Building materials hit a wall in Q2, recovery to lay bricks in FY26

Demand and margins set for slow rebuild, helping valuations cement stronger base

The performance of listed major companies in the building materials sector during the July-September quarter (Q2) of 2024-25 (FY25) was weak. Volumes remained subdued due to ongoing demand challenges while operating profit margins were pressured by declining gross margins and rising input costs.

 

Among the various segments, ceramic companies showed mixed results, while polyvinyl chloride (PVC) pipe makers and wood panel manufacturers reported declines in both volume and margin.

 

Commenting on the lacklustre performance, BOB Capital Markets noted that revenue growth for its building materials universe remained sluggish at just 1.3 per cent year-on-year (Y-o-Y) for the seventh consecutive quarter,