Prakash Pipes Limited Q2 net profit rises 72% on packaging sales

Prakash Pipes Limited reported net profit of Rs 16.08 crore for the quarter ended September 30, 2026, up 72% year on year, as flexible packaging revenue rose 71% to Rs 147.96 crore and revenue from operations increased 43% to Rs 259.08 crore.

What drove Prakash Pipes' Q2 profit growth?

Prakash Pipes' Q2 FY27 profit growth was driven by higher sales, particularly in flexible packaging, with profit before tax rising to Rs 21.90 crore from Rs 12.45 crore in Q2 FY26. Net profit increased from Rs 9.36 crore to Rs 16.08 crore, while total income, including other income, rose from Rs 182.14 crore to Rs 267.91 crore.

Revenue from operations climbed by Rs 78.09 crore year on year to Rs 259.08 crore in the September 2026 quarter. Cost of materials consumed rose to Rs 204.10 crore from Rs 135.16 crore, while total expenses increased by Rs 76.32 crore to Rs 246.01 crore.

Other income was Rs 8.83 crore in Q2 FY27, compared with Rs 1.15 crore a year earlier, contributing to the increase in total income. Tax expense also increased to Rs 5.82 crore from Rs 3.09 crore, while basic and diluted earnings per share rose to Rs 6.72 from Rs 3.91 for the quarter.

How did flexible packaging perform in Q2 FY27?

Flexible packaging was Prakash Pipes' largest revenue segment in Q2 FY27, generating Rs 147.96 crore, compared with Rs 86.60 crore in Q2 FY26. The segment's revenue increased by Rs 61.36 crore, or about 71%, and surpassed PVC Pipes and Fittings revenue of Rs 111.12 crore in the September 2026 quarter.

Flexible Packaging sales volume rose 38% to 5,549 metric tonnes, or MT, from 4,033 MT in the corresponding quarter of FY26. Prakash Pipes said it had already undertaken an expansion of production capacity to meet increasing customer demand, though the filing did not state the added capacity, project cost or completion date.

The segment's profit before tax and interest increased to Rs 3.61 crore in Q2 FY27 from Rs 1.96 crore in Q2 FY26. Its segment assets stood at Rs 334.51 crore on September 30, 2026, up from Rs 236.82 crore a year earlier, while segment liabilities were Rs 88.22 crore against Rs 41.45 crore.

What happened in the PVC Pipes and Fittings business?

Prakash Pipes' PVC Pipes and Fittings revenue increased 18% year on year to Rs 111.12 crore in Q2 FY27, but was below Rs 113.20 crore in the preceding June 2026 quarter. Segment profit before tax and interest was Rs 13.70 crore, versus Rs 11.30 crore in Q2 FY26 and Rs 13.29 crore in Q1 FY27.

PVC Pipes and Fittings sales volume was 10,773 MT in the September 2026 quarter, compared with 10,659 MT a year earlier. Prakash Pipes said resin prices had shown signs of stabilisation during the quarter, while adding that the geopolitical situation in West Asia could continue to affect resin prices.

For the half year ended September 30, 2026, PVC Pipes and Fittings generated Rs 224.32 crore of revenue, compared with Rs 215.48 crore in the prior-year half. Flexible Packaging grew more quickly, producing Rs 276.21 crore of half-year revenue against Rs 168.93 crore, taking its share of Prakash Pipes' Rs 500.53 crore revenue from operations.

Why did Prakash Pipes report negative operating cash flow?

Prakash Pipes reported net cash used in operating activities of Rs 4.89 crore in the half year ended September 30, 2026, compared with net operating cash generation of Rs 9.96 crore a year earlier. The movement came despite half-year profit before tax increasing to Rs 43.95 crore from Rs 26.31 crore.

Working-capital movements accounted for the difference: inventories absorbed Rs 33.88 crore, trade receivables absorbed Rs 19.25 crore, and other current assets absorbed Rs 18.16 crore. Those outflows were partly offset by Rs 21.17 crore from trade payables and other financial liabilities, leaving cash from operating activities negative at Rs 3.25 crore before direct taxes of Rs 1.64 crore.

Prakash Pipes spent Rs 33.57 crore on property, plant and equipment during the first half, compared with Rs 12.42 crore in the previous-year period. Financing activities provided Rs 11.68 crore, and cash and cash equivalents closed at Rs 6.61 crore on September 30, 2026, down from Rs 18.72 crore at March 31, 2026.

What does Prakash Pipes' balance sheet show?

Prakash Pipes' total assets were Rs 676.33 crore on September 30, 2026, compared with Rs 603.94 crore at March 31, 2026. Property, plant and equipment increased to Rs 165.89 crore from Rs 135.97 crore, while inventories rose to Rs 118.36 crore from Rs 84.48 crore and trade receivables increased to Rs 116.50 crore from Rs 97.25 crore.

Total equity reached Rs 505.49 crore at September-end, up from Rs 478.77 crore at the end of March 2026, with other equity rising to Rs 481.57 crore. Non-current borrowings rose to Rs 16.75 crore from Rs 2.86 crore, while current borrowings were broadly unchanged at Rs 16.32 crore versus Rs 16.31 crore.

Prakash Pipes also disclosed that it has held a 26% equity stake in BECIS Solar 3 Private Limited since February 23, 2026. Prakash Pipes said it does not exercise significant influence over the captive power company under Indian Accounting Standards, or Ind AS, so its financial statements are not consolidated with those of Prakash Pipes.

Conclusion

Prakash Pipes' September-quarter result combined 43% growth in revenue from operations with a 72% increase in net profit to Rs 16.08 crore. Flexible Packaging supplied Rs 147.96 crore of Q2 revenue and recorded 38% volume growth, while PVC Pipes and Fittings contributed Rs 111.12 crore and delivered higher segment profit than a year earlier.

The next results will show whether the flexible-packaging capacity expansion supports demand beyond the 5,549 MT sold in Q2 FY27, and whether working-capital use moderates after inventories reached Rs 118.36 crore at September 30, 2026. Prakash Pipes also identified resin-price exposure linked to conditions in West Asia as a factor affecting the PVC Pipes and Fittings outlook for the remaining half of FY27.