium windows/facades to drive new revenue verticals.
• WPC launch commercially in Q2 FY27; aluminium division meaningful in first full year.

Key disclosures

• Unaudited standalone and consolidated results for quarter ended 30 June 2026 approved.
• Draft Directors Report and Notice for the 34th AGM approved; AGM date to be announced.
• Independent auditor's review reports received; no material adverse remarks.
• No investor complaints pending as of June 30, 2026.

Acquisition details

• Target Company: Dhabriya Polywood Limited.
• Acquirer and PAC: India – Ahead Venture Trust via Abakkus Venture Opportunities Fund.
• Promoter group: No.
• Stock exchange: BSE Limited.
• Pre-acquisition holding: No prior holding reported.
• Acquisition: 6,01,341 voting rights shares acquired; 5.56% of TC.
• Mode: Open Market; Date: July 23, 2026.
• Post-acquisition holding: 6,01,341 voting rights shares; 5.56%.
• Total diluted share capital after: INR 10,82,42,450 comprising 1,08,24,245 equity shares.
• Equity capital before/after: INR 10,82,42,450 comprising 1,08,24,245 equity shares (face value ₹10).
• Salient features: Equity Shares; no VRs or warrants; no encumbrances.

Order details

• Awarding entity is Indian Company (name withheld for competitive reasons).
• Nature and scope: Supply and installation of aluminum doors and windows.
• Contract value is ¥18.59 crore including GST.
• The awarding entity is domestic.
• Timeline: 11.4 months to completion in multiple tranches.
• Contract type is LOI/work order.
• Promoter group is none; not a related party transaction.

Rating action & key drivers

• Action: CRISIL upgrades Dhabriya Polywood long-term rating to BBB+/Stable.
• Instrument: Rs 35 crore bank facilities rated long-term BBB+/Stable.
• Outlook: Stable.
• Rationale: improved business risk profile with revenue growth and profitability.
• FY2026 revenue: Rs 264.5 crore; EBITDA margin 20.6%.
• Margin expansion aided by higher-value products such as fluted panels and aluminium facades.
• Financial risk profile: moderate net worth, low leverage; gearing 0.59x; TOL/TNW 0.76x.
• Interest coverage: 9.8x; net cash accrual to debt: 0.52x.
• Liquidity: adequate; bank limit utilization ~54% over 12 months to May 2026.
• Projected cash accrual: Rs 40–55 crore to cover debt obligations Rs 8–14 crore.
• Current ratio: 1.82x as on 31-Mar-2025.
• Material change: upgrade from BBB/Stable to BBB+/Stable.
• Consolidation: DPL, DMFPL, PPPL, PGBSPL considered in assessment.
• Key financials (FY2025–26 provisional): Operating income Rs 264.48 crore; PAT Rs 30.14 crore; PAT margin 11.40%.

Demat status and rematerialisation

• Regulation 74(5) not applicable; all shares in demat form and no rematerialisation requests received.
• No dematerialisation/rematerialisation requests were received during the quarter ended 30 June 2026.