Dhabriya Polywood Limited delivered its strongest-ever quarterly profitability in Q1 FY27, reporting a consolidated profit after tax (PAT) of ₹8.86 crore, up 35.4% year-on-year from ₹6.54 crore. The Jaipur-based interior building material manufacturer also logged revenue from operations of ₹68.31 crore, a 10.0% increase compared to ₹62.09 crore in Q1 FY26. EBITDA surged 27.6% to ₹15.76 crore, with margins expanding by 317 basis points to 23.07% from 19.90% in the corresponding quarter.

The financial results, approved by the Board on August 12, 2026, reflect a decisive structural shift in the company’s product mix. Higher-value engineered solutions, particularly uPVC/PVC profiles, sheets, mouldings, windows, and doors, now account for 89.2% of gross turnover, up from 81.5% in Q1 FY26. This segment grew 20.0% year-on-year to ₹61.07 crore, with its segment margin improving from 17.9% to 20.4%. Conversely, the modular furniture segment saw revenue decline to ₹7.41 crore from ₹11.54 crore, though its margin improved slightly to 11.3% from 9.2%.

What the Numbers Show

The divergence between top-line growth and profit expansion highlights the efficacy of Dhabriya Polywood’s premiumisation strategy. While overall revenue grew by 10.0%, PAT grew by 35.4%, indicating significant operating leverage. This is further evidenced by the EBITDA margin expansion of 317 basis points, which outpaced the revenue growth rate. The data suggests that the company is successfully migrating away from commodity extrusion volumes towards specification-led solutions that command higher realisations and are less exposed to short-term raw material volatility.

Beyond immediate financials, the company’s forward indicators point to sustained visibility. The order book for its project-related business stands at an all-time high of over ₹200 crore. Recent wins include an ₹18.59 crore aluminium doors and windows order in July 2026 and a ₹15.17 crore aluminium order in June 2026. Additionally, the subsidiary Dynasty Modular Furniture secured a ₹13.05 crore modular kitchen order.

Dhabriya Polywood is executing a ₹100 crore capital expenditure programme spanning FY26 to FY28. This investment covers the modernization of extrusion capacity, new wood-plastic composite (WPC) doors and panel lines, and an aluminium windows and façade facility in Jaipur. The company’s extrusion capacity has been upgraded to 27,600 MTPA from 24,000 MTPA in FY26.

Credit rating agency CRISIL upgraded the company’s bank facilities to BBB+/Stable in July 2026, reflecting improved financial health. Interest coverage ratio strengthened to 9.24 times from 7.33 times in Q1 FY26. The effective tax rate decreased marginally to 25.54% from 26.06% in the prior year period.

Historical Financial Performance

The investor presentation revealed consistent long-term growth trends. Over the past three fiscal years, revenue has grown from ₹21,163.3 lakh in FY24 to ₹26,447.9 lakh in FY26. Correspondingly, EBITDA margins have expanded from 14.7% in FY24 to 20.6% in FY26, reaching 23.1% in Q1 FY27. Profit after tax has similarly risen from ₹1,408.2 lakh in FY24 to ₹3,014.0 lakh in FY26.

Return on capital employed (ROCE) improved from 18.9% in FY24 to 25.7% in FY26, while return on equity (ROE) rose from 18.6% to 26.3% over the same period. Working capital turnover remained stable at five times in both FY25 and FY26, down from seven times in FY24.

Dhabriya Polywood Limited reported a consolidated net profit of ₹885.81 lakh for the quarter ended June 30, 2026, marking a 35% year-on-year increase from ₹654.02 lakh in Q1FY25. The growth was driven by a 10% rise in revenue from operations to ₹6,831.44 lakh, reflecting robust demand in its core plastic products segment. This performance signals sustained operational momentum as the company enters FY26.

The Board of Directors approved the unaudited standalone and consolidated financial results on August 12, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by the Audit Committee and subsequently approved by the Board. Additionally, the Board approved the draft Director’s Report and notice for the 34th Annual General Meeting, with the date to be communicated in due course.

Consolidated Financial Performance

Consolidated revenue from operations stood at ₹6,831.44 lakh, up from ₹6,209.07 lakh in Q1FY25. Other income remained stable at ₹12.86 lakh compared to ₹13.58 lakh previously. Total expenses increased to ₹5,654.67 lakh from ₹5,338.18 lakh, primarily due to higher cost of materials consumed (₹3,236.89 lakh vs ₹3,054.80 lakh) and employee benefits expenses (₹1,095.70 lakh vs ₹949.69 lakh). Finance costs rose marginally to ₹142.84 lakh from ₹137.49 lakh.

Standalone net profit rose 31% YoY to ₹303.58 lakh from ₹231.62 lakh. Standalone revenue from operations grew 9% to ₹3,757.24 lakh from ₹3,442.37 lakh. Basic earnings per share (EPS) for the quarter stood at ₹8.18, up from ₹6.04 in the previous year.

Segment Analysis

The Plastic Products segment, which includes manufacturing and sales of uPVC/PVC profiles, sheets, mouldings, windows, and doors, generated ₹6,107.02 lakh in segment revenue, a 20% increase from ₹5,088.65 lakh. Segment profit for this division surged 37% to ₹1,247.73 lakh from ₹912.13 lakh. In contrast, the Modular Furniture segment saw revenue decline 36% to ₹741.35 lakh from ₹1,153.65 lakh, with segment profit dropping to ₹83.62 lakh from ₹105.56 lakh.

What the Numbers Show

The divergence between the two segments highlights Dhabriya Polywood’s reliance on its core plastic products business. While the modular furniture unit contracted significantly, the plastic products segment more than compensated with double-digit growth in both revenue and profitability. The company’s total assets expanded to ₹26,893.06 lakh from ₹19,802.69 lakh year-on-year, indicating continued investment in capacity or working capital to support the high-growth plastic products line.

Narendra Sharma & Co., Chartered Accountants, conducted the limited review of the financial statements in accordance with Standard on Review Engagements (SRE) 2410. The auditors noted that nothing came to their attention to cause them to believe the statements contained material misstatements. The company reported no investor complaints pending as of June 30, 2026.