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Plastic Piping Players: Strong Q4FY26 Volume growth amid PVC price volatility

ICICIdirect Research 22 May 2026 DISCLAIMER

The piping industry witnessed strong consolidation and market share gains for organised players in Q4FY26, supported by sharp PVC price movements (up by ~21% QoQ to ₹ 115/kg in Q4FY26 before correcting ~22% over the past two months to ~₹ 90/kg) and the inability of unorganised players to absorb higher raw material costs. The steep correction led to inventory liquidation during April-May, resulting in all-time low channel inventories. Recent price stabilization and expectations of price increase (following the expiry of the 7.5% customs duty exemption on 30 June 2026) has triggered dealer restocking. Going forward, industry volumes/value are expected to grow by 8%/18% respectively in FY27.

Astral (CMP - ₹ 1544, PT - ₹ 1900)

Astral reported a strong Q4FY26 performance with consolidated revenue growing 25% YoY to ₹ 2,089 crore, led by robust plumbing segment growth of 24% YoY to ₹ 1,534 crore and piping volumes rising 24% YoY to 84,041 MT, while plumbing EBITDA margins expanded 252 bps YoY to 23%. Management has guided for strong FY27 growth driven by healthy demand outlook and improving product mix. Company expects plumbing volume/value growth of 10-15%/15%+ with EBITDA margins of 16-18%. The company also announced ₹300 crore capex towards backward integration through a 40,000-45,000 MT CPVC resin plant, which is expected to drive ~200 bps margin expansion and further market share gains. We estimate its consolidated Revenues/EBITDA/PAT to grow at ~13%/16%/18% CAGR over FY25-FY28E. We have a Buy rating on the stock with a Target Price of ₹ 1900/- i.e. 60x P/E on FY28E.

Supreme Industries (CMP - ₹ 3573, PT - ₹ 4450)

Supreme Industries reported a strong Q4FY26 performance driven by robust piping demand, with plastic piping volumes/value growing 14%/11% YoY and CPVC volumes surging 38% YoY, while consolidated EBITDA margins expanded 391 bps YoY to 17.7%. Management guided for piping volume growth of 15-17% YoY in FY27, supported by recovery in agriculture demand, sustained housing demand and contribution from the Wavin acquisition, while the company plans ~₹ 1,000 crore capex in FY27 to expand piping capacity by ~1 lakh MT. We estimate its Revenues/EBITDA/PAT to grow at ~13%/16%/19% CAGR over FY26-FY28E. We have a Buy rating on the stock with a Target Price of ₹ 4450/- i.e. 45x P/E on FY28E.

Prince Pipes and Fittings (CMP - ₹ 278, PT - ₹ 370)

Prince Pipes reported a strong Q4FY26 performance with highest-ever quarterly piping sales volume of 62,167 MT (up 23% YoY and 46% QoQ), while revenue grew 18% YoY to ₹ 850 crore and EBITDA margins expanded sharply by 527 bps YoY to 13% driven by strong gross margins and operational efficiencies. Management guided for healthy FY27 growth with volume growth of 12-15% and EBITDA margins of 11-12%, supported by increasing retail contribution, dealer additions, higher value-added product mix and operational efficiencies. We estimate its revenues/EBITDA/PAT to grow at a CAGR of ~13%/31%/56% over FY26-FY28E. We have a BUY rating on the stock with a Target Price of ₹ 370/- i.e. 23x P/E on FY28E.

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