Prince Pipes and Fittings (PRINCEPIPE) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 sales volume grew 4% YoY to 43,735 MT, but revenue declined 4% YoY to ₹580 crore due to weaker realizations from PVC price volatility and subdued demand.

• EBITDA dropped 31% YoY to ₹40 crore, with EBITDA margin at 7%, and profit after tax fell 80% YoY to ₹5 crore.

• Persistent macroeconomic headwinds, including inflation and reduced government infrastructure spending, impacted channel inventory and profitability.

• Strategic focus on operational resilience, brand visibility, and channel engagement is driving volume-led growth and product innovation.

• Expansion of Bathware segment (Aquel) into South and East regions, with dedicated teams and recent acquisition to strengthen market presence.

Financial highlights

• Q1 FY26: volumes 43,735 MT (+4% YoY); revenue ₹580 crore (-4% YoY); EBITDA ₹40 crore (margin 7%); PAT ₹5 crore (margin 1%).

• Working capital cycle improved to 93 days (from 98 days QoQ); receivables at 55 days, inventory at 83 days as of June 30, 2025.

• Inventory loss of ₹15-20 crore in Q1 due to sharp PVC price correction; Bathware segment loss of ₹5 crore.

• Bathware segment revenue: ₹11 crore in Q1.

• Basic and diluted EPS for Q1 FY26 stood at ₹0.44, down from ₹2.23 YoY.

Outlook and guidance

• High-single-digit to low-double-digit volume growth expected for FY26, with July showing strong momentum.

• Margins expected to improve from Q2 as inventory losses subside and operating leverage increases; normalized EBITDA margin (12%) targeted by Q4.

• Bathware segment breakeven expected in 4-6 quarters, with FY26 revenue target of ₹50-60 crore.

• Industry growth projected at 6-7% CAGR over next 2-3 years.

• Focus on expanding product chain and distribution network to strengthen water infrastructure.