DCW LimitedQ2 FY27 Results & Financial Update
DCW Limited: Q2 FY27 standalone results and company financials – revenue ₹662.86 Cr, PAT ₹10.36 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
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Quarter overview
Quarterly earnings analysis
DCW Limited reported revenue from operations of INR 662.86 crore (INR 6,628.58 million) for the second quarter ended September 30, 2026, marking a 22.32% sequential expansion compared to INR 541.91 crore recorded in the preceding first quarter of FY27.
Total income for Q2 FY27 stood at INR 669.98 crore, supported by other income of INR 7.12 crore. Total expenses for the quarter rose to INR 655.95 crore from INR 547.20 crore in Q1 FY27, driven by higher cost of materials consumed and changes in inventories of finished goods.
Profit before tax (PBT) for the quarter improved significantly to INR 14.02 crore compared to INR 0.36 crore in the first quarter of FY27, reflecting a recovery in basic chemical profitability and higher sequential volumes.
Net profit after tax (PAT) for Q2 FY27 came in at INR 10.36 crore, down from INR 34.55 crore in Q1 FY27. The sequential decline in net profit despite higher operating profit was driven by tax adjustments, including a net deferred tax gain of INR 34.28 crore recognized in the prior quarter following the company's transition to the new concessional tax regime under the Income Tax Act.
Segmentally, Basic Chemicals revenue rose to INR 473.00 crore in Q2 FY27 from INR 360.92 crore in Q1 FY27, with segment results turning positive at INR 5.49 crore compared to a loss of INR 27.68 crore in the previous quarter.
Specialty Chemicals revenue increased moderately to INR 184.39 crore during the quarter from INR 176.99 crore in Q1 FY27, while Specialty segment profit before interest and tax stood at INR 18.80 crore compared to INR 40.54 crore in the preceding quarter due to pricing and freight pressures.
01 · Business model
What does DCW do?
DCW Limited is a multi-product chemical manufacturer with operations spanning basic and specialty chemicals across two state-of-the-art integrated manufacturing facilities located in Dhrangadhra, Gujarat, and Sahupuram, Tamil Nadu.
The company's product portfolio is divided into basic chemicals—such as soda ash, caustic soda, and polyvinyl chloride (PVC)—and specialty chemicals, including chlorinated polyvinyl chloride (C-PVC) and synthetic iron oxide pigments (SIOP), alongside various intermediate chemicals like synthetic rutile and hydrochloric acid.
DCW operates a 58 MW co-generation captive power plant at its Sahupuram complex to ensure uninterrupted and cost-effective power supply, alongside a solar park facility that covers a portion of its electricity requirements.
The company maintains an extensive distribution network serving domestic and international customers across more than 14 countries, including the USA, Europe, Japan, Malaysia, and the Netherlands.
02 · Historical context
What shaped the business before this quarter
Incorporated in 1939 as Dhrangadhra Chemical Works at Dhrangadhra, Gujarat, the company established India's first Soda Ash plant.
Commissioned the chlor-alkali plant at Sahupuram in Tamil Nadu in 1959, establishing an integrated manufacturing base over subsequent decades.
Entered into technical license and support agreements with international partners in 2010 and subsequently commissioned synthetic iron oxide pigment and C-PVC manufacturing units to shift focus toward high-margin specialty chemicals.
03 · Financial snapshot
Current quarter vs the available comparable
| Metric | Q2 FY27 | Previous quarter |
|---|---|---|
| Revenue from operations | ₹662.86 Cr | ₹541.91 Cr |
| Total income | ₹669.98 Cr | ₹547.56 Cr |
| Profit before tax | ₹14.02 Cr | ₹0.36 Cr |
| Profit after tax | ₹10.36 Cr | ₹34.55 Cr |
| EPS | ₹0.35 | ₹1.17 |
04 · Why it moved
Why the quarter looked the way it did
What drove revenue
Basic chemicals revenue expanded sequentially to INR 472.99 crore in Q2 FY27 from INR 360.92 crore in Q1 FY27, driven by higher volumes and net realisations in caustic soda and synthetic rutile, alongside improved PVC realisations.
Specialty chemicals revenue grew to INR 184.39 crore in Q2 FY27 compared to INR 176.99 crore in Q1 FY27, supported by higher C-PVC and SIOP volumes following prior capacity expansions.
Soda ash capacity utilization declined to 68% in Q2 FY27 from 91% in Q1 FY27 due to flood-related plant disruptions affecting operational output.
What drove margins
Basic chemicals segment results turned positive to INR 5.49 crore in Q2 FY27 from a loss of INR 27.68 crore in Q1 FY27, aided by the normalization of VCM-PVC spreads and higher synthetic rutile volumes.
Specialty chemicals segment profit moderated to INR 18.80 crore in Q2 FY27 from INR 40.54 crore in Q1 FY27, pressured by steep C-PVC price erosion and elevated ocean freight costs for North American exports.
Power and fuel expenses stood at INR 95.66 crore in Q2 FY27 compared to INR 92.25 crore in Q1 FY27, reflecting energy requirements across the integrated manufacturing units.
05 · Demand, customers & order book
Where demand is coming from
Supplies basic and specialty chemicals to over 100 recurring customers across more than 15 end-user industries, including pipe manufacturers, water treatment, and pigments.
