DCW Limited, originally known as Dhrangadhra Chemical Works, is a prominent multi-product chemical company with a rich heritage spanning over eight decades. Established in 1939, it took over India's first Soda Ash facility, which itself was founded in 1925 at Dhrangadhra, Gujarat. The company has since evolved into a diversified chemical manufacturer, known for its focus on commodity chemicals, specialty chemicals, and intermediate products.
As a leading chemical powerhouse, DCW Limited is a significant manufacturer of basic chemicals such as caustic soda, liquid chlorine, and various chlorine-based products. Its journey from a pioneering soda ash plant to a modern, diversified chemical producer highlights its foundation of innovation and sustained presence in the Indian chemical industry.
As of June 2025, DCW Limited boasts a market capitalization of ₹2,249 crore. The company has demonstrated remarkable financial resilience and growth. For the full year ended March 2025 (FY25), DCW reported a net profit of ₹30.28 crore, marking a substantial 93.36% increase compared to ₹15.66 crore in the previous year. Sales for FY25 also rose by 6.88% to ₹2,000.34 crore from ₹1,871.59 crore in March 2024.
Amidst challenging market conditions in the global chemical industry during FY25, the company achieved a significant 12% growth in EBITDA and a 100% increase in profit after tax. This robust performance was largely driven by the strong showing of its Specialty Chemicals segment, underscoring the company's strategic focus on value-added products.
- Revenue (FY25): ₹2,000.34 crore
- Net Profit (FY25): ₹30.28 crore
- Market Capitalization: ₹2,249 crore (as of June 2025)
- P/E Ratio: 76.81
- P/B Ratio: 2.26
- 52-Week High/Low: ₹113/₹50
- Dividend Yield: 0.13%
- Promoter Holding: 44.87% (as of March 2025)
DCW Limited operates through multiple business segments, showcasing a diversified product portfolio within the chloro alkali and petrochemical industry. The company's primary segments include PVC, Chloro Alkali, and Soda Ash.
DCW is a major producer of Poly Vinyl Chloride (PVC) in India, holding approximately a 10% market share. The company manufactures PVC, a white powder, through the suspension polymerization process from Vinyl Chloride Monomer. This segment contributed 35% of revenue in 9M FY25, a shift from 51% in FY22. PVC is widely used in the insulation of cables and pipes, windows and profiles, and flooring tiles. DCW's PVC plant is located at Sahupuram, Tamil Nadu, with an installed capacity of 90 thousand MTPA as of March 31, 2023.
The company's specialty chemicals portfolio includes high-value products such as synthetic rutile, synthetic iron oxide pigment (SIOP), and chlorinated polyvinyl chloride (C-PVC). DCW has commissioned one of Asia's largest synthetic iron oxide pigment plants, highlighting its commitment to expanding its specialty chemicals footprint.
DCW's commodity chemicals segment comprises foundational products like soda ash, caustic soda, and poly vinyl chloride (PVC). Additionally, its intermediate chemicals include liquid chlorine, hydrochloric acid, trichloroethylene, utox, ferric chloride, and sodium bicarbonate, among others, serving a wide array of industrial applications.
In Q1 FY25, DCW faced some operational challenges, reporting a 32.7% fall in net profit to ₹6.72 crore, despite a 14% rise in revenue from operations to ₹499.52 crore compared to Q1 FY24. However, the company demonstrated a strong recovery in subsequent quarters.
The December 2024 quarter (Q3 FY25) showcased a robust performance, with revenue from operations surging 19.21% year-on-year to ₹474.17 crore. During this quarter, the company reported a pre-tax profit of ₹20.25 crore, a significant turnaround from a pre-tax loss of ₹19.02 crore in Q3 FY24, indicating effective management of costs and improved market conditions.
DCW Limited is strategically investing in enhancing its CPVC production capacity and is focused on expanding its portfolio of value-added specialty products. These initiatives are expected to boost profitability and strengthen customer loyalty. The anticipation of anti-dumping measures could further improve margins, favorably positioning the company in the competitive landscape.
While the company acknowledges challenges such as pricing pressures from low-cost imports, particularly from China, and a decline in its Basic Chemicals segment, management remains optimistic about long-term demand growth, especially within the Indian market.
DCW Limited has established a robust global presence, with its distribution network extending across more than 14 countries. The company's operations span over 12 countries, including key markets such as the United States, Europe, Japan, Malaysia, and the Netherlands. This expansive reach allows DCW to cater to over 100 companies in export markets, underscoring its capabilities as a global chemical supplier.
The promoter holding in DCW Ltd has shown stability and confidence, increasing marginally to 44.87% as of March 2025, from 44.86% as of June 2024. This indicates a consistent belief from the promoters in the company's future prospects and strategic direction.
DCW Limited continues to leverage its decades of experience, diversified product portfolio, and strategic initiatives to navigate market challenges and capitalize on growth opportunities in the specialty chemicals and value-added product segments, maintaining its position as a significant player in India's chemical industry.
