Ddev Plastiks Q1 FY27: PAT +22% YoY, margins compress on new capex finance costs

Ddev Plastiks' standalone Q1 FY27 (quarter ended June 30, 2026) revenue from operations rose 28.6% YoY to ₹989.5 Cr (₹769.2 Cr in Q1 FY26) and 29.2% QoQ (₹765.7 Cr in Q4 FY26), extending a run of double-digit growth. Net profit grew 22.3% YoY to ₹63.8 Cr (₹52.2 Cr) and 17.0% QoQ (₹54.5 Cr), with basic EPS at ₹6.16 versus ₹5.04 a year ago and ₹5.27 in the March quarter. Profit growth trailed revenue growth on both counts, and margins compressed: net margin (PAT/total income) was 6.39%, down from 6.72% YoY and 7.01% QoQ, while operating margin (PBT+finance cost+depreciation−other income, over revenue) slipped to about 9.2% from 9.48% YoY and 9.70% QoQ.

The squeeze sits mainly on the finance-cost line: interest costs more than doubled YoY to ₹11.06 Cr (₹5.52 Cr) and rose 35.6% QoQ (₹8.15 Cr), consistent with debt funding the new Bhiwadi, Rajasthan facility, which the company capitalised on commencing commercial production on April 28, 2026 (Note 3), adding 48,000 MTPA and taking installed capacity above 315,000 TPA. Cost of materials consumed grew 31.7% YoY, marginally ahead of the 28.6% revenue growth, pointing to input-cost pressure or mix rather than a step-change in operating profitability. Employee costs (+10.9% YoY) and depreciation (+15.9% YoY) rose more moderately. There were no exceptional or extraordinary items in either the current or comparative periods, so the 22.3% YoY PAT growth is a clean, unadjusted figure.

The stock went into the print at ₹292, up 2.9% over the past month of trading.

For context: this is the highest quarterly PAT in the last 6 quarters on our records; PAT has now risen for 3 consecutive quarters; revenue is at a 6-quarter high.

PBT ₹85.0 Cr, +21.9% YoY (₹69.8 Cr) — tax outgo ₹21.2 Cr (~25% effective rate), broadly stable vs ~25% in both comparative quarters.

Management's FY27 guidance from the Q4 FY26 call called for 13% full-year revenue growth and ~11% EBITDA margin in the core polymer-compounding business; Q1's 28.6% YoY revenue growth runs well ahead of that annual pace, but the ~9.2-10.2% margin (depending on whether other income is netted) trails the ~11% target, leaving margin recovery as the item to watch through the year. No reliable street/consensus estimate could be confirmed for this quarter — a screener-sourced forecast (~₹667 Cr revenue, EPS ₹4.20) surfaced in search results but could not be attributed to a named brokerage or verified as specific to Q1 FY27, so it has not been used as a comparison. No management press release/commentary was available in the record to quote against these numbers. The company remains a single-segment, standalone entity with no subsidiary, associate or JV this quarter (Note 4), so these financials carry no contribution yet from the BESS business, whose FY27 revenue target is ₹200-250 Cr; the board this meeting also approved relocating the BESS project to Kolkata and appointed Rajni Mishra as an additional independent director.