Prince Pipes

Prince Pipes reported a strong Q4 FY26 with revenue of INR 850 crores, an 18% YoY increase, and volumes reaching 62,167 metric tons, up 23% YoY. EBITDA for the quarter stood at INR 110 crores, marking a 100% YoY growth with a 13% margin. For the full year FY26, revenue was INR 2,598 crores (3% YoY growth) and volumes were 1,91,238 metric tons (8% YoY growth), with an EBITDA of INR 232 crores and a 9% margin.

The company expanded its product portfolio with the launch of DECILO, an advanced low-noise PP pipe solution, engineered with mineral-filled polypropylene technology. This innovation is expected to enhance product mix and customer engagement. Demand generation efforts were intensified in underpenetrated markets to expand geographic reach and accelerate volume growth, contributing to market share gains.

Prince Pipes successfully completed the second phase of its asset purchase agreement for the Bathware brand Aquel from Klaus Waren Fixtures Limited. This acquisition includes land, building, machinery, and manufacturing equipment at Bhuj, Gujarat, establishing a dedicated manufacturing base for Bathware operations. The Bathware segment reported INR 16 crores in revenue and a loss of INR 5 crores for Q4 FY26, with a target to achieve breakeven at INR 20-25 crores quarterly run rate by Q2 or Q3 FY27.

The company demonstrated strong operational efficiency, significantly improving its working capital. Working capital days reduced to 45 days in FY26 from 98 days in the previous year. Receivable days improved to 51 days from 61 days, and inventory days stood at 70 days as of March 31, 2026. Management aims to further reduce receivable days by 10-15 days by the end of the current financial year.

Management is cautiously optimistic about a gradual recovery, supported by improving PVC price stability. They guided for an EBITDA margin of 11-13% and volume growth of 12-15% for the full year. Key growth drivers include expanding geographic presence, accelerating innovation, enhancing operational efficiencies, and strategic diversification. The share of value-added products in revenue is targeted to increase from 23-24% in FY26 to 27-28% next year.

Overall capacity utilization stood at 52% for FY26, with the new Begusarai plant operating at 60%. The company plans a capex of INR 200-210 crores for FY27, which includes maintaining existing plants, debottlenecking 2-3 plants, and completing the Bhuj acquisition (INR 40-45 crores). The target is to achieve 58-60% capacity utilization if the 15% volume growth guidance is met, and a gross asset turn of 2.5x in the long term.

The industry experienced significant consolidation in FY26, with smaller players struggling due to volatile raw material prices and subdued demand. This environment allowed larger players like Prince Pipes to gain market share, especially through aggressive pricing and strong supply chains. Management noted that competitive intensity has reduced, and they are focusing on retail penetration and adding new channel partners in white spaces.