Prince Pipes & Fittings Ltd Management Discussions

GLOBAL ECONOMY

The global economy demonstrated resilience through 2025, supported by strong technology-driven investment, easing trade tensions, and accommodative financial conditions. Earlier forecasts had envisaged steady global growth of around 3.3% in 2026, underpinned by robust private-sector adaptability and momentum in high-tech sectors, particularly artificial intelligence (AI) and digital investments. However, this positive trajectory was moderated during 2026 due to evolving geopolitical developments, which interrupted the pace of expansion and introduced greater variability in growth across regions.

In its latest assessment, the International Monetary Fund (IMF) revised global growth projections to 3.1% for 2026 and 3.2% for 2027, reflecting a modest slowdown from prior expectations. The moderation primarily reflects the impact of geopolitical tensions and associated disruptions in energy markets, which offset earlier growth drivers such as easing financial conditions and continued investment in technology. Growth remains uneven across geographies, with emerging markets continuing to contribute meaningfully while advanced economies exhibit moderate expansion levels.

Global inflation trends have also evolved during the year. After a period of steady moderation, inflation is now expected to increase to approximately 4.4% in 2026 before easing to 3.7% in 2027, largely reflecting higher energy and commodity prices. Commodity markets, particularly energy, have played a key role in shaping macroeconomic conditions, with oil prices expected to average around $75 - $86 per barrel in 2026 under the base scenario. At the same time, improved supply chains and stabilizing demand have supported a gradual normalization in price movements across non-energy sectors.

Global trade growth, which had shown resilience in recent periods, is expected to moderate in the near term. Trade volumes are projected to grow by approximately 2.8% in 2026 with a recovery to 3.8% in 2027, reflecting continued adjustments in global supply chains and evolving trade patterns. Services trade and technology-driven exports remain key structural growth drivers, particularly across Asia, helping sustain cross-border economic activity despite slower goods trade momentum.

Outlook

Looking ahead, the global economy is expected to maintain a steady but moderate growth trajectory, supported by sustained investment in technology, gradual normalization of inflation, and stabilization in global trade dynamics. The IMFs baseline scenario assumes continued global growth of around 3.1% - 3.2% over the near term, with improving momentum as supply conditions normalize and investment activity remains resilient.

Source:

1. https://www.imf.org/en/publications/weo/issues/2026/04/14/world-economic-outlook-april-2026

2. https://www.imf.org/en/publications/weo/issues/2026/01/19/world-economic-outlook-update-january-2026

https://www.reuters.com/business/imf-cuts-growth-outlook-warns-potential-global-recession-if-iran-war-worsens-2026-04-14/

INDIAN ECONOMY

The Indian economy sustained its strong growth trajectory during FY 2025-26, underpinned by robust macroeconomic fundamentals, policy continuity, and broad-based expansion across key sectors. According to official estimates, real GDP growth for FY 2025-26 stands at 7.7%, reinforcing Indias position as one of the fastest-growing major economies globally. This growth has been driven by strong performance in the services, manufacturing, and construction sectors, reflecting increased industrial activity and a widespread recovery across the economy.

Domestic demand continued to act as the primary engine of growth, supported by robust private consumption and increasing investment activity. Private consumption grew by approximately 7.0%, while gross fixed capital formation expanded by 7.8%, reflecting improved investment sentiment and sustained public capital expenditure. The Governments continued emphasis on infrastructure development, including roads, railways, urban infrastructure, irrigation, and water supply—has created significant demand across downstream industries. This has directly benefited the plastic pipes industry, where demand is closely linked to housing development, irrigation expansion, and water management systems.

Inflation remained well-contained for most of FY26, with average CPI inflation moderating significantly due to lower food and fuel prices. Official data indicate that headline inflation averaged around 1.7% during April-December 2025, marking one of the lowest periods of inflation in recent years. However, recent global developments, particularly rising energy prices, have led to a rebound in inflation expectations. The Reserve Bank of India has accordingly projected inflation to trend higher in FY27, with estimates around 5.0%-5.1%, indicating gradual normalization in price levels.

