Building Materials Sector Update : Q2FY26: Healthy Momentum Across Pipes, MDF and Bathware; Mixed Trends in Plywood and Tiles by Choice Institutional Equities
Our Building Materials coverage universe comprising plastic pipes, bathware, tiles, plywood and MDF, delivered a mixed performance in Q2FY26. Pipes volumes declined for several companies due to an early monsoon and idiosyncratic factors, while Bathware registered modest growth of 4%. Plywood volumes were down 3%, whereas MDF volumes improved 8% YoY. SOMC outperformed peers in the tiles category on a QoQ basis
The Plastic pipes industry posted 9% YoY volume growth below expectations as extended monsoons and muted infra activity weighed on demand. HINDWARE and APOLP outperformed the industry with 14% and 8% YoY volume growth, respectively. Realisation fell 10% YoY to INR 137/kg, while EBITDA/MT for HINDWARE and APOLP declined 17% and 24% YoY on elevated input costs. Capacity expansion remains on track: HINDWARE’s Roorkee unit adds 12,500 MT and APOLP has outlined INR 4,000Mn capex to scale up to 286KTPA by FY27E.
In Bathware segment, HINDWARE reported 10% YoY revenue growth with a 150 bps margin expansion. SOMC delivered 9% YoY revenue growth. Tiles demand remained soft, with SOMC reporting flattish volume/revenue at -0.1%/0.4% YoY
MTLM delivered 7% YoY volume growth in plywood, but margin stayed flat at 8.2%. The MDF category posted strong 15.9% volume growth, supported by reduced imports. Realisation was stable at INR 31,222/CBM owing to a richer product mix, though EBITDA margin contracted 350 bps to 8.3%.
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