DCW LIMITED

Recommendation history

• 2026-05-06HoldHold: DCW delivered solid FY26 earnings—revenue rose 7.2% to Rs.2,144 crore, EBITDA increased 11.2% to Rs.240 crore and PAT grew 60% to Rs.48 crore—while net debt fell to just Rs.71 crore. However, specialty EBITDA declined 6.5% to Rs.177 crore, C-PVC realizations fell over 20%, the earlier Rs.400 crore EBITDA ambition is now “derailed,” and FY27 earnings remain highly dependent on volatile PVC/VCM spreads and geopolitics.
• 2026-02-11HoldHold: DCW delivered Q3 revenue of INR 520 crore, up 9.6% YoY, but EBITDA fell 19% to INR 50 crore as PVC pricing pressure eliminated Basic Chemicals EBITDA; Specialty Chemicals revenue rose 27% to INR 156 crore, yet Specialty EBITDA grew only 4.2% despite strong CPVC and SIOP volume growth. The bull case is a near-term PVC recovery, completion of the 50,000-tonne CPVC capacity, and deleveraging; the key tension is that volume growth is not translating into margins while Chinese oversupply and peer CPVC additions remain unresolved.
• 2025-11-05HoldHold: DCW delivered improving earnings—Q2 revenue rose 10.3% YoY to Rs. 539 crore, EBITDA increased 51% YoY to Rs. 62.6 crore, and PAT turned positive at Rs. 13.8 crore—but the quality of growth remains mixed. CPVC capacity reached full utilization, yet CPVC prices fell over 15% sequentially, while PVC remains near breakeven pending anti-dumping duty action; the balance-sheet improvement is the clearest positive, with net debt around Rs. 155 crore.
• 2025-08-11HoldHold. Q1 showed improving earnings quality despite weak revenue: revenue fell 4.8% YoY to INR475 crore, while EBITDA rose 12% to INR58 crore and PAT increased 70% to INR11.4 crore; EBITDA margin improved to 11.3% and finance cost fell to INR15 crore, the lowest in 32 quarters. The bull case is specialty-chemical mix, C-PVC ramp-up, solar savings and targeted net debt/EBITDA below 0.5x by FY26-end, but PVC oversupply, falling PVC/C-PVC realizations, likely near-term C-PVC oversupply and management’s refusal to guide earnings keep the risk/reward from being a clean buy.
• 2025-05-13HoldHold: FY25 EBITDA rose 12% to INR217 crore and PAT doubled to INR30 crore, but Q4 EBITDA fell 10.5% to INR62 crore as basic-chemicals EBITDA collapsed 59% for the year to INR19 crore. Specialty Chemicals is the clear bull case—INR189 crore of FY25 EBITDA and a 30,000-ton CPVC expansion—but the thesis still depends on an unproven recovery in PVC, Soda Ash and Synthetic Rutile pricing, alongside optimistic execution assumptions for FY27 EBITDA of roughly INR400 crore.
• 2024-08-14HoldHold: Q1 revenue rose 14% YoY to ₹500 crore, but EBITDA fell 6.5% to ₹51.5 crore and margin compressed to 10%. Specialty chemicals are the clear bull case—EBITDA nearly doubled to ₹47.8 crore with 36% margins—yet commodity EBITDA collapsed to ₹3.5 crore from ₹31 crore, and management expects further overall profitability pressure in Q2 before a potential H2 recovery.
• 2024-02-15HoldHold: DCW’s Q3 operating backdrop remained weak, with revenue at Rs. 398 crore, down 4% QoQ and 32% YoY; specialty EBITDA was Rs. 32 crore, but commodity chemicals swung to an Rs. 8 crore loss. The bull case is the ramp-up of C-PVC and SIOP, while the key tension is that recovery depends on unproven stabilization in import-driven commodity pricing, and management provided no FY25 revenue or profit guidance.