Fiscal policy remains focused on sustaining growth through continued capital expenditure while progressing along a path of fiscal consolidation. The Union Budget 2026-27 projects total expenditure growth of 7.7%, with a strong emphasis on infrastructure, housing, water supply, and urban development. The fiscal deficit is targeted at 4.3% of GDP, reflecting a calibrated and responsible fiscal approach. Notably, increased allocations toward programs such as Jal Jeevan Mission, housing schemes, and urban development initiatives are expected to further drive demand for piping solutions, accelerating the shift toward organized and durable plastic piping systems.

Outlook

The outlook for the Indian economy remains positive, with growth expected to moderate to around 6.8%–7.2% in FY27 as per official projections, reflecting normalization from a higher base and evolving global conditions. The Reserve Bank of India has similarly projected growth at around 6.9% for FY27, supported by strong domestic demand, investment activity, and policy support. Continued focus on infrastructure development, water management, sanitation, and housing is expected to sustain demand across end-user industries. For the plastic pipes industry, these structural drivers provide a stable foundation for medium-term growth, supported by rising urbanization, increased irrigation coverage, and expanding government-led infrastructure initiatives.

Source:

1. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2219907&reg=3&lang=2

2. https://www.mospi.gov.in/uploads/latestReleases/latest_release_1768213461321_53cd35fd-1bbc-4b43-b92d-8fb67474ee74_Press_Release_of_CPI_for_December_2025.pdf

3. https://prsindia.org/files/budget/budget_parliament/2026/Union_Budget_Analysis-2026-27.pdf

4. https://www.icicipruamc.com/blob/emailmedia/mutualfund/Union%20Budget%202026-27-1.pdf

https://www.indiabudget.gov.in/economicsurvey/doc/Infographics%20English.pdf

INDUSTRY OVERVIEW

INDIAN PLASTIC PIPES AND FITTINGS MARKET

Indias plastic pipes market is on a strong structural growth path, supported by increasing infrastructure investments, rapid urbanization, and a growing emphasis on efficient water management. Moreover, Indias per capita consumption of plastic pipes remains significantly below global averages, highlighting substantial untapped potential and a long runway for growth.

This expansion is underpinned by the widespread use of PVC (Polyvinyl Chloride) pipes across diverse applications such as water supply, sewage, drainage, and irrigation. PVC pipes continue to gain preference over traditional materials like iron and concrete due to their durability, corrosion resistance, cost efficiency, and ease of installation. Their versatility and performance advantages make them an essential component in modern infrastructure development across both urban and rural landscapes.

Government initiatives continue to act as a key catalyst for industry growth. Programs such as "Housing for All," the "Smart Cities Mission," and AMRUT are driving sustained investments in residential, commercial, and urban infrastructure. These initiatives are significantly enhancing water supply and wastewater management systems, thereby creating strong and consistent demand for efficient piping solutions across the country.

Indias rapid urbanization further reinforces this demand momentum. The expansion of urban centers and the development of new infrastructure require robust water distribution, drainage, and sewage systems. PVC pipes are increasingly being adopted in these projects due to their superior lifecycle economics and operational efficiency. Additionally, the steady growth in the real estate sector, across both residential and commercial segments, continues to drive demand for reliable plumbing and sanitation solutions.

The agricultural sector represents another critical growth driver, particularly as the country focuses on improving water-use efficiency and crop productivity. The increasing adoption of advanced irrigation techniques, including drip and sprinkler systems, has accelerated demand for PVC and HDPE pipes. These solutions provide cost-effective and efficient water management, aligning with the broader objective of sustainable agriculture and optimized resource utilization.

At the same time, rising awareness around hygiene and sanitation, particularly in the post-pandemic environment, has led to increased investments in plumbing and waste management infrastructure. Government initiatives such as the Swachh Bharat Mission have significantly enhanced sanitation standards, driving the need for dependable piping systems. PVC pipes, owing to their leak-proof structure, resistance to corrosion, and low maintenance requirements, have become a preferred choice for both water supply and sewage applications.