06 · Segments, products & geography
Which parts of the business are doing the work
Segments and products
Generated gross revenue of INR 472.99 crore in Q2 FY27, accounting for the majority of top-line performance, with segment assets at INR 9,851.24 crore as of September 30, 2026.
Contributed gross revenue of INR 184.39 crore in Q2 FY27, with segment assets totaling INR 8,478.75 crore as of September 30, 2026.
07 · Capacity, projects & execution
What is being built, commissioned or delivered
Capacity, production and utilisation
During Q2 FY27, capacity utilization rates were reported at 86% for C-PVC, 84% for SIOP, 88% for caustic soda, 103% for PVC, and 68% for soda ash.
Following recent expansions, total C-PVC manufacturing capacity stands at 50,000 metric tonnes.
Projects, capex and execution
Planned capacity enhancement of 7,000 MT under Phase I of the SIOP expansion, scheduled for capitalization by Q4 FY28, with total project capex for both phases estimated at INR 250 crore over 2-3 years.
Investing in power plant efficiency improvements at the Sahupuram facility to reduce energy costs, with capitalisation targeted by Q4 FY28.
08 · Strategy & new businesses
How the company is trying to change its growth mix
Continued strategic shift toward high-value specialty chemical products such as C-PVC and SIOP to enhance overall realization and margin profile.
09 · Reported developments
What changed operationally
The Board of Directors approved a proposal on October 29, 2026, to buy back fully paid-up equity shares worth up to INR 40 crore through the open market route at a price not exceeding INR 58 per equity share.
Basic chemicals segment returned to profitability in Q2 FY27, driven by higher volumes and better realisations across caustic soda and synthetic rutile.
10 · Pressure points & risks
What is not going smoothly
Soda ash production capacity utilization dropped to 68% during Q2 FY27 due to flood-related plant disruptions.
11 · Items worth noticing
The line items that can distort a quick read
The company transitioned to the new concessional tax regime under the Income Tax Act effective April 1, 2026, resulting in the re-measurement of deferred tax liabilities and assets with a net gain of INR 34.28 crore recognized in Q1 FY27.
Auditors noted ongoing legal and tax matters, including a Tamil Nadu electricity tax demand of INR 54.91 crore, customs differential duty of INR 12.43 crore, and income tax search-related adjustments, against which no provisions have been made as management considers them tenable.
12 · Cash flow & balance sheet
Profit is one thing. Cash and funding tell another part of the story.
Net cash flow from operating activities for the half year ended September 30, 2026, was INR 106.10 crore, compared to INR 130.08 crore in the corresponding previous period.
Trade receivables stood at INR 1,948.32 lakh as of September 30, 2026, while inventories stood at INR 2,737.27 lakh.
Capital allocation & funding
Non-current borrowings stood at INR 182.87 crore and current borrowings at INR 139.97 crore as of September 30, 2026.
Finance costs for Q2 FY27 were INR 13.60 crore, reflecting scheduled term loan repayments and lower net debt levels.
13 · Beyond the numbers
What changed beyond the numbers
Statutory Auditor Review
Statutory auditors V. Sankar Aiyar & Co. issued an unmodified review report on the standalone financial results for the quarter ended September 30, 2026, with emphasis of matters regarding pending tax and legal disputes.
14 · Previous-quarter changes
What changed since the previous quarter
PBT improved from INR 0.36 crore in Q1 FY27 to INR 14.02 crore in Q2 FY27, supported by basic chemicals operational recovery.
15 · Key Q&A
The quarter, answered directly
What does DCW do?
DCW Limited is a multi-product chemical manufacturer with operations spanning basic and specialty chemicals across two state-of-the-art integrated manufacturing facilities located in Dhrangadhra, Gujarat, and Sahupuram, Tamil Nadu.
What is the clearest takeaway from Q2 FY27?
DCW Limited reported revenue from operations of INR 662.86 crore (INR 6,628.58 million) for the second quarter ended September 30, 2026, marking a 22.32% sequential expansion compared to INR 541.91 crore recorded in the preceding first quarter of FY27.
What drove revenue or demand?
Basic chemicals revenue expanded sequentially to INR 472.99 crore in Q2 FY27 from INR 360.92 crore in Q1 FY27, driven by higher volumes and net realisations in caustic soda and synthetic rutile, alongside improved PVC realisations.
What mattered most for margins or profitability?
Basic chemicals segment results turned positive to INR 5.49 crore in Q2 FY27 from a loss of INR 27.68 crore in Q1 FY27, aided by the normalization of VCM-PVC spreads and higher synthetic rutile volumes.
What changed operationally beyond the headline numbers?
During Q2 FY27, capacity utilization rates were reported at 86% for C-PVC, 84% for SIOP, 88% for caustic soda, 103% for PVC, and 68% for soda ash.
What are the main pressure points disclosed for the quarter?
Soda ash production capacity utilization dropped to 68% during Q2 FY27 due to flood-related plant disruptions.
16 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
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17 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
SIOP Phase I Execution: Monitor the progress and scheduled Q4 FY28 capitalization of the 7,000 MT SIOP expansion project.
- 02
Buyback Implementation: Track the execution and completion of the open market share buyback program up to INR 40 crore.
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