1. At a Glance
Kriti Industries is that classic Indian pipes company that looked boring for years, then suddenly decided to cosplay as a cyclical commodity stock in FY25–FY26.
Market cap of about ₹437 crore, stock price hanging around ₹83, and a 52-week high that now feels like a mythological creature at ₹179. Over the last one year, the stock is down ~45%, which means anyone who bought this thinking “pipes = safe” is now doing plumbing work on their own portfolio.
Latest quarterly numbers?
Sales ₹135.8 crore, down 35% YoY, PAT barely positive at ₹0.29 crore, and operating margins flirting with single digits like they’re afraid of commitment.
ROCE at ~6%, ROE negative, EV/EBITDA north of 26x — yes, you read that right. A loss-making quarter with a premium multiple. Pipes have clearly entered luxury pricing.
But before writing it off as another PVC disaster story, there’s context: FY25 was nuked by a badly timed raw-material contract, and Q3 FY26 is the awkward hangover phase.
So the real question:
Is Kriti Industries a temporary victim of polymer timing, or a permanent member of the low-margin pipe mafia?
Let’s investigate.
2. Introduction
Kriti Industries was incorporated in 1983, back when pipes were just pipes and not a battleground for branding, dealer incentives, and polymer arbitrage.
Today, Kriti operates in a space dominated by giants who print money by selling plastic tubes with god-tier margins, while smaller players like Kriti fight for scraps, tenders, and seasonal agri demand.
The company manufactures PVC, CPVC, HDPE, gas pipes, telecom ducts, micro-irrigation products — basically, if water or air flows through it, Kriti wants a cut.
But FY25 turned into a textbook example of how one bad procurement decision can wreck an entire year.
While polymer prices softened in the open market, Kriti was stuck buying expensive raw material under an annual contract. Result?
Margins evaporated, FY25 ended in losses, ROE went negative, and the stock price followed gravity
without resistance.
Now, the management says the contract ended in March 2025, and margins should “normalize.”
Classic Indian management phrase — right next to “demand environment remains challenging.”
So let’s break down what Kriti actually does, how bad FY25 really was, and whether FY26 is damage control or revival season.
3. Business Model – WTF Do They Even Do?
Kriti Industries is not a “concept stock.”
It’s a pure volume-driven plastic pipes manufacturer.
Manufacturing Setup
- 33 extrusion lines for PVC pipes
- 14 extrusion lines for HDPE & drip irrigation
- 27 injection moulding machines
This setup is designed for one thing: push tonnage.
Product Buckets
Agriculture (75% of Q4 FY25 revenue)
This is the heart of the company. Borewell casing pipes, column pipes, suction pipes — the stuff that moves water to farms and money out of government subsidy schemes.
Building Products (16%)
CPVC, UPVC, SWR pipes, water tanks — competitive segment, brutal pricing, Astral lurking in every dealer meeting.
Industrial Solutions (8%)
Gas pipes, telecom ducts, fiber solutions. Better margins, but smaller scale.
Micro-Irrigation (1%)
Drip and sprinkler systems. Technically exciting, financially irrelevant (for now).
So yes, Kriti is heavily dependent on agriculture pipes. Which means:
- Seasonal demand
- Government spending cycles
- Monsoon moods
- And zero pricing power
Does this sound like a margin-rich dream business?
Exactly.
4. Financials Overview
