Pipe industry to witness subdued growth in Q1FY26, growth likely to remain below 5%: Nuvama Research

ANI June 24, 2025 253 views

The pipe industry is set for slow growth under 5% in Q1FY26 as agriculture demand lags. Chinese PVC imports may get costlier if manufacturers fail to secure BIS certification. Government delays in releasing Rs 200-250bn payments are stalling projects. While CPVC faces oversupply risks, OPVC could expand fivefold by FY31 if demand holds.

"Q1FY26 is likely to be relatively subdued with value growth likely to be below 5% for the top ten companies" – Nuvama Research
New Delhi, June 24: The pipe industry in the country is expected to witness subdued growth in the first quarter of the financial year 2025-26 (Q1FY26), according to a report by Nuvama Research.

Key Points

1

Agriculture demand weak while building materials perform better

2

Chinese PVC imports may face price hikes without BIS certification

3

Govt delays Rs 200-250bn payments to contractors

4

CPVC oversupply likely by FY29 but OPVC could grow 5x

The report said that the value growth for the top ten companies in the sector is likely to remain below 5 per cent during the quarter.

It said "Q1FY26 is likely to be relatively subdued with value growth likely to be below 5% for the top ten companies".

The report mentioned that the demand trend has been mixed. While the agriculture segment has shown weak demand, the building materials segment has performed better. This mixed demand pattern is one of the reasons behind the expected slow growth in the industry.

The report also provided updates on BIS certification. Several manufacturers from countries like the US, EU, Japan, Taiwan and Korea have obtained approval from the Bureau of Indian Standards (BIS) for PVC resins.

However, not a single Chinese PVC manufacturer has applied for BIS certification. If Chinese manufacturers fail to obtain this certification, the report noted that PVC prices may go up by Rs 5 to 7 per kg due to limited supply.

Chinese PVC products need a BIS (Bureau of Indian Standards) certificate because it's mandatory for certain products imported into India to ensure they meet Indian standards for safety, quality, and reliability. It also reduces the chances of dumping low-quality products by China.

Another concern highlighted in the report is related to government orders. A major challenge is the delayed payments to contractors by various state governments.

The report highlighted that the outstanding payments worth Rs 200-250 billion are yet to be released, which is affecting the pace of government-funded projects in the sector.

On the supply side, the report noted that with several companies planning capacity additions in chlorinated polyvinyl chloride (CPVC), there could be an oversupply situation in the CPVC segment by FY29.

Meanwhile, the oriented polyvinyl chloride (OPVC) industry is currently valued at Rs 16 billion. It has seen acceptance in about 5 to 6 states. If demand continues to grow, the OPVC industry has the potential to reach a market size of Rs 80 billion by FY31, the report said.

Overall, the report outlined that the pipe industry may go through a slow growth phase in the short term, though new product segments offer long-term growth opportunities.

Reader Comments

Here are 6 authentic Indian perspective comments for the pipe industry article:
R
Rahul K.
Not surprised by the slow growth prediction. The real issue is delayed payments from state governments - ₹200-250 billion stuck! How can any industry grow when payments are delayed for years? This affects small contractors the most. 🏗️
P
Priya M.
Good to see BIS certification preventing low-quality Chinese imports. We should focus on 'Make in India' for pipes and building materials. The price increase might hurt short term but will benefit domestic manufacturers in long run. 🇮🇳
S
Sanjay T.
Agriculture segment weakness is concerning. Pipes are crucial for irrigation projects. Maybe govt should prioritize rural water infrastructure spending to boost demand. Kisan Samman Nidhi alone won't solve farm sector problems.
A
Ananya R.
The OPVC growth potential to ₹80 billion is exciting! But why only 5-6 states adopting it? Need better awareness campaigns about new pipe technologies. Builders still prefer traditional materials without understanding long-term benefits.
V
Vikram J.
Mixed report indeed. While CPVC may face oversupply, OPVC shows promise. Industry needs to balance capacity expansion with actual demand. Maybe time for pipe companies to explore export markets more aggressively?
N
Neha P.
The China angle is interesting - no BIS applications from Chinese PVC makers. Shows our quality standards are working as non-tariff barrier. But hope domestic manufacturers step up to fill the gap without excessive price hikes. 🙏

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Your email won't be published


Disclaimer: Comments here reflect the author's views alone. Insulting or using offensive language against individuals, communities, religion, or the nation is illegal.

Tags:
Pipe industry growth Q1FY26 forecast Nuvama Research PVC BIS certification CPVC oversupply OPVC market