Rural infrastructure development has also emerged as a significant contributor to market growth. Initiatives such as the Jal Jeevan Mission, aimed at providing functional tap water connections to rural households, are expanding the addressable market considerably. The governments ongoing focus on strengthening rural water supply and sanitation infrastructure is expected to support sustained demand for piping solutions in these regions.

While the long-term growth outlook remains robust, the industry encountered a relatively challenging operating environment in

Prince Pipes and Fittings Limited

FY2026. Demand across certain end-user segments remained subdued due to macroeconomic pressures, project delays, and moderated government spending. Additionally, volatility in PVC resin prices and elevated input costs impacted industry margins, posing near-term challenges.

Nevertheless, the sector continues to benefit from a supportive demand environment driven by a strong housing cycle, gradual recovery in capital expenditure, and ongoing policy focus on infrastructure development. Although raw material price fluctuations and supply chain constraints may persist, the structural drivers underpinning industry growth remain firmly intact.

Source:

1. https://www.globenewswire.com/news-release/2025/01/23/3014431/28124/en/India-7-4-Bn-PVC-Pipes-Market-Analysis-Competitive-Landscape-Forecasts-Opportunities-2024-2030.html

2. https://www.techsciresearch.com/report/india-plastic-pipes-market/16656.html

3. https://www.researchandmarkets.com/reports/6035091/india-pvc-pipes-market-region-competition?utm_source=GNE&utm_medium=PressRelease&utm_code=q9kqf4&utm_campaign=2031949+-+India+%247.4+Bn+PVC+Pipes+Market+Analysis%2c+Competitive+Landscape%2c+Forecasts+%26+Opportunities%2c+2024-2030&utm_exec=chdomspi

INDIAN BATH & SANITARYWARE MARKET

Indias sanitary ware market is on a steady growth trajectory, supported by rapid urbanization, rising disposable incomes, and increasing awareness of hygiene and sanitation. Government-led initiatives such as the Swachh Bharat Abhiyan and the Smart Cities Mission continue to play a pivotal role in strengthening sanitation infrastructure and improving living standards, thereby underpinning sustained demand for sanitary solutions across urban and semi-urban markets.

The industry is also undergoing a structural shift, with evolving consumer preferences increasingly favoring products that combine functionality, durability, and aesthetic appeal. In addition, growing exposure to global design trends and rising lifestyle aspirations are accelerating the transition toward premium and technologically advanced sanitary ware. As a result, manufacturers are focusing on innovation, portfolio expansion, and product differentiation to effectively address changing customer expectations.

Key Market Trends

- Growing Demand for Smart and Touchless Sanitary Ware

There is a growing inclination toward smart and touchless sanitary solutions, driven by heightened focus on hygiene, convenience, and automation. Products such as sensor-based faucets, automatic flushing systems, self-cleaning toilets, and voice-enabled fixtures are witnessing increased adoption across residential, commercial, and hospitality segments.

This trend has gained further traction in the post-pandemic environment, as both consumers and institutions prioritize contactless solutions to enhance hygiene standards. Consequently, manufacturers are increasingly integrating IoT-enabled features into their product offerings, particularly targeting premium segments where demand for technologically advanced solutions is more pronounced.

- Sustainable and Water-Efficient Sanitary Solutions

Sustainability is emerging as a key theme in the sanitary ware industry, driven by growing concerns around water scarcity and environmental impact. Demand for water-efficient products such as dual-flush toilets, low-flow faucets, and waterless urinals is steadily increasing, as consumers and developers seek to optimize water usage without compromising performance.

Furthermore, the increasing adoption of green building standards such as LEED and GRIHA is encouraging the integration of eco-friendly sanitary solutions across residential and commercial developments. This alignment between regulatory support and environmental awareness is expected to drive sustained growth in sustainable product categories.

Rise of Customization and Aesthetic Bathroom Solutions

Consumer preferences are increasingly shifting toward customized and design-led bathroom solutions, reflecting a broader focus on lifestyle and interior aesthetics. There is a growing demand for sanitary ware in contemporary finishes such as matte black, metallic tones, and pastel shades, moving beyond traditional designs.

