Prince Pipes and Fittings Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Prince Pipes and Fittings Ltd filed with BSE on 11 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Prince Pipes reported Q1 FY27 revenue of Rs 609 crore, up 5% year-on-year, while volumes fell 7% year-on-year to 40,729 metric tons. EBITDA grew 93% year-on-year to Rs 77 crore with margins at 13%, and management attributed the improvement to a better product mix shifting toward plumbing and value-added products like CPVC and PPR. Management said the temporary suspension of import duty on PVC resin in April caused channel destocking and price volatility, but described a recovery in demand from May and June onward.
Numbers mentioned
Revenue: INR 609 crores (Q1 FY27)
p. 4
“Revenue from operation in this quarter stood at INR 609 crores, a growth of 5% Y-o-Y.”
Anand Gupta, page 4 of the filed PDF · View the filing
Volume: 40,729 metric tons (Q1 FY27)
p. 4
“Our volumes for the quarter stood at 40,729 metric tons, degrew by 7% Y-o-Y.”
Anand Gupta, page 4 of the filed PDF · View the filing
EBITDA: INR 77 crores (Q1 FY27)
p. 4
“EBITDA for the quarter stood at INR 77 crores, a growth of 93% Y-o-Y, while margins stood at 13%, registering a 600 basis point growth.”
Anand Gupta, page 4 of the filed PDF · View the filing
Profit after tax: INR 34 crores (Q1 FY27)
p. 4
“Profit after tax for the quarter stood at INR 34 crores, a growth of 580% Y-o-Y.”
Anand Gupta, page 4 of the filed PDF · View the filing
PAT margin: 6% (Q1 FY27)
p. 4
“PAT margin for the quarter stood at 6%.”
Anand Gupta, page 4 of the filed PDF · View the filing
Working capital days: 71 days (Q1 FY27)
p. 4
“Working capital days stood at 71 days in Q1 FY '27.”
Anand Gupta, page 4 of the filed PDF · View the filing
Receivable days: 40 days (as of 30th June 2026)
p. 4
“Receivable days stood at 40 days, whereas inventory days stood at 100 days as of 30th June 2026.”
Anand Gupta, page 4 of the filed PDF · View the filing
Bathware revenue: INR 13 crores (Q1 FY27)
p. 5
“So the revenue for Bathware segment is at INR 13 crores. EBITDA is minus INR 5 crores, and there is no inventory gain for this quarter.”
Anand Gupta, page 5 of the filed PDF · View the filing
Gross debt: around INR 120 crores (as of 30th June 2026)
p. 6
“I think the gross debt is around INR 120 crores, kind of, including long-term and short-term both.”
Anand Gupta, page 6 of the filed PDF · View the filing
Capacity utilization: around 52% - 53% (current)
p. 14
“So as of now, we are at around 52% - 53% kind of utilization.”
Anand Gupta, page 14 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Volume growth — 12% to 15% · FY27
stated firmly by Nihar Chheda
p. 5
“No. We will stick to our guidance on growth going forward.”
Nihar Chheda, page 5 of the filed PDF · View the filing
EBITDA margin — 11% to 13% · FY27
stated firmly by Nihar Chheda
p. 9
“We have not guided at 14% to 15%. Our guidance is 11% to 13% kind of operating margin.”
Nihar Chheda, page 9 of the filed PDF · View the filing
Inventory days — 65 to 75 days · by end of September quarter
stated firmly by Nihar Chheda
p. 14
“We will be back to our stated guidance by end of September quarter.”
Nihar Chheda, page 14 of the filed PDF · View the filing
Debtor days — 30 days · next couple of years
stated as an aspiration by Nihar Chheda
p. 14
“So debtor days eventually has to go in the next couple of years towards 30 days is what my target for debtor days is.”
Nihar Chheda, page 14 of the filed PDF · View the filing
ROCE — 15% to 20%
stated as an aspiration by Nihar Chheda
p. 13
“See, it is historically seen, apart from the past few years, 15% to 20%, sometimes even higher than that has been done.”
Nihar Chheda, page 13 of the filed PDF · View the filing
Bathware revenue run rate — INR 25 crores · December quarter
stated conditionally by Nihar Chheda
p. 12
“So in the December quarter, we should be doing INR 25 crores, which will be very close to breakeven.”
Nihar Chheda, page 12 of the filed PDF · View the filing
Capacity utilization — around 60%
stated conditionally by Anand Gupta
p. 14
“And what we have guided is 13% to 15% of growth in this year, which translates to, if the capacity is static, then we will reach to around 60% of utilization.”
