1. At a Glance
When Kriti Industries (India) Ltd sneezes, polymer prices catch a cold. The Indore-based pipe manufacturer, once seen as a promising midcap underdog of the PVC pipe ecosystem, is now battling its toughest season yet — a H1 FY26 where revenue flow slowed, costs flooded, and profit simply evaporated.
The company closed Q2 FY26 (September 2025) withsales of ₹85.7 croreand aloss of ₹9.68 crore, translating into a quarterlyEPS of -₹1.84. That’s a margin so tight, it could slice through a CPVC pipe. From a market cap of ₹479 crore and astock price of ₹90.8, Kriti is down nearly49% over the past year, giving “pressure testing” a whole new meaning.
Despite a 33-line extrusion setup, 27 injection moulding machines, and distribution across490 dealers, the company’sROE stands at -2.42%andROCE at 6.02%— figures that make analysts quietly close Excel sheets in disbelief. Theenterprise value hovers near ₹560 crore, giving anEV/EBITDA of 41.9x— a number high enough to qualify for skydiving training.
Polymer prices finally softened, but Kriti’s FY25 procurement contract forced it to buy at higher rates — leading to painful losses. The contract’s expiry in March 2025 means H2 FY26 could be better, assuming the management doesn’t find another way to trip over its own inventory.
2. Introduction
Once upon a polymer, Kriti Industries was the pride of Pithampur — a midcap player punching above its molecular weight in the piping world. Founded in 1983, it built its name with the “Kasta” brand, slowly turning its PVC and HDPE creations into household fixtures across 16 Indian states.
But by FY25, the company faced a perfect storm: polymer price volatility, a high-cost procurement contract, and an agricultural slowdown that turned farmers from pipe buyers into meme creators. The result? A year of red ink and frowning shareholders.
Withannual sales of ₹657 crore (TTM)anda net loss of ₹17 crore, Kriti looks like the kid who brought all the right tools to class but forgot to study. Despite efficient operations and decent capacity utilization, its operating margins fell to a dismal1.5%, while competitors like Supreme and Astral were laughing all the way to their credit notes.
Still, there’s hope. With the ill-timed polymer contract gone and consolidation of its wholly-owned subsidiaryKriti Auto & Engineering Plasticsunderway, management is hinting at a turnaround. But investors, burned by past optimism, are likely whispering, “Pehle proof, fir pipe.”
3. Business Model – WTF Do They Even Do?
Kriti Industries makes pipes — lots of them. Not the type you smoke, but the ones that transport water, gas, and occasionally hope across India’s farms, homes, and industrial units.
The business operates through four product verticals:
- Agriculture (75% revenue share)– The holy grail of rural India: PVC pipes, column fittings, casing, and HDPE irrigation solutions.
- Building Products (16%)– Plumbing, CPVC and UPVC solutions, SWR drainage pipes, and even garden pipes for that one rich uncle with a lawn.
- Industrial Solutions (8%)– Fiber duct systems and gas pipes for telecom and energy clients.
- Micro-Irrigation (1%)– Sprinkler and drip systems that sound futuristic but barely move the revenue needle.
The Pithampur plant is an engineering marvel, running33 extrusion lines for PVC,14 for HDPE, and27 injection moulding machines. Total production capacity crosses1.38 lakh MTPA, yet FY25 saw capacity utilization dip as polymer costs choked volumes.
The “Kasta” brand leads its retail presence, with490 dealers across 16 states— majorly Maharashtra, Gujarat, Rajasthan, Telangana, and Andhra Pradesh. Ironically, 85% of Kriti’s business is retail-driven — meaning every loss is deeply personal for a lot of small-town distributors now stuck with unsold pipe inventory and unamused customers.
4. Financials Overview
Let’s break down the quarterly numbers that make auditors sigh and analysts squint.
| Metric | Q2 FY26 (Sep 2025) | Q2 FY25 (Sep 2024) | Q1 FY26 (Jun 2025) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | ₹85.7 Cr | ₹117.4 Cr | ₹224.1 Cr | -27.0% | -61.8% |
| EBITDA | -₹4.1 Cr | ₹5.2 Cr | ₹15.1 Cr | -178.8% | -127.2% |
| PAT | -₹9.7 Cr | -₹3.6 Cr | ₹7.3 Cr | -171.9% | -232.6% |
| EPS (₹) | -1.84 | -0.72 | 1.38 | -155% | -233% |
Commentary:If this table had a soundtrack, it would be “Kabhi Khushi Kabhi Gham.” Sales fell sharply by27% YoY, and profit didn’t just fall — it free-fell off a cliff. EBITDA margin turnednegative (-4.75%), highlighting the cost pain from
high raw material procurement.
Annualised EPS now stands at a depressing-₹7.36, giving Kriti an “infinite” P/E — not the good kind. But with the raw material curse broken post-March 2025, Q3 FY26 might just be the quarter of redemption (or at least, fewer facepalms).
5. Valuation Discussion – The Fair Value Range (Educational Purpose Only)
Let’s play valuation doctor (no financial advice, just therapy).
Method 1: P/E BasedIndustry P/E = 23.5Kriti EPS (Annualised) = -₹3.37 → NegativeHence, P/E not meaningful until profits reappear. Using normalized EPS of ₹2.5 (from FY24 when profits existed):Fair Value = ₹2.5 × 23.5 = ₹58.7
Method 2: EV/EBITDA BasedCurrent EV = ₹560 CrEBITDA (FY25) = ₹13.7 Cr → EV/EBITDA = 40.8x (ouch)If margins normalize to 8% EBITDA (~₹52 Cr on ₹657 Cr sales), EV/EBITDA = 10.7xImplied fair value ≈ ₹130–₹150 range
Method 3: DCF (Conservative)Assume ₹650 Cr revenue base, 7% CAGR for five years, 6% EBITDA margin, discount rate 12% → Intrinsic range ₹95–₹120
Educational Fair Value Range: ₹90 – ₹140(For educational purposes only; not investment advice. Please don’t quote this to your broker or your father-in-law.)
6. What’s Cooking – News, Triggers, Drama
The past year was basically a soap opera:
- Raw Material Saga:Kriti’s annual polymer contract turned into a villain, forcing the company to buy raw material above market price. That single deal tanked profits across FY25.
- Amalgamation Update:In Nov 2025, the Board approved the merger ofKriti Auto & Engineering Plastics Pvt. Ltd., a wholly-owned subsidiary. This will simplify structure and possibly save costs.
- Preferential Issue to Kriti Nutrients:The group cross-holding now thickens, with Kriti Nutrients subscribing to15 lakh shares, signaling family trust remains high (if not the market’s).
- Warrants Mania:Around94.6 lakh convertible warrantswere issued to infuse funds — a sign of confidence or desperation, depending on how optimistic you are.
The management, in its con-call, promised margin recovery “from next quarter” — the corporate equivalent of “acha din aane wale hain.”
7. Balance Sheet
| Particulars | Mar 2024 | Mar 2025 | Sep 2025 |
|---|---|---|---|
| Total Assets | ₹454 Cr | ₹472 Cr | ₹421 Cr |
| Net Worth | ₹152 Cr | ₹202 Cr | ₹218 Cr |
| Borrowings | ₹128 Cr | ₹100 Cr | ₹101 Cr |
| Other Liabilities | ₹174 Cr | ₹170 Cr | ₹103 Cr |
| Total Liabilities | ₹454 Cr | ₹472 Cr | ₹421 Cr |