Simultaneously, the increasing adoption of modular bathroom concepts, particularly in urban areas with space constraints, is driving demand for compact, multifunctional, and wall-mounted fixtures. This trend is fostering innovation within the industry and enabling manufacturers to offer differentiated solutions that combine functionality with visual appeal.

- Expansion of Online Retail and Digital Showrooms

The rapid expansion of digital channels and e-commerce platforms is transforming the sanitary ware buying journey in India. Consumers are increasingly leveraging online platforms to explore product offerings, compare specifications, and make informed purchase decisions, supported by convenience and wider product availability.

In response, industry players are investing in digital capabilities such as virtual showrooms, augmented reality (AR)-based visualization tools, and AI-driven recommendations. These technologies are enhancing customer engagement and improving the overall buying experience. With increasing internet penetration across Tier 1 and Tier 2 cities, digital platforms are expected to play a critical role in driving future market growth.

Source:

1. https://www.techsciresearch.com/report/india-sanitary-ware-market/17359.html

COMPANY PROFILE

Prince Pipes and Fittings Limited has established itself as one of Indias leading integrated piping solutions providers, supported by a legacy of over four decades. Since its inception, the Company has played a pivotal role in the evolution of the domestic pipes and fittings industry, delivering reliable and innovative solutions across key end-user segments such as plumbing, agriculture, borewell, and sewerage and underground drainage systems. Its diversified product portfolio—marketed under the well-recognized brands Prince Piping Systems and Trubore—spans five major polymer categories: CPVC, UPVC, HDPE, PPR, and LLDP, enabling the Company to address a broad spectrum of application requirements.

MISSION

Our mission is to bring a revolution in the plastic piping industry through innovative solutions that will create profitable growth and benefit our customers and the society at large.

Building on its strong foundation, Prince Pipes is actively pursuing new growth avenues to strengthen its market positioning and future readiness. The Company is strategically expanding into high-potential adjacencies, including modern plumbing solutions, bathware, and water storage tanks. This calibrated expansion is aimed at enhancing product diversification, deepening consumer engagement, and creating a more resilient and comprehensive business model.

The Companys manufacturing capabilities are reinforced by a well-distributed network of nine advanced production facilities located at Athal (Dadra & Nagar Haveli), Dadra, Haridwar, Kolhapur, Chennai, Jaipur, Sangareddy, Begusarai, and Bhuj. This extensive manufacturing footprint enables efficient servicing of demand across geographies, while maintaining high standards of quality and operational efficiency. Complementing this is a robust distribution ecosystem comprising over 1,500 channel partners nationwide, ensuring strong market penetration and timely product availability.

Prince Pipes sustained growth trajectory is anchored in its steadfast commitment to quality, reliability, and innovation. The Company continues to align itself with evolving market dynamics and customer preferences by strengthening its supply chain capabilities, advancing sustainability initiatives, and optimizing capital utilization. Through these focused efforts, Prince Pipes remains well-positioned to deliver consistent stakeholder value and reinforce its standing as one of the fastest-growing players in the Indian piping industry.

VISION

To be an acknowledged leader in the Indian plastic piping industry by exceeding customers expectations and maximizing the bottom line for all our stakeholders.

Key Financial Highlights

(Rs in Millions)

*exceptional item for FY26 represents Rs2.05 cr net of tax towards estimated increase in provision for employee benefits arising from the implementation of the New Labour Code

Note: The significant changes in key financial ratios and Return on Net Worth, compared with the immediately preceding financial year, along with detailed explanations for such changes, are disclosed in the Notes to the Financial Statements.

Balancing Risk and Opportunities

Sustainability

At Prince Pipes, our Commitment to Environmental, Social, and Governance (ESG) principles goes far beyond just numbers. These principles actively shape our daily operations, purchasing decisions, business strategies, and our fundamental role as a responsible corporate citizen. We are continuously expanding and deepening our focus on ESG to create a more positive impact by providing opportunities, manufacturing responsibly, and approaching every aspect of our business with strong conscientiousness. Essentially, we prioritize ESG through sustained, environment-specific programs that are integrated into our core business.

