Prince Pipes and Fittings (PRINCEPIPE) Q2 25/26 earnings summary

Executive summary

• Q2 and H1 FY 2026 were marked by challenging market conditions due to PVC resin price volatility, weak demand, and erratic monsoons impacting infrastructure, real estate, and agriculture segments.

• Sales volume for Q2 FY26 was 42,761 MT, with H1 FY26 at 86,496 MT, reflecting stable operational throughput year-over-year.

• Despite headwinds, operational efficiencies, cost optimization, and targeted market initiatives supported resilience and healthy volume-driven growth in key regions.

• Phase two of the Bihar manufacturing unit was commissioned, establishing a pan-India manufacturing footprint and reinforcing long-term growth priorities.

• Expansion of the bathware brand Aquel and recognition as a preferred supplier for the Navi Mumbai airport project highlighted brand strength and market presence.

Financial highlights

• Q2 FY 2026 revenue from operations: INR 595 crores (₹5,945.74 million), down 4% YoY; H1 FY 2026 revenue: INR 1,175 crores (₹11,749.90 million), down 4% YoY.

• Q2 FY26 EBITDA: INR 35 crores (₹550 million), margin 9% (up 200 bps YoY); H1 FY26 EBITDA: INR 95 crores (₹1,353.20 million), margin 8%.

• Q2 FY26 PAT: INR 15 crores (₹146.33 million), margin 2%; H1 FY26 PAT: INR 20 crores (₹194.53 million), down 49% YoY.

• Working capital days improved to 47 in H1 FY26 (from 93 YoY); receivables at 52 days; inventory at 80 days as of 30th September 2025.

• Net cash from operating activities in H1 FY26 was ₹1,996.58 million, up from ₹990.33 million in H1 FY25.

Outlook and guidance

• Management maintains guidance for high single-digit volume growth for FY 2026, requiring 15-16% growth in H2.

• Margins expected to normalize to double digits (10-12% EBITDA) by Q4 FY 2026 and remain sustainable in FY 2027.

• Bathware business expected to break even within four quarters, targeting INR 25-30 crores quarterly sales.

• Focus on expanding distribution network, value-added products, and improving ROCE and ROE.

• Positive industry outlook for FY 2027-28 with anticipated double-digit volume growth as demand recovers and capacity additions pay off.