Prakash Industries Limited has announced that its Board of Directors approved availing an inter-corporate loan of ₹75 crores from Prakash Pipes Limited (PPL), a promoter group entity, during the board meeting held on December 18, 2025.

Board Meeting Outcomes

The Board of Directors, taking note of the Audit Committee's recommendations, considered and approved the inter-corporate loan arrangement for general corporate purposes and working capital requirements of the company:

Loan Agreement Details

The comprehensive loan arrangement between the two promoter group entities includes specific terms and conditions:

Purpose and Utilization

The borrowed funds will be utilized for general corporate purposes and working capital requirements of Prakash Industries Limited. This financial arrangement aims to support the company's operational needs and strategic initiatives.

Related Party Transaction Compliance

The transaction qualifies as a Related Party Transaction as both entities are part of the same promoter group, though there is no direct shareholding between them:

Regulatory Disclosures

The company has made the necessary disclosures pursuant to Regulation 23 and 30 of the SEBI (LODR) Regulations 2015. The information has been communicated to both stock exchanges where the company is listed - NSE (Symbol: PRAKASH) and BSE (Code: 506022). The loan agreement does not provide any special rights such as board appointment rights, share subscription preferences, or capital structure restrictions.

Prakash Pipes Limited , a leading manufacturer of PVC pipes and flexible packaging solutions, has announced its financial results for the second quarter ended September 30, 2025. The company reported a net profit of ₹9.00 crore on net sales of ₹181.00 crore for the quarter, demonstrating resilience in a challenging market environment.

Financial Highlights

For the quarter ended September 30, 2025, Prakash Pipes Limited achieved the following financial results:

The company's performance in Q2 FY2026 shows a decrease in net sales and profitability compared to the same quarter in the previous year. However, Prakash Pipes has maintained a positive bottom line despite challenging market conditions.

Segment Performance

PVC Pipes & Fittings Division

The PVC Pipes & Fittings division reported strong volume growth:

• Sales volume reached 10,659 MT in Q2 FY2026, compared to 8,980 MT in Q2 FY2025
• Revenue for the quarter stood at ₹94.39 crore
• Segment profit before interest and tax was ₹11.30 crore

The division achieved higher sales volume despite the impact of a prolonged monsoon on demand. This growth is attributed to the company's strategic marketing approach.

Flexible Packaging Division

The Flexible Packaging division maintained stable performance:

• Sales volume was 4,033 MT in Q2 FY2026, compared to 4,034 MT in Q2 FY2025
• Revenue for the quarter was ₹86.60 crore
• Segment profit before interest and tax reached ₹1.96 crore

The division is focusing on diversifying its product range and offering customized solutions to drive growth. It is also emphasizing exports to maintain sales volume and margins.

Future Outlook

Prakash Pipes Limited has expressed optimism for the second half of FY2026:

1. The company expects demand for PVC pipes to pick up from agriculture and construction sectors.
2. Recent GST reforms are anticipated to boost consumption, potentially leading to strong demand for flexible packaging products.
3. The Flexible Packaging Division plans to continue its focus on exports to maintain sales volume and margins.

Corporate Updates

The Board of Directors has approved shifting the company's registered office within Amritsar city limits, effective December 1, 2025. This move is expected to streamline operations and improve administrative efficiency.

Kanha Agarwal, Managing Director of Prakash Pipes Limited, stated, "Despite the challenges posed by prolonged monsoons affecting demand, our PVC Pipes division has shown remarkable resilience with increased sales volumes. We are optimistic about the demand recovery in the second half of the fiscal year and remain committed to our growth strategies in both our business segments."

Prakash Pipes Limited continues to navigate market challenges while focusing on strategic growth initiatives and operational efficiency. Investors and stakeholders will be watching closely to see how the company capitalizes on the expected demand recovery in the coming quarters.