- Carbon emissions have been reduced by 35.46% (MJ/MT production) since FY-17

- For FY 2026, 22% of the total energy requirement was met through renewable energy sources

Environment

At Prince Pipes, we are deeply committed to being responsible stewards of our natural environment. Our efforts are centred on conserving natural resources, minimizing pollution, protecting biodiversity, and ensuring a sustainable future for coming generations. We are proactively taking decisive steps to address the visible impacts of climate change, which includes increasing our adoption of renewable energy and working towards carbon neutrality. Furthermore, we are enhancing our water recycling efforts and maintaining stringent quality standards, which has earned us multiple safety awards. Every business decision we make consistently prioritizes sustainable development.

Social

Prince Pipes and Fittings is deeply committed to social responsibility, extending its efforts towards both the broader community and vulnerable populations. The Company focuses on creating inclusive and resilient communities through interventions in water security, sustainable livelihoods, education, healthcare and integrated community development. During the fiscal year, the Company continued and expanded its CSR initiatives in collaboration with its implementation partners, with a focus on strengthening access to essential services, building community capabilities and creating sustainable social impact. Some of the key initiatives along with their implementation partners undertaken during the fiscal year are as follows:

- Ambuja Foundation: In Chomu and Jobner, Rajasthan, initiatives focused on safe drinking water, groundwater recharge and efficient irrigation, while in Haridwar, Uttarakhand, the Company supported integrated community development through waste management, plantation, street lighting, Smart School infrastructure and health awareness.

- Mahita Organisation: In Sangareddy, Telangana, the initiative focused on education, agriculture and womens empowerment through scholarships, career counselling, farmer training and women entrepreneurship programmes.

- Learning Link Foundation: In Begusarai, Bihar, the Gyan Shakti Whole School Transformation Programme strengthened foundational literacy and numeracy through teacher capacity building, learning materials and school infrastructure improvements.

Empower Foundation: In Begusarai, Bihar, the Swasthya Sathi Programme improved access to preventive healthcare through health camps, medical screening, tele-consultations, health insurance support and awareness programmes.

Governance

At Prince Pipes, our commitment to strong values and ethical business conduct is unwavering. We uphold high standards of governance that guide us in achieving robust, balanced, and sustainable growth for all stakeholders. Our experienced Board of Directors, supported by robust risk management and compliance processes, plays a pivotal role in ensuring the highest standards of governance and disciplined oversight across all our corporate activities.

People

At Prince Pipes, our people are the cornerstone of our progress. Our comprehensive approach to human capital management encompasses employee development, safety, leadership training, and family well-being. Our policies are designed to foster an environment of operational democracy, ensuring our employees feel heard and empowered to take ownership in their roles.

Key aspects of our HR policy include:

- Skill Enhancement Programs: We regularly conduct specialized training programs, including Six Sigma, to enhance employee skills and support career development.

- People-Centric Culture: We prioritize talent attraction, nurturing, and retention. Inclusivity, diversity, and transparency are integral to our organizational culture.

- Human Rights: We respect and promote human rights, conducting due diligence to prevent adverse impacts from our business activities.

- Safe and Hygienic Workplace: Our workplace environment upholds employee dignity, safety, and well-being. We comply with statutory provisions related to health and safety.

- Training Opportunities: We provide internal and external training to upskill the Companys 1,913 employees, contributing to organizational vision and growth.

- Employee engagement and welfare initiatives include health-related programs such as weight loss competitions, health webinars, yoga and meditation sessions, and emotional health discussions with experts.

Health, Wellness, and Safety

Our unwavering commitment to workplace safety is paramount. Were proud to report no incidents that could lead to legal actions, compensation claims, increased insurance premiums, reduced productivity, or reputational damage. We believe that responsible health and safety practices are fundamental to our long-term sustainability.

We prioritize cultivating a work environment that emphasizes safety awareness at all levels:

- Occupational Health and Safety (OHSMS): Our OHSMS certification process, supplemented by plant Safety Committees, governs safety practices. Specially trained safety professionals and line management contribute to our safety initiatives.

- Safety Performance Metrics: We measure safety performance using metrics such as Lost Time Injury (LTI) and Accident-Free Days (AFD), benchmarked against global industry standards.