Anand Gupta, page 14 of the filed PDF · View the filing
EBITDA margin — 11% to 13% · medium term
stated firmly by Nihar Chheda
p. 12
“I think for now, if I look at medium term, I think 11% to 13% kind of operating margin with industry-leading growth should be the focus.”
Nihar Chheda, page 12 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said there was no inventory gain this quarter and declined to speculate on future inventory gains or losses, citing the MIP as a price floor reducing distributor uncertainty.
Answered by Nihar Chheda
Asked by Shravan Shah: Whether the significant gross margin improvement was due to inventory gains and what to expect in Q2 given rising PVC prices.
p. 5
“I will not speculate on inventory gain or loss going forward. But I think the good part is that now there is less uncertainty for distributors to be scared of destocking because they are scared of prices to fall further.”
Nihar Chheda, page 5 of the filed PDF · View the filing
Management said April was a washout due to channel destocking, while May, June, and July showed a strong recovery.
Answered by Nihar Chheda
Asked by Shravan Shah: Whether the 7% volume degrowth was concentrated in April and if growth trends have since recovered.
p. 5
“So April was a blip because of the one-way decrease in PVC prices and high level of channel inventory as of March 31. But if I look at June, July, again, we are back on the growth trajectory.”
Nihar Chheda, page 5 of the filed PDF · View the filing
Management attributed the improvement to a better product mix skewed toward plumbing and higher-value polymers like CPVC, PPR and PP, plus operating leverage from better realizations.
Answered by Nihar Chheda
Asked by Sneha: Why margins improved despite the volume drop and how sustainable this is.
p. 6
“So one is agri versus building material and second is PVC versus CPVC, PP, PPR. So both product mix improvements at a segmental and at a polymer level has helped as far as gross margin is concerned.”
Nihar Chheda, page 6 of the filed PDF · View the filing
Management said price increases are passed on in a phased manner over one to two weeks.
Answered by Nihar Chheda
Asked by Sneha: How much of the recent CPVC price hike has been passed on to the channel.
p. 7
“I think we are passing it on in a phase-wise manner. So usually, we give 1 to 2 weeks to the channel.”
Nihar Chheda, page 7 of the filed PDF · View the filing
Management said that was a one-time tactical response to a sharp raw material price swing and is not being continued.
Answered by Nihar Chheda
Asked by Sunil Jain: Whether the company is continuing to sacrifice inventory gains to gain market share as it did last quarter.
p. 11
“No, we are not continuing that. I think that was onetime because there was a very sharp increase in raw material prices in March quarter.”
Nihar Chheda, page 11 of the filed PDF · View the filing
Management said historical ROCE levels of 15% to 20% or higher are achievable again as volumes recover and capital allocation tightens.
Answered by Nihar Chheda
Asked by Sushant Soni: What is management's view on a sustainable ROCE for the business given reduced capex needs.
p. 13
“So with volumes coming in, stricter capital allocation that we have done that in the past, and there's no reason why we can't do it again.”
Nihar Chheda, page 13 of the filed PDF · View the filing
Management attributed the increase to supply insecurity and unplanned sales loss from the 7% volume degrowth, and expects correction by end of September quarter.
Answered by Nihar Chheda
Asked by Sushant Soni: Why inventory days rose to 100 versus the stated guidance of 65-75 days.
p. 14
“One, there was supply insecurity during the war time. And second, we did not expect 7% kind of a degrowth. So obviously, there was a sales loss.”
Nihar Chheda, page 14 of the filed PDF · View the filing
Risks flagged
Sharp correction in PVC resin prices following temporary suspension of import duty caused destocking across channel partners.
p. 3
“prices saw a sharp correction from early April following the temporary suspension of import duty on PVC resin till June '26, which introduced fresh uncertainty into the market and resulted in destocking across channel partners across the industry.”
Nihar Chheda, page 3 of the filed PDF · View the filing
Higher cost cargo inventory coinciding with a price correction could affect near-term margins.
p. 7
“Actually I would not like to comment on inventory gain or loss right now because we also have -- while the MIP is in place, you also have a higher cost cargo coming in because we did see a correction in month before this month.”
Nihar Chheda, page 7 of the filed PDF · View the filing
Smaller unorganized players face raw material insecurity amid price volatility.
p. 11
“My view is that larger players continue to consolidate because in the volatility, a lot of the raw material -- a lot of the smaller players face raw material insecurity.”
Nihar Chheda, page 11 of the filed PDF · View the filing
Company's debtor days remain higher than peers.
p. 14
“Compared to my peers, my debtor days is still higher, and we recognize and acknowledge that.”
Nihar Chheda, page 14 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.