💰 Financial Performance

Revenue Growth by Segment

PVC Pipes & Fittings division achieved a sales volume of 10,659 MT in Q2 FY26, a growth of 18.7% YoY from 8,980 MT. However, total revenue for H1 FY26 was INR 384.41 Cr, a decline of 5.1% compared to INR 405.03 Cr in H1 FY25.

Profitability Margins

Net Profit Margin for H1 FY26 was 5.1% (INR 19.67 Cr), a significant decline from 12.3% (INR 49.70 Cr) in H1 FY25. Gross margins were impacted by material costs rising to 76.1% of revenue in H1 FY26 from 70.7% in H1 FY25.

EBITDA Margin

EBITDA Margin for H1 FY26 was 9.1% (INR 35 Cr), down from approximately 16.7% in FY25 (INR 130.22 Cr EBITDA on INR 780.48 Cr revenue).

Credit Rating & Borrowing

Borrowing costs for H1 FY26 were INR 1.32 Cr, representing 0.3% of revenue, down from INR 3.76 Cr (0.9% of revenue) in H1 FY25.

⚙️ Operational Drivers

Raw Materials

PVC Resin and Chemicals represent the primary raw materials, with total material costs accounting for 76.1% of revenue (INR 292.67 Cr) in H1 FY26.

Capacity Expansion

Current quarterly sales volume is 10,659 MT for the PVC Pipes division. Specific installed capacity and expansion timelines are not disclosed.

Raw Material Costs

Raw material costs were INR 292.67 Cr in H1 FY26, up from INR 286.43 Cr in H1 FY25 despite a decline in total revenue, indicating higher input price pressure.

Manufacturing Efficiency

Volume growth of 18.7% in Q2 FY26 despite a revenue decline suggests a shift in product mix or lower average realizations per unit.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

Growth is driven by a strategic marketing approach in the PVC Pipes & Fittings division and maintaining high quality standards in the Flexible Packaging division (BRCGS Grade 'A' certified). The company is also optimizing its corporate structure by shifting its registered office to Amritsar in December 2025.

Products & Services

PVC Pipes, PVC Fittings, and Flexible Packaging solutions.

Brand Portfolio

Prakash

🌍 External Factors

Industry Trends

The industry is seeing a shift toward higher quality and food-grade packaging standards, which the company is addressing through BRCGS and ISO 22000 certifications.

Competitive Landscape

The company operates in a competitive market for PVC pipes and packaging, facing both organized and unorganized players.

Competitive Moat

Moat is built on the 'Prakash' brand name and high-level certifications (BRCGS Grade 'A', ISO 9001:2015, ISO 22000:2005), which are critical for flexible packaging in food industries.

Macro Economic Sensitivity

Highly sensitive to infrastructure spending and the Indian monsoon cycle, which directly affects the PVC Pipes & Fittings division.

Consumer Behavior

Increased demand for branded and certified quality products in the plumbing and packaging sectors.

⚖️ Regulatory & Governance

Industry Regulations

The company must comply with BRCGS, ISO, and Sedex Smeta 4 Pillar standards for its manufacturing facilities.

Taxation Policy Impact

Effective tax rate for H1 FY26 was 25.2% (INR 6.64 Cr tax on INR 26.31 Cr PBT).

Legal Contingencies

The company stated it has no pending litigation that would impact its financial position as of March 31, 2025.

⚠️ Risk Analysis

Key Uncertainties

Raw material price volatility (PVC resin) and weather-related demand fluctuations (monsoon) are the primary business risks.

Geographic Concentration Risk

The company is headquartered in New Delhi with its registered office in Punjab, suggesting a concentration in Northern India.

Third Party Dependencies

High dependency on raw material suppliers, as material costs represent 76.1% of total revenue.