- Behaviour-Based Safety (BBS): Our BBS initiative fosters a zero-accident culture by identifying hidden habits and environmental factors. Employees actively participate in hazard identification and risk assessment.

- Employee Training: We provide regular safety and skill upgradation training, including:

- Daily Toolbox Talks (TBT) on relevant topics

- First aid training

- BBS training by external experts

- EHS awareness training for new employees

- Hazard Identification and Risk Assessment (HIRA) training

- Safety auditor training

- Practical training on fire safety equipment

- Quarterly mock drills

- Environment and safety awareness events, including tree plantation drives

- Our commitment to safety extends beyond compliance · it is ingrained in our organizational culture

Innovation

Innovation remains a cornerstone of Prince Pipes success, enabling us to achieve strong product differentiation and top-of-mind recall. With a 40-year legacy, our unwavering passion for impacting Indias water infrastructure has been a constant driving force. We take immense pride in our industry leadership, which allows us to understand evolving needs and anticipate future trends effectively.

Leveraging this strength, Prince Pipes consistently introduces new products that align with evolving industry trends, changing customer needs, and international modern technologies in water management. Our commitment to innovation drives sustained investments across our manufacturing capabilities, research and development, information technology, and sustainability initiatives.

As part of our goal to be an end-to-end pipes and fittings solution provider, we continuously enhance our comprehensive product portfolio. Notably, we have recently launched the following products:

- CPVC pipe range under the brand SMARTFIT PLUS

- Engineered for long-term reliability, Prince SmartFit Plus CPVC pipes and fittings deliver unmatched performance and durability

- Crafted from premium-quality raw materials, SmartFit Plus ensures superior strength, durability, and long-lasting efficiency for modern plumbing systems

- Designed for a service life of 25 years, they can withstand temperatures up to 82? C; making them ideal for both hot and cold-water applications

- Water Tanks Range – STOREFIT HYDRA and STOREFIT AQUA

- Storefit Cool is enhanced with Unbreakable Foam Compound (UFC) technology for improved insulation and long-lasting durability, along with a 450 mm wide manhole that allows easy access for cleaning and maintenance

Storefit Hydra features a robust 4-layer construction, where 4D stands for Durable, Defence, Drink Safe, and Dependable, offering superior strength, protection against external contaminants, and consistent performance

Prince Pipes and Fittings Limited

- Advanced low noise PP Drainage Systems – DECILO

- Made from advanced mineral · filled polypropylene, DECILO offers superior strength, durability and chemical resistance, ensuring reliable performance across diverse applications

- Engineered for modern infrastructure, DECILOs three · layer design reduces noise, enhances flow and guarantees long-term efficiency

Crafted with precision this low noise drainage systems sets a new benchmark in quality and innovation

Internal Control

Prince Pipes operates with a robust internal control system, underpinned by well-documented procedures across all corporate functions. These controls provide evidence-based assurance of our operational effectiveness, efficiency, sound financial management, and adherence to legal requirements. Our policies and procedures are regularly updated under the supervision of the Internal Auditor, ensuring all processes and controls align with industry standards and regulations. The Board and the Audit Committee actively oversee the adequacy of these internal controls, monitoring the implementation of internal audit recommendations through regular compliance reports. Furthermore, independent auditors have verified the adequacy of our reporting, reinforcing our commitment to strong governance.

Cautionary Statement

Certain Statements found in the Management Discussion and Analysis may constitute "Forward Looking Statements" within the meaning of applicable securities laws and regulations. These forward-looking statements involve known and unknown risks, uncertainties, and other factors that are difficult to predict, and which may cause our actual results, performance, or achievements to be different from any future results, performance, and achievements expressed or implied by these statements. Following the Code of Corporate Governance approved by the Securities and Exchange Board of India, shareholders and readers are cautioned that in the case of data and information external to the Company, no representation is made on its accuracy or comprehensiveness though the same are based on sources thought to be reliable. The Company does not undertake to make any announcement in case any of these forward-looking statements become materially incorrect in the future or any update made thereon.