DDev Plastiks: profit falls 18.55% as costs outpace revenue
Operating margin fell 1.05 percentage points to 8.17%; management highlighted Rs 572 crore of exports in first-half revenue of Rs 1,968 crore.
Filed 12 Nov 2026, 18:25 IST · after market close · DDev Plastiks Industries Ltd (DDEVPLSTIK)
Key takeaways
- Standalone net profit fell 18.55% QoQ as revenue slipped 1.12% while expenses rose 0.02%.
- Operating margin narrowed 1.05 percentage points to 8.17% QoQ, leaving DDev 4.23 percentage points below the 147-peer Commodities median.
- Other income supplied 9.06% of pre-tax profit, while interest expense rose 4.07% QoQ.
Price around the results
Sequential earnings contraction in Q2FY27
DDev Plastiks reported standalone revenue of Rs 978.36 cr, down 1.12% QoQ, while expenses were broadly unchanged at a 0.02% increase. The mismatch cut operating profit by 12.35% and net profit by 18.55% to Rs 51.96 cr. EPS fell 18.51% to Rs 5.02.
Costs and finance charges squeezed margins
Expenses grew faster than revenue, narrowing operating margin by 1.05 percentage points to 8.17%. Interest expense rose 4.07% and depreciation increased 6.26%, adding pressure below the operating line. Other income accounted for 9.06% of pre-tax profit, so reported earnings also included a meaningful non-operating contribution; the tax rate rose 0.42 percentage points.
Margin trails 147 Commodities peers
DDev's operating margin was 4.23 percentage points below the 12.4% median among 147 Commodities companies that had reported the same quarter. The margin also declined from 9.22% in Q1FY27, marking a sequential deterioration across the two quarters shown.
Management points to exports and capacity investment
Management said demand for polymer compounds remains supported by wires and cables, infrastructure, construction, industrial projects and power. The presentation said first-half revenue from operations grew 36% year on year to Rs 1,968 crore, with exports contributing Rs 572 crore. The company said it had incurred Rs 79.22 crore for XLPE capacity completed in April 2026 and would continue investing in capacity expansion, automation and operational efficiency in FY27.
Results were filed after market close
The Q2FY27 results were filed after market close. No market reaction is assessed here because trading had ended when the filing was made.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹978 cr | ₹989 cr | -1.12% |
| Other income | ₹6 cr | ₹10 cr | -34.75% |
| Expenses | ₹898 cr | ₹898 cr | +0.02% |
| Operating profit | ₹80 cr | ₹91 cr | -12.35% |
| Operating margin (%) | 8.17% | 9.22% | — |
| Interest | ₹12 cr | ₹11 cr | +4.07% |
| Depreciation | ₹5 cr | ₹5 cr | +6.26% |
| Profit before tax | ₹70 cr | ₹85 cr | -18.07% |
| Tax | ₹18 cr | ₹21 cr | -16.71% |
| Net profit | ₹52 cr | ₹64 cr | -18.55% |
| EPS (₹) | ₹5.02 | ₹6.16 | -18.51% |
Operating margin of 8.17% compares with a Commodities sector median of 12.40% across 147 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Exports contributed ₹572 crore to first-half FY27 revenue from operations, which grew 36% year on year to ₹1,968 crore.
Guidance & outlook
- Demand for polymer compounds remains robust, led by wires and cables and supported by infrastructure, construction, industrial projects and power.
- The company aims to become a significant global supplier of polymer compounds from India.
Expansion
- The company incurred ₹79.22 crore for XLPE capacity addition completed in April 2026.
New initiatives
- The company will continue investing in automation and operational efficiency in FY27.
Problems & risks
- FY27 continues to be shaped by global volatility and uncertainty.
- The company cites ongoing geopolitical challenges affecting its business environment.
What to watch
- Whether operating margin recovers from 8.17% after the 1.05-percentage-point QoQ decline.
- Whether expenses remain aligned with revenue after growing 0.02% while revenue fell 1.12% in Q2FY27.
- Whether other income remains a material contributor after accounting for 9.06% of pre-tax profit.