Prince Pipes and Fittings (PRINCEPIPE) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 revenue grew 5% year-over-year to INR 609 crores (Rs 6,094.18 million), with EBITDA up 93% to INR 77 crores and PAT up 580% to INR 34 crores, despite a 7% YoY volume decline to 40,729 MT.

• Margin expansion was driven by improved product mix, higher contribution from plumbing and value-added products, and better realizations.

• Strategic focus on product innovation (notably DECILO and Smartfit Plus CPVC), network expansion, and digitization of the value chain to drive sustainable growth.

• Channel partners resumed normal stocking as PVC price uncertainty reduced, supporting demand recovery.

• Unaudited financial results for the quarter ended 30 June 2026 were reviewed and approved by the Board and statutory auditors, with no material misstatements or non-compliance.

Financial highlights

• Revenue: INR 609 crores (Rs 6,094.18 million, +5% YoY); Volumes: 40,729 MT (-7% YoY).

• EBITDA: INR 77 crores (+93% YoY), margin at 13% (+600 bps YoY).

• PAT: INR 34 crores (+580% YoY), PAT margin at 6%; EPS (excluding exceptional items) at Rs 3.05, up from Rs 0.44 YoY.

• Bathware segment revenue at INR 13 crores, EBITDA loss of INR 5 crores.

• Working capital days at 71; debtor days 40; inventory days 100 as of June 30, 2026.

Outlook and guidance

• Volume growth guidance for FY27 maintained at 12%-15%; operating margin guidance at 11%-13%.

• Expectation of improved Bathware performance, targeting INR 25 crores quarterly revenue and breakeven by Q3.

• No change in CapEx plan; INR 40-42 crores spent in Q1, mainly for Bhuj plant acquisition.

• The company will re-evaluate the impact of the new labour codes upon further notification and guidance.

• Inventory days expected to normalize to 65-75 by end of September quarter.