Prince Pipes Q4 FY26: Record Volumes, Margin Bounce, and a Tighter Working Capital Cycle

Prince Pipes and Fittings Limited closed Q4 FY26 with its highest ever quarterly volumes and a sharp recovery in profitability. For the quarter, sales volume stood at 62,167 metric tonnes, up 23 percent year on year. Revenue from operations rose 18 percent to INR850 crore. EBITDA doubled year on year to INR110 crore and margins expanded to 13 percent, compared with 8 percent in Q4 FY25. Profit after tax for the quarter was INR56 crore, up 133 percent, with PAT margin at 7 percent.

FY26, however, was a more mixed year when viewed through the lens of topline growth. Revenue from operations came in at INR2,598 crore, up 3 percent year on year, while volumes grew 8 percent to 1,91,238 metric tonnes. Even with modest revenue growth, operating performance improved materially. EBITDA increased 43 percent to INR232 crore and margins rose to 9 percent from 6 percent in FY25. PAT after exceptional item was INR73 crore, up 70 percent.

FY26 context: volatility, channel sentiment, and the company’s response

Management described FY26 as a challenging year for the industry due to volatile raw material prices, extended unseasonal rainfall, and subdued demand across key end user categories. PVC price fluctuations were highlighted as a major disruptor to channel sentiment.

A key point from the earnings call was the company’s approach to channel management in volatile periods. Management stated that during Q4, inventory gains were passed on to distributors and channel partners to support faster inventory movement and strengthen relationships, rather than optimizing for near-term inventory gains.

This decision matters because the quarter also coincided with sharp polymer price moves. Management indicated that April saw industry-wide destocking, while May saw a revival in primary demand as channel partners liquidated inventory.

Financial snapshot

Metric	Q4 FY26	Q4 FY25	YoY	FY26	FY25	YoY
Volume (MT)	62,167	50,454	23%	1,91,238	1,77,202	8%
Revenue from operations (INR crore)	850	720	18%	2,598	2,524	3%
EBITDA (INR crore)	110	55	100%	232	162	43%
EBITDA margin	13%	8%	500 bps	9%	6%	300 bps
PAT (INR crore)	56	24	133%	73	43	70%
PAT margin	7%	3%	400 bps	3%	2%	100 bps

Note: FY26 includes an exceptional item of INR2.05 crore net of tax related to estimated increase in employee benefits provision arising from the new labour code.

Working capital: the standout operational lever in FY26

One of the clearest improvements through FY26 was working capital efficiency. Working capital days reduced sharply to 45 days in FY26 from 98 days in FY25. The company reported receivable days improving to 51 from 61, and inventory days reducing to 70 from 88.

The cash flow statement reflects this swing. Net cash from operating activities was INR526 crore in FY26 versus INR119 crore in FY25, driven by cash generated from operations of INR530 crore. Investing cash outflow was INR325 crore and financing cash outflow was INR153 crore, ending the year with cash and cash equivalents of INR128 crore.

On the call, management said the sustainable levers for working capital improvement are debtor days and inventory days, while payables are more dynamic depending on import versus domestic sourcing. The company stated an intent to reduce receivable days by another 10 to 15 days by the end of FY27.

Strategy update: product innovation and portfolio expansion

The investor presentation and call focused on expanding the product portfolio and improving the share of value-added products.

During Q4, the company launched a low-noise polypropylene pipe system called Decilo. Management described it as mineral-filled polypropylene technology designed to reduce noise and enhance flow performance, aimed at modern infrastructure use cases. The company positioned this as part of its broader diversification and innovation agenda.

Separately, management discussed CPVC as a key growth area. In the call, they indicated CPVC volume growth was higher than overall company volume growth in Q4 and FY26, and that their CPVC competitiveness improved after launching the Smartfit Plus CPVC range.

On the value-added mix, management said value-added products contributed around 23 to 24 percent in FY26 and the company is targeting 27 to 28 percent next year, driven by stronger growth in CPVC, PPR, and new polypropylene offerings.

Bathware: Aquel scaling, but still loss-making in Q4

Bathware is the company’s newer vertical under the Aquel by Prince brand. During the quarter, the company completed the second phase of its asset purchase agreement for the bathware manufacturing facility at Bhuj, Gujarat, following regulatory approvals. The acquisition covered identified assets including land, buildings, machinery and manufacturing equipment.

In Q4 FY26, management disclosed bathware revenue of INR16 crore and a loss of INR5 crore. They reiterated a target to reach breakeven once quarterly revenue reaches around INR20 crore to INR25 crore, with an expected timeline of Q2 or Q3 of FY27.

The company also highlighted expansion of Aquel’s footprint, noting 200 plus retail touchpoints and continued experience centre additions, including a new centre inaugurated in Vadodara during the quarter.

FY27 guidance: margin normalization and steady volume growth

Management provided explicit guidance for FY27:

1. EBITDA margin is expected to be in the 11 to 13 percent band for the full year, while acknowledging quarterly volatility may persist.

2. Volume growth guidance is 12 to 15 percent.

3. Capex guidance is INR200 crore to INR210 crore, covering maintenance capex, debottlenecking at select plants, storage upgrades and Bhuj related spending.

The investor takeaway

Prince Pipes entered FY26 in a volatile operating environment and exited with stronger profitability, a materially improved working capital cycle, and record Q4 volumes. The call’s central message was that the company is prioritizing sustainable market share and channel health over short-term inventory gains, while pushing harder on retail penetration and value-added product expansion.

The next 12 months will likely be judged on three measurable markers already laid out by management: delivery of 11 to 13 percent EBITDA margin on an annual basis, maintaining 12 to 15 percent volume growth, and reducing receivables days further. Alongside these, the pace at which Aquel scales toward the breakeven quarterly revenue band of INR20 crore to INR25 crore will be important to monitor.