Building Materials – Apr-Jun’26 Earnings Preview – Healthy Realization to Drive Margin Expansion
Published on 02 Jul 2026
In Q1FY27, building material companies under coverage are expected to report healthy revenue growth of 15.7% YoY, driven by the pipes segment. EBITDA margin is likely to expand by ~210bps, supported by rising PVC resin prices, enabling larger players to pass on costs, price hikes across tiles & bathware segments, and cooling of chemicals price. Plastic pipes sector is anticipated to deliver soft volume growth of 5.4% YoY. Tiles sector is likely to experience single-digit growth. In the wood panel segment, CPBI is expected to see good revenue growth, led by the plywood segment (contributes 55% to the topline). We expect coverage companies to register sales/EBIDTA/PAT growth of 15.7%/35.9%/46.0% YoY, and tiles & bathware players to outperform in the building materials space.
