Prince Pipes and Fittings (PRINCEPIPE) Q3 25/26 earnings summary

Executive summary

• Achieved low single-digit revenue and sales volume growth in Q3 FY26, with volumes reaching 42,575 MT and revenue at INR 573 crores, despite subdued demand in key segments.

• Focused on operational resilience, brand building, product portfolio expansion, and distribution network enhancement, including the launch of SmartFit Plus CPVC pipes and expansion of the bathware segment with Aquel brand initiatives.

• Continued investments in innovation, value-added products, and demand generation in under-penetrated markets, with strategic emphasis on premiumization and future manufacturing capacities.

• Optimistic about gradual demand recovery, supported by stabilization in PVC pricing, geographic expansion, and positive channel sentiment.

• Unaudited financial results for Q3 and 9M FY26 were reviewed and approved by the Board and auditors, with no material misstatements or non-disclosures.

Financial highlights

• Q3 FY26 revenue from operations: INR 573 crores (Rs 5,732.70 million); volume: 42,575 MT, up 3% YoY; EBITDA: INR 28 crores (5% margin); PAT: INR -2 crores, impacted by INR 2.05 crore provision for employee benefits.

• Nine-month FY26 revenue: INR 1,748 crores; volume: 129,071 MT, up 2% YoY; EBITDA: INR 122 crores (7% margin); PAT: INR 17 crores.

• Gross profit margin improved to 25% in Q3 FY26 from 22% YoY; 9M FY26 gross margin was 26%.

• Working capital days improved to 59 in 9M FY26 from 66 YoY; receivables at 49 days, inventory at 76 days.

• Net worth stood at ₹1,265 crore in FY25; net debt position is nearly neutral or zero.

Outlook and guidance

• January 2026 saw double-digit volume growth, driven by restocking and improved channel sentiment; Q4 expected to be the best quarter with continued positive sentiment.

• FY27 volume growth guidance: aspiring for double-digit growth, minimum 8%-10%; sustainable EBITDA margin targeted at 10%-12% (excluding bathware losses).

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

• Strategic emphasis on premiumization, innovation, and building future manufacturing capacities.

• Impact of new labour codes will be further evaluated and accounted for when rules are notified.