DCW Q2 FY27 results: net profit down 25.0% to ₹10.36 crore, revenue up 22.9%

How did DCW perform in Q2 FY27?

DCW reported standalone revenue of ₹662.86 crore in Q2 FY27, up ₹123.65 crore or 22.9% from ₹539.21 crore in Q2 FY26. EBITDA was ₹47.46 crore, down ₹10.56 crore or 18.2%, and the EBITDA margin fell 3.6 percentage points to 7.2% from 10.8%.

Against Q1 FY27, revenue rose ₹120.95 crore or 22.3% to ₹662.86 crore, while EBITDA increased ₹11.70 crore or 32.7% to ₹47.46 crore. The margin improved 0.6 percentage points to 7.2% from 6.6%.

Profit before tax was ₹14.02 crore in Q2 FY27, down ₹7.03 crore or 33.4% from Q2 FY26 but up ₹13.66 crore from Q1 FY27. Net profit fell ₹24.19 crore or 70.0% from Q1 FY27 to ₹10.36 crore, and basic EPS fell ₹0.82 or 70.1% to ₹0.35. The quarter figures are standalone.

What changed in DCW's costs and profit?

Total expenses were ₹655.95 crore in Q2 FY27, up ₹133.17 crore or 25.5% from Q2 FY26, outpacing revenue growth. Cost of materials rose ₹58.56 crore or 21.8% to ₹327.26 crore, while other expenses increased ₹29.19 crore or 20.3% to ₹173.33 crore.

Employee cost was ₹45.53 crore, up ₹2.48 crore or 5.8% from the year-ago quarter. Finance costs fell ₹1.94 crore or 12.5% to ₹13.60 crore, while depreciation increased ₹0.90 crore or 3.5% to ₹26.95 crore. Other income rose ₹2.50 crore or 54.1% to ₹7.12 crore, and there was no exceptional item.

Tax expense was ₹3.66 crore, down ₹3.58 crore or 49.4% from Q2 FY26. Profit before tax nevertheless fell to ₹14.02 crore from ₹21.05 crore because the increase in total expenses was higher than the increase in other income.

The company’s investor presentation said revenue growth was driven by 31.5% growth in Speciality Chemicals and 19.9% growth in Basic Chemicals. It attributed Speciality Chemicals growth to higher CPVC volumes after capacity expansion, while higher Caustic Soda and Synthetic Rutile volumes and improved PVC realisations supported Basic Chemicals.

How did the first half of FY27 go?

For H1 FY27, standalone revenue was ₹1,204.77 crore, up ₹190.06 crore or 18.7% from ₹1,014.71 crore in H1 FY26. Total income increased ₹194.18 crore or 19.0% to ₹1,217.54 crore from ₹1,023.36 crore.

Profit before tax fell ₹24.34 crore or 62.9% to ₹14.38 crore from ₹38.72 crore, while net profit rose ₹19.71 crore or 78.2% to ₹44.91 crore from ₹25.20 crore. Basic EPS increased ₹0.67 or 78.8% to ₹1.52 from ₹0.85.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹2,211.94 crore, up from ₹2,089.32 crore at 31 March 2026, and total equity was ₹1,119.72 crore against ₹1,074.81 crore. Borrowings rose to ₹322.84 crore from ₹310.03 crore, while cash increased to ₹9.50 crore from ₹4.94 crore.

Inventories declined to ₹273.73 crore from ₹309.39 crore at the previous balance-sheet date. Trade receivables rose to ₹194.83 crore from ₹142.0 crore, while trade payables increased to ₹491.9 crore from ₹390.95 crore.

H1 FY27 operating cash flow was ₹106.1 crore, compared with ₹130.08 crore in H1 FY26. Investing cash flow was an outflow of ₹119.25 crore against an outflow of ₹32.56 crore, financing cash flow was ₹0.6 crore against an outflow of ₹93.17 crore, and capital expenditure was ₹42.17 crore against ₹54.76 crore.

How has DCW done over the last 8 quarters?

Revenue has risen year on year in each of the last five quarters. It reached ₹662.86 crore in Q2 FY27, the highest in the reported series, compared with the low of ₹474.17 crore in Q3 FY25.

Profit was volatile over the same period. It peaked at ₹34.55 crore in Q1 FY27 before falling to ₹10.36 crore in Q2 FY27, while the earlier low was ₹4.9 crore in Q3 FY26.

