DCW Limited FY26 Results: Net Profit Rises, Dividend Recommended
DCW Limited reported a 60.1% YoY increase in net profit to INR 482 Mn for FY26, with revenue growing 7.2% to INR 21,436 Mn. The company achieved record sales volumes in C-PVC, SIOP, and Synthetic Rutile, while significantly reducing gross debt by INR 1,500 Mn to INR 2,758 Mn. The Board recommended a final dividend of Rs. 0.20 per share and approved auditor re-appointments for FY 2026-27.
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DCW Limited reported its audited financial results for the fourth quarter and financial year ended March 31, 2026, as approved by its Board of Directors on May 5, 2026. The statutory auditors, M/s. V. Sankar Aiyar & Co., issued an unmodified audit opinion on the financial results. Following the announcement, the company held an earnings conference call with analysts and investors on May 6, 2026, at 02:00 P.M. IST to discuss the performance for the period. The audio recording of the conference call is available on the company’s website. Additionally, the company confirmed that extracts of the audited financial results were published in newspapers, specifically Business Standard (English) and Financial Express (Gujarati), on May 6, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Financial Performance: Full Year FY26
The company delivered a strong improvement in profitability for the full year. Revenue from operations rose to Rs. 2,14,358.57 lakhs in FY26 from Rs. 2,00,034.33 lakhs in FY25. Net profit for the year stood at Rs. 4,817.22 lakhs, compared to Rs. 3,007.16 lakhs in the prior year. Total comprehensive income for FY26 was Rs. 4,786.59 lakhs against Rs. 2,950.22 lakhs in FY25.
The following table summarises the key financial metrics for the full year:
| Metric: | FY26 (Audited) | FY25 (Audited) |
|---|---|---|
| Revenue from Operations: | Rs. 2,14,358.57 lakhs | Rs. 2,00,034.33 lakhs |
| Other Income: | Rs. 1,908.49 lakhs | Rs. 2,310.18 lakhs |
| Total Income: | Rs. 2,16,267.06 lakhs | Rs. 2,02,344.51 lakhs |
| Total Expenses: | Rs. 2,08,805.68 lakhs | Rs. 1,97,429.08 lakhs |
| Profit Before Tax: | Rs. 7,461.38 lakhs | Rs. 4,915.43 lakhs |
| Total Tax Expense: | Rs. 2,644.16 lakhs | Rs. 1,908.27 lakhs |
| Net Profit: | Rs. 4,817.22 lakhs | Rs. 3,007.16 lakhs |
| Total Comprehensive Income: | Rs. 4,786.59 lakhs | Rs. 2,950.22 lakhs |
| Basic EPS (Rs.): | 1.63 | 1.02 |
| Diluted EPS (Rs.): | 1.63 | 1.02 |
Q4 FY26 Quarterly Performance
For the quarter ended March 31, 2026, DCW Limited reported revenue from operations of Rs. 60,906.38 lakhs, compared to Rs. 53,790.73 lakhs in Q4 FY25 and Rs. 51,981.38 lakhs in Q3 FY26. EBITDA for Q4 FY26 stood at 646M rupees versus 557M rupees in Q4 FY25, with EBITDA margin improving to 10.6% from 10.36% year-on-year. Net profit for Q4 FY26 stood at Rs. 1,808.06 lakhs, against Rs. 1,126.25 lakhs in Q4 FY25 and Rs. 489.54 lakhs in Q3 FY26.
| Metric: | Q4 FY26 (Audited) | Q3 FY26 (Unaudited) | Q4 FY25 (Audited) |
|---|---|---|---|
| Revenue from Operations: | Rs. 60,906.38 lakhs | Rs. 51,981.38 lakhs | Rs. 53,790.73 lakhs |
| EBITDA: | 646M rupees | — | 557M rupees |
| EBITDA Margin: | 10.6% | — | 10.36% |
| Total Income: | Rs. 61,467.31 lakhs | Rs. 52,464.09 lakhs | Rs. 54,382.16 lakhs |
| Profit Before Tax: | Rs. 2,836.61 lakhs | Rs. 753.14 lakhs | Rs. 2,063.19 lakhs |
| Net Profit: | Rs. 1,808.06 lakhs | Rs. 489.54 lakhs | Rs. 1,126.25 lakhs |
| Basic EPS (Rs.): | 0.61 | 0.17 | 0.38 |
Operational Highlights and Capacity Utilization
During the year, the company achieved the highest-ever sales volumes in C-PVC, SIOP, and Synthetic Rutile. Production and sales volumes across all product segments increased on a year-on-year basis, except PVC, where higher volumes were utilized for captive consumption to support C-PVC production. The Basic Chemicals segment reported margin improvement to 2.4% from breakeven levels in the previous year, while Specialty Chemicals EBITDA de-grew by 5%, with margins at 29.7% down from 35.3%.
Gross debt stood at INR 2,758 Mn as compared to INR 4,258 Mn, reflecting a reduction of INR 1,500 Mn driven by scheduled repayments. The company did not avail any additional term borrowings during the year, with debt levels at a multi-year low. The company maintained a healthy cash position, including bank FDs, at INR 2,043 Mn, resulting in a closing net debt of INR 714 Mn.
Capacity utilization for key products in Q4 FY26 was robust, with C-PVC at 100%, SIOP at 83%, and PVC at 101%. For the full year FY26, capacity utilization was C-PVC at 102%, SIOP at 83%, and PVC at 100%.
Dividend and Corporate Actions
The Board of Directors recommended a final dividend of Rs. 0.20/- (Rupees Twenty Paise only), representing 10% on the face value of Rs. 2/- per equity share, for the financial year ended March 31, 2026. This dividend is subject to approval by shareholders at the ensuing Annual General Meeting. The Board also approved the re-appointments of M/s. PKF Sridhar & Santhanam LLP, Chartered Accountants, as Internal Auditors, M/s. R. Nanabhoy and Co., Mumbai, and M/s. N. D. Birla and Co., Ahmedabad, as Cost Auditors, all for FY 2026-27.
Historical Stock Returns for DCW
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.26% | +8.49% | +24.69% | -24.01% | -33.70% | +46.24% |
With CPVC Phase III capacity now expanded to 50,000 TPA, how quickly can DCW ramp up utilisation to recover the margin compression caused by the sharp fall in PVC-CPVC spreads, and what pricing environment is needed to restore Specialty Chemicals EBITDA margins toward the 35% levels seen in FY25?
Given that DCW's gross debt has fallen to a multi-year low with no new term borrowings in FY26, is the company evaluating any major capital expenditure or inorganic growth opportunities that could deploy its INR 2,043 Mn cash reserves in FY27?
How exposed is DCW's Basic Chemicals segment to potential dumping of Chinese PVC and Soda Ash into Indian markets, and could any escalation in global trade tensions further pressure realisations and erode the margin recovery achieved in FY26?
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