Dynasty Modular Furnitures, a wholly owned subsidiary of Dhabriya Polywood , has secured a work order worth ₹13.05 crore from M3M Group for modular kitchen works. The project is scheduled to be executed over a period of 18 months in various tranches as per the terms of the order. This development was disclosed to the stock exchanges under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The order value of ₹13.05 crore is inclusive of GST. M3M Group, a domestic entity, awarded the contract for modular kitchen works. The disclosure confirms that the promoter, promoter group, or group companies do not hold any interest in the entity awarding the order. Furthermore, the transaction does not fall within related party transactions.

Order Details

The subsidiary, Dynasty Modular Furnitures Pvt. Ltd., received the Letter of Intent (LOI) for the project. The execution timeline spans 18 months, with completion expected in various phases. The order is strictly for modular kitchen works and does not involve any arm's length transaction considerations.

Dhabriya Polywood Limited reported a 67.2% increase in net profit to ₹30.14 crore for the fiscal year ended March 31, 2026 (FY26), driven by significant margin expansion and a shift toward value-added products. Revenue grew 12.5% year-on-year to ₹264.48 crore, while EBITDA surged 45.6% to ₹54.60 crore, expanding margins by 460 basis points to 20.6%. The management disclosed these figures during an investor interaction organized by Hem Securities Limited on June 17, 2026.

Financial Performance and Growth

The company’s profitability improved substantially, with the net profit margin reaching 11.4% for FY26. Return ratios also strengthened, with Return on Capital Employed (ROCE) standing at 25.7% and Return on Equity (ROE) at 26.3%. Over the last five years (FY21–FY26), the company has multiplied its revenue 2.4 times and its Profit After Tax (PAT) 7.5 times, indicating a long-term growth trajectory.

Operational and Segment Overview

Dhabriya Polywood operates six manufacturing units across Jaipur, Bangalore, and Coimbatore, covering 5.4 lakh square feet. The current extrusion capacity is 27,600 metric tonnes per annum, supported by a fabrication capacity of 30 lakh square feet. The company serves a pan-India network of over 800 dealers and distributors and holds 15 design patents.

The B2B segment contributes 55%–60% of total revenue, primarily through the PVC profile business. The project business accounts for approximately 30% of revenue, with an unexecuted order book of ₹174 crore. Value-added products, such as fluted and soffit panels, contributed ₹45 crore to PVC profile revenue in FY26. Additionally, the company has ventured into aluminum windows, facades, and glazing, with a dedicated facility operational in Bangalore.

Strategic Outlook for FY27

Management has outlined a strategic roadmap for FY27, targeting a top-line growth of 25%–30% to achieve revenue between ₹330 crore and ₹350 crore. To support this expansion, the company has committed a capital expenditure of ₹30–40 crore for upgrading existing product lines and establishing new manufacturing facilities. Key initiatives include the commercial launch of WPC (Wood Plastic Composite) doors in Q2 FY27 and the implementation of the aluminum facade division at the Jaipur facility in the current financial year.

Risk Factors and Working Capital

The company addressed risks related to raw material volatility, particularly PVC resin prices linked to crude oil. Management employs price pass-through mechanisms in B2B and links aluminum orders to NALCO base prices to protect margins. Towards the end of FY26, the company increased short-term borrowings to build inventory and mitigate supply chain disruptions caused by geopolitical tensions. Other risks include environmental restrictions in the NCR and competition from regional players and Chinese imports.