After 5-quarter choke, growth flows freer for PVC pipe makers

Resin prices level out and housing demand returns, unclogging earnings channels for industry majors

- RAM PRASAD SAHU

After five quarters of downcast performance, brokerages expect plastic pipe majors to recover in the second half of 2025-26 (FY26). Demand is improving, and polyvinyl chloride (PVC) prices have steadied. Along with these demand and raw material tailwinds, the proposed levy of anti-dumping duties could further aid domestic manufacturers.

Although the April-June quarter (Q1) of FY26 was soft, brokerages see the sector's outlook brightening.

Another catalyst could be a reduction in the goods and services tax, which currently stands at 18 per cent for pipe fittings.

These drivers have already led to a rally in stock prices. Prince Pipes and Fittings gained 5 per cent, Finolex Industries rose 3 per cent, Astral Pipes advanced 2 per cent, and Supreme Industries added about 0.5 per cent.

The immediate focus is on the likely anti-dumping duty. The Directorate General of Trade Remedies has issued its final finding on PVC resin imports from China, Indonesia, Japan, South Korea, Taiwan, and the US, paving the way for a duty that would narrow the pricing gap between imported and domestic resin.