New Delhi, Nov. 26 -- India's building products industry, including the wood panels, tiles, and bathware is poised for a cyclical recovery from the second half of FY26 after facing a two- to three-year slowdown.

According to a comprehensive sector report by Motilal Oswal Financial Services the demand, distorted by the post-pandemic surge in home renovations and record housing sales, softened through FY24 and FY25 as volumes normalized and inflation weighed on consumption. Despite this, the report maintain that the sector's long-term structural drivers remain intact.

The sector's fortunes are closely tied to real estate activity. A slowdown in launches and housing absorption in FY25, linked to state and central elections and approval del...