Crisil Ratings revises Prince Pipes' rating outlook to 'negative'

Prince Pipes and Fittings (PPFL) said that Crisil Ratings has revised its outlook on the long-term bank facilities of to 'Negative' from 'Stable' while reaffirming the rating at 'Crisil A+'.

The agency has reaffirmed the companys short-term rating at 'Crisil A1+.

The rating action follows Crisil Ratings expectation that the weak pricing trends in polyvinyl chloride (PVC) resin, and sluggish demand from the end user sector, will continue to impact the business risk profile of the company over the medium term.

The company has already witnessed a subdued revenue growth and weakened profitability in 9M FY25, with Q3 2025 witnessing significant headwinds. During 9MFY25, PPFL faced margin erosion, with EBITDA margins falling below 6% where in, same was at 11.77% during similar period of FY24.

Despite ongoing challenges, a gradual recovery in demand, supported by improving real estate activity and a pickup in infrastructure spending could be a monitorable for the revenues and operating margin improvement.

The ratings continue to reflect the established market position on back of strong business risk profile, strong financial risk profile and ample liquidity.

These rating strengths are partially offset by susceptibility of profitability to fluctuations in raw material prices: and forex rates and exposure to intense competition.

Prince Pipes and Fittings is a Mumbai-based company and engaged in manufacturing of plastic pipes and fittings using four different polymers: UPVC, CPVC, PPR and HDPE.

The scrip rose 1.64% to currently trade at Rs 275.65 on the BSE.

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