Key Quantitative Figures - Q4 FY26 Performance

  • Revenue: ₹1,314 crores, up 12% YoY from ₹1,172 crores in Q4 FY25
  • EBITDA: ₹332 crores, nearly doubled from ₹171 crores in Q4 FY25
  • EBITDA Margin: 25.3% (up significantly from 14.6% in Q4 FY25)
  • Profit Before Tax: ₹334 crores, up 65% from ₹203 crores in Q4 FY25
  • EBIT: ₹306 crores, up from ₹144 crores in Q4 FY25
  • Sales Volume: 101,772 metric tons, broadly flat YoY (102,253 tons in Q4 FY25)
  • Inventory Gain: ₹35-40 crores (disclosed as resulting from PVC price increases)

Key Quantitative Figures - Full Year FY26 Performance

  • Revenue: ₹4,113 crores, broadly flat YoY (₹4,142 crores in FY25)
  • EBITDA: ₹679 crores, up 43% YoY
  • EBIT: ₹572 crores, up 55% YoY
  • Sales Volume: 332,736 metric tons, down from 347,982 metric tons in FY25
  • Net Cash Position: ₹2,563 crores

Product Mix and Capacity Details

  • Agri vs. Non-Agri Mix: FY26 agri share at 63% (down from 67% in FY25)
  • CPVC Share: 7-8% of total volume in Q4 FY26 (6-7% in Q4 FY25)
  • Fittings Share: 9% of total volume in Q4 FY26 (9% in Q4 FY25); 11% for full year FY26 (10% in FY25)
  • Total Capacity: 520,000 metric tons
  • Capacity Utilization: 67% in FY26 (71% in FY25)

Market and Operational Commentary

  • Demand Environment: Q4 agri demand was subdued due to price volatility and farmer anticipation of price softening. April 2026 was subdued due to falling prices, while May showed slight improvement.
  • Geopolitical Impact: Middle East conflict has created supply chain disruptions and PVC price volatility, particularly affecting VCM sourcing from the region.
  • Procurement Strategy: Company maintains optimal inventory levels based on market opportunities and has a backward integration advantage in PVC resin manufacturing.
  • Government Policy: 90-day import duty on PVC resin from April to June 30, 2026 has impacted pricing dynamics.

Guidance and Outlook

  • EBITDA Margin Guidance: Sub-15% for FY27 (conservative due to geopolitical uncertainty)
  • Volume Growth Target: Higher single digit to lower double digit for FY27
  • Product Mix Target: Aiming for 50-50 agri to non-agri split over next 4-5 years
  • Capex Plan: ₹100-200 crores annually for maintenance and debottlenecking

Capital Allocation

  • Dividend: FY26 dividend of ₹2.75 per share (following ₹3.60 per share in FY25)
  • Cash Utilization: No specific guidance on additional cash returns; Board to decide on utilization of accumulated cash

Raw Material Price Context

  • Q4 PVC/EDC Spread: $521 average
  • Q4 International PVC Price: $793 average
  • Current PVC/EDC Spread: $543
  • Current International PVC Price: $900+
  • Current PVC/VCM Spread: $108 (vs. Q4 average of $179)

Participants

Management: Mr. Udipt Agarwal (Managing Director), Mr. Chandan Verma (CFO)

Moderator: Mr. Arun Baid (ICICI Securities Limited)

Analysts: Representatives from Nuvama, SJ Investment, Dolat Capital, PL Capital, Molecule Ventures, Anand Rathi, Nayan M Vala Securities, Sumangal Investment