The EBITDA margin reached its high of 12.0% in Q3 FY25 and its low of 6.6% in Q1 FY27. It recovered to 7.2% in Q2 FY27 but remained below the 10.8% recorded in Q2 FY26.

Which businesses drove the quarter?

Basic Chemicals reported revenue of ₹473.0 crore in Q2 FY27, up 19.9% from ₹394.55 crore in the year-ago quarter. Segment EBIT was ₹5.49 crore, compared with ₹0.37 crore in Q2 FY26, while the reported EBIT margin was 1.2%.

Speciality Chemicals reported revenue of ₹184.39 crore, up 31.5% from ₹140.2 crore. Segment EBIT fell to ₹18.8 crore from ₹33.87 crore, with a reported EBIT margin of 10.2%. The company attributed revenue growth to higher CPVC volumes following capacity expansion.

Others reported revenue of ₹5.48 crore and EBIT of ₹3.33 crore, with a reported EBIT margin of 60.8%. The investor presentation said Sequential revenue growth in Speciality Chemicals was 4.2% and in Basic Chemicals was 31.1%.

What else did the company announce?

On 29 October 2026, the board approved DCW’s unaudited financial statements for the quarter and half year ended 30 September 2026. It also approved an open-market buyback of fully paid-up equity shares from shareholders other than promoters and the promoter group, subject to applicable SEBI regulations.

The maximum buyback size is ₹40 crore, payable in cash at a maximum price of ₹58 per share. At the maximum price and size, the indicative maximum is 68,96,551 equity shares, and the company must use at least 75% of the maximum size, or ₹30 crore. The board constituted a Buyback Committee to implement the proposal.

The same-day investor presentation reported Q2 revenue growth of 22.9% and an EBITDA margin of 7.17%. The board meeting ran from 12:00 noon to 4:00 p.m. No dividend or appointment was stated in the same-day filings provided.

What did the auditors point out?

The limited review report included an Emphasis of Matter concerning Note 4 to the unaudited financial results for the quarter and half year ended 30 September 2026. The auditors drew attention to uncertainty related to petitions and appeals filed by the company involving an electricity tax demand of Rs. 5,491.45 lakhs on captive power generated and other matters during 2003 to 2020.

The auditors also drew attention to a differential customs duty demand of Rs. 1,243.77 lakhs, applicable interest, and a redemption fine and penalty of Rs. 2,600 lacs relating to coal imports in earlier years. The excerpt says the company has been legally advised that it has a fair chance of success. The provided auditor signal identifies an emphasis of matter, not a qualified opinion or going-concern qualification.

What did DCW's management say?

Management expected H2 FY27 to be significantly stronger than H1 and expressed confidence in a double-digit EBITDA margin for the second half. Satwik Jain, President of DCW Limited, said: “Looking ahead, external volatility remains a reality, but based on current visibility, we expect the second half of FY27 to be significantly stronger than the first.”

Management said FY27 finance costs were expected to decline 9–10% versus FY26. Pradip Thumukherjee, CFO of DCW Limited, said: “The company expects to conclude this fiscal year with a nine to ten percent reduction in interest cost.”

The ₹250 crore growth-capex programme for pigments expansion and captive-power optimisation was described as under way, with previously communicated timelines intact. Management said expanded SIOP capacity was expected on board in Q4 FY28, followed by a gradual utilisation ramp over about six months.

How did DCW shares react?

DCW’s shares were down 0.3% from the previous close on the reaction day, after the after-market filing. The stock was down 0.7% after five minutes, 0.5% after 15 minutes and 0.9% after 30 minutes from the price when the filing appeared.

By the next day’s close, the stock was down 4.0% from its pre-results close. The petrochemicals industry median was down 2.4% on the reaction day and 0.8% by the next day’s close, while the Nifty Microcap 250 was down 2.5% and 1.1%, respectively.

Past reaction-day moves were mixed: 4.6% lower on 13 August 2026, 4.5% higher on 5 May 2026, 3.7% higher on 10 February 2026 and 7.1% higher on 4 November 2025. Earlier moves included 0.7% higher on 8 August 2025, 1.9% higher on 12 May 2025, 1.7% lower on 13 February 2025 and 6.3% lower on 13 November 2024.