Building Materials – Jul-Sep’26 Earnings Preview – Pipes in the Lead; Woodpanel Faces Export Headwinds
Published on 06 Oct 2026
Building material companies under coverage are expected to report healthy revenue growth of 16.6% YoY, primarily driven by the pipes and Tiles segment. Margins are likely to expand by ~80bps, supported by rising PVC resin prices, enabling larger players to pass on costs, price hike across Tile & bathware segments. The plastic pipes sector is anticipated to deliver healthy volume growth of 15.6% YoY. Tiles sectors are likely to experience double digit growth. Wood panel segment CPBI is expecting good revenue growth mainly driven from plywood segment (contributes 55% to the topline). We expect coverage companies to register sales/EBIDTA/PAT growth of 16.6%/22.9%/33.4% YoY. We expect Pipes players to outperform in the BM space. Coverage target price changes: As we roll forward our TP to Sep’28E and introduce FY29 numbers, we revise our TP for all the coverage companies. Further, we upgrade our rating for FNXP and CPBI to ‘BUY’ from ‘ACCUMULATE’.
