PVC Pipe Sector to Grow 10–11% in FY26 on Strong Demand: CRISIL

India’s organised PVC pipes and fittings sector is set to witness a robust recovery in FY26, with revenue growth projected at 10–11%, according to CRISIL Ratings. This follows a subdued performance in the previous fiscal, which saw flat revenue growth and a 130-basis-point decline in operating margins due to volatile resin prices and dealer destocking. The rebound is being driven by strong demand from government infrastructure schemes such as the Jal Jeevan Mission and Pradhan Mantri Awas Yojana, which have received a significant increase in budgetary allocations. Additionally, the imposition of provisional anti-dumping duty (ADD) on imported PVC resin has helped stabilise input costs and reduce pricing volatility. CRISIL’s analysis of 16 major PVC pipe manufacturers, accounting for ₹30,000 crore in revenue (around two-thirds of the organised sector), indicates that higher capacity utilisation and dealer restocking will support an improvement in operating margins to 13.5–14% this fiscal. Despite a planned capital expenditure of ₹2,100 crore, the sector is expected to maintain strong cash flows, with a debt-to-EBITDA ratio below 0.35x and interest coverage above 22x. Around 75% of the sector’s revenue is driven by irrigation and water supply projects, with additional support from the real estate and urban infrastructure segments. With improved profitability, lower inventory levels, and stable resin prices, the sector is well-positioned for sustained growth in FY26. Disclaimer: PolyMart does not offer guarantees regarding the accuracy, reliability, or completeness of the information provided on its platform. Users are advised to independently verify any data before relying on it for decision-making purposes.Source: Crisil