


Arpan Dwivedi
498 posts












*India PVC & Plastic Piping Sector Thematic Note* Massive rerating on cards *Outlook:* The first nine months of FY26 were highly dislocated for the Indian PVC & plastic-piping sector. A collapse in global PVC resin to ~INR 60/kg in Q3 FY26 triggered extreme channel destocking, forcing manufacturers to absorb mark-to-market inventory losses and compress gross margins. Several market leaders reported meaningful inventory hits (e.g., ~INR 100-120 crore for one large player; INR 18-20 crore for another in Q3), pushing some into PAT erosion. A structural pivot began in January 2026, PVC prices rebounded by ~INR 11 12/kg and China’s decision to curtail PVC export subsidies (effective 1 April 2026) has accelerated channel restocking. The sector is positioned for a sharp sequential margin recovery in Q4 FY26 driven by inventory gains, operating leverage and improving realizations. *Link to the report:* arihantresearch.arihantcapital.com/mumbai_researc…



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