DCW Ltd(DCW)

NSE: DCWBSE: 500117

₹ 39.13-4.93%refreshed 23 Oct, 03:30 pm ISTMarket cap: ₹ 1,155 crWebsite: www.dcwltd.comUpdated: 24 Oct 2026

About

DCW Ltd is an Indian chemicals manufacturer operating two segments - Basic Chemicals (PVC, caustic soda, soda ash) and Specialty Chemicals (CPVC, synthetic iron oxide pigments, synthetic rutile) - from plants in Tamil Nadu and Gujarat. In FY26 the company reported revenue of Rs 2,143.59 cr and EBITDA of Rs 240.66 cr. Specialty Chemicals, which contributed 27.6% of FY26 revenue, generates the bulk of profitability, while the company has completed a significant deleveraging cycle with gross debt reduced to Rs 276 cr by FY26 end.^[1][2][3]

Business segments

Basic Chemicals (PVC, caustic soda, soda ash): Rs 1,538.16 cr revenue, 71.8% of FY26 total; EBIT margin near zero at 0.0% in FY26.^[2]
Specialty Chemicals (CPVC, synthetic iron oxide pigments, synthetic rutile): Rs 592.34 cr revenue, 27.6% of FY26 total; EBIT margin 22.3% in FY26.^[2]
Specialty Chemicals EBITDA margin was 29.7% in FY26, contracting from 35.3% in FY25, driven by a ~22% YoY decline in CPVC net realisations with no commensurate PVC input price reduction.^[3]
Basic Chemicals EBITDA recovered to Rs 54 cr in FY26 from Rs 19 cr in FY25, with margin improving to 2.4% from breakeven, aided by higher fixed cost absorption and solar power savings.^[3]

Products and portfolio

CPVC (chlorinated polyvinyl chloride): produced at Sahupuram (Tamil Nadu); used in plumbing, fire sprinkler and industrial piping. DCW is backward-integrated, consuming captive PVC and chlorine.^[4][3]
Synthetic Iron Oxide Pigments (SIOP): produced at Sahupuram; portfolio includes red, black and orange grades with micronized grades planned for FY28.^[5][4]
Synthetic Rutile (SR): titanium feedstock exported primarily to Japan and other markets; positioned away from China spot via long-term contracts with traditional customers.^[6][5]
Basic Chemicals portfolio: PVC resin, caustic soda and soda ash, all manufactured at Sahupuram.^[3][4]

Installed capacity and utilisation

CPVC capacity: 50,000 TPA as of FY26 (expanded from 20,000 TPA); utilisation 122% in Q1 FY27, up from 85% in Q1 FY26.^[3][4]
SIOP capacity: ~30,000 TPA current; utilisation 90% in Q1 FY27 (up from 82% in Q1 FY26) and 86% in Q4 FY26.^[4][3]
PVC capacity utilisation: 91% in Q1 FY27 (down from 100% in Q1 FY26); caustic soda: 85% in Q1 FY27 (down from 88%); soda ash: 85% in Q1 FY27 (down from 97%).^[4]
Solar energy meets ~20% of total power consumption as of Q1 FY27; a captive power plant at Sahupuram is planned under the new capex programme to structurally lower costs.^[4]
Estimated renewable power savings of Rs 23 - 24 cr in FY26 after adjusting for coal price changes and volume effects; absolute power cost lower by Rs 7 - 8 cr despite higher volumes.^[3]

Key operating numbers

CPVC volume growth: +59% YoY in Q1 FY27; FY26 achieved highest-ever CPVC sales volumes, with production up ~60% YoY.^[4][3]
PVC volumes fell ~20% QoQ in Q1 FY27 due to VCM supply curtailment from West Asia force majeure and temporary suspension of PVC import duties.^[4]
SIOP realisation: ~INR 80,000 per tonne in Q1 FY27; SIOP volumes up ~3% YoY in Q1 FY27 and up 19% YoY in Q3 FY26.^[4][5]
PVC/CPVC spread: north of INR 25,000 per tonne in Q1 FY27.^[4]
Caustic soda realisation: ~$350 in Q4 FY26, rising to north of $400 in Q1 FY27, supported by Southeast Asian supply disruptions.^[3][4]
Specialty Chemicals EBITDA margin: 29.1% in Q1 FY27 (down from 33.6% in Q1 FY26); Basic Chemicals EBITDA margin: -5.2% in Q1 FY27 (down from 2.0% in Q1 FY26).^[4]

Customers and distribution

Synthetic Rutile is exported, with a shift toward long-term contracts with Japanese and other non-China customers to capture better pricing versus China spot market.^[6][5]
SIOP is sold to domestic and export markets; new black and orange pigment grades added in FY26 to broaden market reach.^[5]

Expansion and capex

INR 250 cr capex programme announced in Q1 FY27 over 2 - 3 years: SIOP Phase I adds 7,000 MT (30K to 37K TPA) by Q4 FY28; Phase II adds 8,000 MT post Phase I commissioning, taking total SIOP capacity to 45,000 TPA.^[4]
Captive power plant at Sahupuram included in the INR 250 cr programme, targeting structural reduction in power costs across both segments by Q4 FY28.^[4]
Micronized SIOP grades to be introduced during FY28 alongside Phase I commissioning to improve product mix, margins and addressable market.^[4]
Minimum incremental ROCE of 20% is the stated hurdle for all new growth investments.^[4]

Recent developments

Q1 FY27: Sudarshan Ganapathy appointed as CEO to lead DCW's transition from balance-sheet repair to growth phase.^[4]
Q1 FY27: Company migrated to new concessional tax regime (25.17% vs prior 34.9%), reducing net deferred tax liability by INR 34 cr.^[4]
FY26: Gross debt reduced by Rs 150 cr to Rs 276 cr; net debt stood at Rs 71 cr (0.3x net debt/EBITDA) at FY26 end - the lowest borrowing level in many years.^[3]
FY26: SAP S/4HANA migration completed; AI-based process optimisation piloted at soda ash plant with a Netherlands-based technology partner.^[3]
Legacy long-term debt targeted for full repayment during FY27; ~INR 135 cr of repayments scheduled, with new borrowings for SIOP capex expected to be a shade higher than repayments.^[4]

Market Cap

₹1,155 Cr

High / Low

₹72 / 37

Stock P/E

16.2

Price / Book

1.1

Book Value

₹36

EPS

₹1.6

No. of Shares

29.52 Cr

ROCE

9.6%

ROE

4.6%

OPM

6.3%

Debt / Equity

0.29

Sales

₹2,144 Cr

Net Profit

₹48 Cr

Promoter holding

45.6%

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DCW Ltd(DCW)

About

Business segments

Products and portfolio

Installed capacity and utilisation

Key operating numbers

Customers and distribution

Expansion and capex

Recent developments

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