Plastic pipes makers poised to bounce back in Q2 as PVC prices recover

Harsha Jethmalani
1 min read3 Sep 2026, 01:08 PM IST
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PVC price stability is key to dealer restocking and the earnings outlook for pipe manufacturers. (Pixabay)
Summary
Reinstated import duties and minimum import prices are curbing cheap imports, encouraging dealers to restock and driving volume growth targets for top listed players.

Plastic pipe makers are set for a turnaround in Q2FY27 following a turbulent June quarter (Q1FY27). During Q1FY27, listed manufacturers suffered lower volumes driven by channel destocking, as falling import duties, greater availability of cheap Chinese polyvinyl chloride (PVC) resin, and sluggish demand weighed on PVC prices.

Aggregate volumes for plastic pipe companies tracked by PL Capital dropped around 16% year-on-year in Q1FY27. The agricultural pipes segment took a bigger hit than non-agricultural (plumbing) pipes. Despite March-June being peak season, demand for agricultural pipes remained muted as elevated fertilizer costs and high PVC prices hurt volumes.

Global PVC prices are also inching up. Channel re-stocking has improved since early July and domestic PVC resin prices have consistently increased from 78 per kg then to 94 per kg on 1 September, the PL report added. Increased shipping rates are also likely to make imports dearer.

Strong guidance

The improved visibility on PVC resin prices bodes well for channel re-stocking and volume recovery for listed companies. Astral has guided for double-digit pipe volume growth and more than 20% value growth in FY27, with Ebitda margin guidance at 16-18%. Supreme Industries eyes pipe volume growth of 15-17% and an Ebitda margin of 14%-14.5% this year. Prince Pipes and Fittings expects 12-15% volume growth and an Ebitda margin of 11-13%.

Also Read | Manufacturing growth slips to five-year low: Is more pain in store?

Margins remained resilient in Q1FY27 despite volume pressure. Pipe manufacturers covered by Nuvama Research benefited from a favourable product mix, driving year-on-year margin expansion across the board during the quarter.

Astral recorded a 40 basis point (bps) margin improvement to 18.3%, while Supreme Industries reached 14.6% (up 240 bps). Prince Pipes expanded its margin to 12.7% (up 580 bps), and Finolex Industries’ margin rose to 12.1% (up 310 bps). These stocks have delivered mixed returns over the past six months.

Also Read | India’s steel gap is forcing Jindal SAW to keep importing

About the Author

Harsha Jethmalani is a Deputy Editor at Mint with over a decade of experience covering stock markets and corporate India. As a key member of the Mark to Market team, she specializes in delivering cutting-edge commentary on market trends, the economy, and corporate financial reports.<br><br>Born and raised in Mumbai, Harsha’s entry into business journalism was a serendipitous pivot. Graduating during the 2008–2009 financial crisis, her initial goal of becoming a research analyst at an MNC was rerouted. However, what began as a chance career move quickly became a conscious choice; she discovered that financial journalism is a powerful storytelling tool capable of influencing and empowering the financial decisions of a massive audience.<br><br>Harsha began her career in 2009 at IRIS Business Services (Myiris.com), tracking mutual funds and interviewing fund managers. In 2011, she joined the Network18 Group, writing extensively on equity market trends for Moneycontrol.com and hosting pre- and post-market audio updates. Following a stint covering personal finance at Dalal Times, she joined Mint in 2016 as a Content Producer, steadily rising through the ranks to her current editorial position.<br><br>A defining highlight of her tenure at Mint was her extensive coverage of India's historic Goods and Services Tax (GST) reform. She chronicled the massive indirect tax overhaul from its initial conceptual and execution hurdles to its eventual streamlining. Her impactful reporting earned official recognition when her article exposing a spike in gold smuggling ahead of the GST rollout was formally acknowledged by the Office of the Director General of Audit (Central), Kolkata. Currently, Harsha closely tracks the IT, cement, real estate, and paint sectors. Her sharp news sense and ability to spot emerging trends consistently bring fresh, actionable perspectives to market analysis.<br><br>She holds a postgraduate degree in financial markets from Indira Gandhi National Open University and a Bachelor of Management Studies from Vivekanand Education Society, Chembur, Mumbai.

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