Cracks in Earnings of Tile and Plastic Pipe Makers May Widen in Q1

The demand for plumbing pipps is likely to be weak, while slower government spending on construction projects is seen hurting demand for infrastructure pipes. Plus, Early Monsoon Arrival Could Adversally Impact Demand for Agricultural Pips.

Moreover, The Average Realization for Major Pipe Companies is Likely to Remain Under Pressure Sequationally in Q1fy26.

“Dealers indicated that pipe companies have taken a price of 2.5-5.0% in Q1fy26 (Quarter-to-Date) to Pass on the Impact of Recent Increase in Poly Vinyl Chloride (PVC).

However, Average Pipe Realization is Likely to be almost at a similar level compared to March ’25 end as pvc resin prices went up by 3.5/kg over the past one month versus correction of 4/kg seen in April ’25, “said bob capital markets report Dated 18 June. For this channel check, bob interactive with 17 plastic pipe deals deals

In the case of tile makers, domestic demand is moderate and oversupply in the industry is causing significant pricing pressure.

“With issues in the expenses in fY25, 5–10% of expenses from morbi have shifted to the domestic market. This diversion has resulted in dumping in the dumping of excess in the demesti Competition and additional stress on pricing, “said a Pl Capital Report Dated 14 June.

Widespread expectations are that Tile Exports May Remain Weak In the Near Future Due to the Trade Tariff Impact, In the Form of Lower Exports to the Us Market and A Slwdown in Global demand. While Demand could get a push in h2fy26 from the anticipated recovery in the individual home building segment, the cracks on margin may not be reported unless unless unless unless unless unless unless unless unhels.

The March Quarter (Q4FY25) was dull for companies in bot these sector. Volume Growth for Plastic Pipe Makers was MUUTED; Slipping Pvc pris and channel destrocking Led to Year-On-Year Margin Contraction. For Pipe Companies, Restocking/Destocking Decisions of dealers is highly influenced by movement in Pvc prices.

Listed Tile Makers Grappled With Margin Pressure from Weak Retail Demand and Increased Competition from Tile Companies in Gujarat’s Morbi, India’s Ceramic Hub.

Also read: Tile stocks are cracking as companies brace for a mute fy25 Finish

On an aggregate basis, pipe companies under the coverage of nuvama research saw ebitda and pat contract 10% and 7%, Hurt by destrocking and lower government speeding.

“Tile Players-Hurt by Weak Demand-Posted Top-Line Growth of Mere 2% Year-On-Oyar While Ebitda/Pat Decreased 20%/52% Year-On-Operating Delete to Operating Delege and Effs in Non-OPFS,” Nuvama.

Pat is Profit after tax. Ebitda is earnings before interest, tax, depreciation and amortization.

No Wonder, Stock Performances of Companies in these sector have been disappointing. In the last one year, shares of kajaria cramics ltd and somany cramics ltd have declined by 24% etc. Supreme Industries Ltd, Prince Pipes and Fittings Ltd, Finolex Industries Ltd and Astral Industries Ltd Have Shed Around 30-50%.

Apart from dismal earnings, the broader valati in equity markets, where midcaps and small caps tend to see a steeper correction than salage caps, may have exacerbated the Pain for these stocks.

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