Prakash Pipes Limited (PPL) has received approval from both the National Stock Exchange of India (NSE) and the Bombay Stock Exchange (BSE) for the reclassification of Aircon Systems (India) Private Limited from the "Promoter Group" category to the "Public Group" category. The company disclosed this development in a recent filing to the stock exchanges.

Reclassification Details

The reclassification approval, granted on September 4, 2025, comes in response to PPL's initial application submitted on October 26, 2024. Following the reclassification:

• Aircon Systems (India) Private Limited now holds nil shares in Prakash Pipes Limited.
• The post-reclassification shareholding structure remains unchanged:

BSE Warning

In a separate development, BSE issued a warning letter to Prakash Pipes Limited for non-compliance with disclosure requirements. The exchange noted that while the company submitted a physical application for reclassification on October 28, 2024, it only filed the required application through the BSE Listing Centre on July 28, 2025.

The warning cited a violation of Regulation 31A(8)(c) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which mandates the disclosure of reclassification applications to stock exchanges within 24 hours of submission.

Company's Response

Prakash Pipes Limited acknowledged the warning in its filing, stating, "The Company has taken note of the same and shall ensure strict compliance with the provisions of SEBI LODR Regulations and other applicable laws going forward."

Implications

This reclassification and the subsequent warning highlight the importance of timely and accurate disclosures in the Indian stock market. While the reclassification itself does not alter the company's shareholding structure, it reflects changes in the categorization of its shareholders, which can be significant for market participants and regulators alike.

Investors and market observers will likely monitor Prakash Pipes Limited's future compliance with regulatory requirements, given the recent warning from BSE. The company's commitment to ensuring strict compliance in the future may help in maintaining investor confidence and regulatory goodwill.

Prakash Pipes Limited, a leading manufacturer of PVC pipes, fittings, and flexible packaging, has reported a significant decline in its net profit for the first quarter, despite maintaining stable revenue.

Financial Performance

The company's net profit for Q1 fell to ₹103.00 crore, marking a sharp 59% decrease from ₹254.00 crore in the same period last year. This decline in profitability comes despite a relatively stable revenue, which stood at ₹2,034.00 crore compared to ₹2,048.00 crore in the corresponding quarter of the previous year.

EBITDA and Margin Pressure

Prakash Pipes experienced a substantial decrease in its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), which dropped to ₹163.00 crore from ₹329.00 crore year-over-year. Consequently, the EBITDA margin contracted significantly, falling to 8.01% from 16.06% in the same quarter last year.

Segment Performance

PVC Pipes & Fittings Division

Despite the overall challenges, the PVC Pipes & Fittings division showed resilience in terms of sales volume. The division achieved a sales volume of 14,115 MT, up from 12,704 MT in the corresponding quarter of the last financial year. However, subdued PVC prices affected the division's profitability during the quarter.

Flexible Packaging Division

The Flexible Packaging division also demonstrated growth, albeit modest. It achieved a sales volume of 3,751 MT, compared to 3,705 MT in the same quarter of the previous year. The division is focusing on diversifying its product range and offering customized solutions to drive growth.

Market Outlook

Prakash Pipes remains optimistic about future demand, citing favorable monsoon conditions and the government's emphasis on infrastructure spending. The company anticipates increased demand from housing, infrastructure, and irrigation sectors in the coming quarters.

For the Flexible Packaging division, the company is maintaining its focus on exports to sustain sales volume and margins in the upcoming quarters.

Management Commentary

Kanha Agarwal, Managing Director of Prakash Pipes Limited, stated, "While we faced challenges in profitability this quarter, our focus remains on volume growth and diversification. The increased sales volumes in both our PVC Pipes & Fittings and Flexible Packaging divisions demonstrate the resilience of our business model. We are optimistic about the future, given the positive market indicators and our strategic initiatives."

As Prakash Pipes navigates through a challenging market environment, the company's ability to maintain revenue stability while focusing on volume growth and product diversification will be crucial for its performance in the coming quarters.