Prakash Pipes Limited reported mixed results for the quarter ended December 31, 2025, with declining profitability despite volume growth across both business segments. The company announced its financial results through an official press release under Regulation 30, showing net profit fell significantly while operational volumes demonstrated positive momentum.

Financial Performance Overview

The company's financial performance showed considerable pressure during Q3 FY26, with profitability declining across key metrics despite maintaining operational scale. According to the official press release, the company achieved net sales of ₹181 crores with EBITDA of ₹18 crores for the quarter.

Nine Months Performance

The nine-month period reflected similar challenges, with both revenue and profitability under pressure compared to the previous year. The company reported EBITDA of ₹52 crores for the nine-month period.

Segment-wise Performance

Both business divisions demonstrated volume growth despite revenue challenges, indicating pricing pressures in the market.

PVC Pipes & Fittings Division: During the quarter, the division achieved sales volume of 11,068 MT against 10,547 MT in the corresponding quarter of the previous year, showing growth momentum despite market challenges.

Flexible Packaging Division: The division achieved sales volume of 4,329 MT against 4,015 MT in the corresponding quarter of the previous year, demonstrating consistent growth in volumes.

Management Outlook

The company noted that PVC pipe business growth is returning to normalcy as the continuous downward trend in PVC resin prices has been arrested. Management expects good monsoon conditions and favorable economic factors in housing, agriculture, and infrastructure to drive strong demand in upcoming quarters. The flexible packaging division continues expanding its product range, increasing capacities, and offering customized solutions to customers.

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.