DCW reports strong Q2, H1 earnings on capacity expansion

DCW Limited reported an operational income of INR 5,392 Mn for Q2-FY26, a 10.3% year-over-year increase, with EBITDA at INR 581 Mn, up 64.1% year-over-year. The company achieved a PAT of INR 138 Mn in Q2-FY26, a significant improvement from a loss in the prior year. For H1-FY26, operational income reached INR 10,147 Mn, a 2.7% increase, with EBITDA at INR 1,118 Mn, up 38.7% year-over-year. PAT for H1-FY26 stood at INR 252 Mn, reflecting a substantial recovery.

A key highlight was the commissioning of the CPVC capacity expansion from 20 KTPA to 40 KTPA on July 22, 2025, ahead of schedule. This new capacity was immediately utilized, leading to record-high CPVC sales despite a 15% price erosion. SIOP sales remained stable, with 60% of volumes going to the USA, benefiting from exclusion from US tariffs. The company's gross debt reduced by INR 610 Mn, resulting in a net debt of INR 1,554 Mn, the lowest in 19 years.

The company's investment in a 44.5MW group captive power project was completed on April 3, 2025, substituting 25% of power requirements at Sahupuram. DCW also saw an improved order pipeline for Synthetic Rutile, expected to reduce inventory levels.