Demand recovery bet after April collapse; margin guidance conservative

157.5k tons vs 183.8k YoY = -14%. Revenue +4% despite volume fall, reflecting price recovery.

Q1 piping -15% volume; to hit 12–13% full-year requires 25%+ in remaining 9 months after worst April.

Management explicitly denied inventory swing despite PVC prices plunging then recovering; margins held at 14.6%.

Q1 OPM 14.6% (vs 11.8% YoY) due to agri/polythene pipes down >50%, while higher-margin packaging/industrial grew in value.

Maintained 12–13% FY27, 15–17% piping despite Q1 -14%. No formal cut, but credibility weakened by April trough.

Prior FY26: guided 14.5–15.5%; FY27: now 14–14.5%. Management cites 'responsible manner,' lower end due to pipe-heavy mix.

April price volatility forced inventory correction across value chain; July showing restocking. Pent-up demand thesis rides on this.

April saw 50%+ volume decline; May and June showed small growth. We are talking for the whole year. July showing excellent growth.

When prices drop, there is no inventory gain. Margin is better because low-margin agri pipes had the biggest volume erosion.

We believe there will be good growth in Q2. Channel inventory is filling up. They have to fill it up to do business.

We are giving guidance on a conservative basis, responsible manner. We don't want to give unnecessary, very rosy picture.

We've already received orders and supplied. Customer is very happy. Based on inquiry and plans by gas companies, we build ₹600 Cr.

Pent-up demand comes up when prices stabilize. Channel destocking means channel gets normalized when prices stabilize.

Same similar to our capacity. Same product mix. 70% capacity utilization for the year.

That Lubrizol can only reply. For your information, Reliance is also coming. Can't predict their pricing.

Lost volume will be recovered and we will have growth in first half. Definitely confident we will have growth.

MIP may give, but nobody stopped them to increase further. Only thing they cannot charge lower than $766. Depends on West Asia supply.

All products except industrial. World market. Prioritize countries with FTAs where government has entered FTA.

Q1 -14% volume creates large bridge. Management confident pent-up demand recovery from Sept; no new data provided.

Q1 at 14.6% due to favorable mix (low-margin pipes down). Full-year guidance assumes return to normal product mix; conservative vs prior FY26 guide (14.5–15.5%).

Bihar 21 acre, Jammu 13 acre; combined capacity 50k+ tons over 2 years. Malanpur for material handling; Pondicherry/Erode acquisitions in progress.

Q1 -14% volume on 12–13% full-year path means 25%+ growth needed in 9 months. April was 'worst', but no structural demand improvement cited beyond restocking.

PVC up ₹9/kg post-MIP; MIP is floor, not ceiling. Polyethylene/PP volatile, crude-linked. Cost pass-through incomplete for non-PVC products.

Gas piping ₹600 Cr is plan-based, orders exist but nascent. Windows ₹220 Cr invested for ₹300–350 Cr revenue; only 5k ton capacity. Composite cylinders 25–35% utilization despite HPCL orders.

April destocking forced >50% volume decline. If prices surge again, channel could reduce orders; pent-up demand recovery not guaranteed.