Detailed Narrative
Q2 & H1 FY26 Financial Performance Overview
Prince Pipes reported Q2 FY26 revenue of ₹595 crores and H1 FY26 revenue of ₹1,175 crores. Q2 EBITDA stood at ₹55 crores with a 9% margin, marking a 200 basis point growth. H1 EBITDA was ₹95 crores, with an 8% margin. Volumes for H1 FY26 reached 86,496 metric tonnes, a modest 1.19% increase over the previous year, reflecting a challenging market environment.
Industry Headwinds and Market Share Resilience
The PVC pipes market faced significant challenges in Q2 FY26, including volatility in PVC resin prices, weak demand in infrastructure and real estate due to extended monsoons, and softer agricultural demand. The overall PVC consumption in the September quarter saw a 9% degrowth. Despite these headwinds, Prince Pipes managed to hold onto its volumes and maintain market share, attributing this to the struggles of smaller, unorganized players.
Strategic Capacity Expansion and Operational Efficiency
A key milestone was the successful commissioning of Phase 2 operations at the Bihar manufacturing unit in early September 2025, completing an investment of approximately ₹240 crores. This expansion enhances the company's pan-India manufacturing footprint. Management also highlighted internal cost optimization drives and an improved product mix, favoring value-added segments, which contributed to better margins in Q2.
Outlook for H2 FY26 and Beyond
Management anticipates a gradual demand recovery in H2 FY26, supported by restocking activities and improved market sentiment, particularly with the imminent announcement of anti-dumping duties (ADD) on PVC. To achieve its high single-digit volume growth guidance for FY26, the company projects needing over 16% volume growth in H2. For FY27, an EBITDA margin of around 12% is deemed achievable, with robust double-digit volume growth expected in FY27 and FY28.
Bathware Business (Aquel) Expansion and Breakeven Target
The bathware brand, Aquel, continues its expansion, with new display centers opened in Jammu & Kashmir and Uttar Pradesh. Q2 FY26 bathware revenue was ₹12 crores, representing a 40% YoY growth, contributing to an H1 consolidated loss of ₹10 crores. Management targets breakeven for the bathware business within four quarters (by Q2 FY27), requiring quarterly sales of ₹25-30 crores, driven by geographical expansion into South and East regions.
CPVC Strategy and Technological Edge
Prince Pipes is diversifying its CPVC raw material sourcing and has launched its own CPVC brand to enhance competitiveness and cost efficiency, aligning with evolving industry dynamics. Beyond capacity and product range, the company is building a strong edge through technology adoption, including distribution management and sales force automation systems, providing real-time visibility of retailer-wise sales and strengthening market control.
Capex and Depreciation Projections
H1 FY26 capex was ₹120 crores (₹70 crores for Bihar, ₹50 crores for operational plant). For H2 FY26, the company expects a cash outflow of ₹110 crores, including ₹45-50 crores for Aquel's committed liabilities. Quarterly depreciation is projected to be in the range of ₹30-32 crores from Q3 FY26 onwards, following the full commissioning of the Bihar plant. No major capacity additions for existing product lines are foreseen for FY27.