Financial Performance Summary
Hariom Pipe Industries Limited reported strong financial results for FY 2025-26 with revenue from operations growing 23% YoY to ₹1,667 crore and profit after tax increasing 23% to ₹76 crore. The company achieved sales volume of 2.89 lakh MT (18% YoY growth) with EBITDA of ₹209.43 crore and EPS of ₹24.49. Key financial ratios showed improvement with return on equity at 11.7%, return on capital employed at 20.7%, and debt-to-equity ratio at 0.54x.
Operational Highlights and Capacity Expansion
The company expanded its manufacturing capacity with MS Tubes capacity at Mahabubnagar increasing from 1,32,000 MTPA to 2,16,000 MTPA, bringing total installed capacity to 7,85,232 MTPA. Value-added products contributed 96% of total sales volume and 98% of revenue. The company utilized 33,000 MT of recycled steel (33% of production) and maintained relationships with 900+ dealers and B2B clients across India.
Subsidiary Developments and Investments
Hariom Pipe invested ₹926 lakh in two subsidiaries during FY26. Hariom Power & Energy Private Limited (77.42% owned) is executing a 60 MW AC solar power project across 13 locations in Maharashtra, with 5 MW AC already commissioned. Metal Mart Private Limited (70% owned) was incorporated as a trading platform for metals and steel products but hasn't commenced commercial operations. The company provided a ₹300 lakh performance guarantee for HPEPL.
Corporate Actions and Dividend Declaration
The Board recommended a final dividend of ₹0.75 per equity share (7.5%) subject to shareholder approval at the 19th AGM scheduled for September 30, 2026. Corporate actions included the appointment of Mr. Ansh Golas as Whole-time Director and re-appointment of Mr. Rajender Reddy Gankidi as Independent Director. A preferential issue of up to 15,00,000 convertible warrants to promoter group was approved.
Government Grants and Incentives
The company recognized government grant income of ₹844.85 lakh under the Telangana Industrial Development and Entrepreneur Advancement (T-IDEA) Scheme, comprising reimbursement of power cost (₹260.25 lakh), term loan interest (₹504.59 lakh), and net SGST (₹80.02 lakh).
Borrowings and Financial Structure
Total secured borrowings stood at ₹1,731.32 crore with interest rates ranging from 7.29% to 11.03% across various facilities from banks including State Bank of India, Canara Bank, and HDFC Bank. The company maintained adequate liquidity with current ratio of 1.67 and generated strong operating cash flow of ₹192.08 crore (92% EBITDA-to-cash conversion).
Regulatory Challenges and Contingencies
The company received a temporary closure notice from Tamil Nadu Pollution Control Board on April 1, 2026 for its Perundurai plant, though operations resumed after suspension of closure order on July 13, 2026. Disputed tax demands totaled ₹719.07 lakh across income tax and GST matters. CRISIL placed the company's credit rating on 'Watch Developing' status.
Annual General Meeting Agenda
The 19th AGM on September 30, 2026 will consider adoption of financial statements, dividend declaration, re-appointment of directors including Mrs. Sunita Gupta, and revision of remuneration for key managerial personnel including Mr. Rupesh Kumar Gupta (Managing Director at ₹3.20 crore per annum) and Mr. Shailesh Kumar Gupta (Joint Managing Director at ₹3.00 crore per annum).
Corporate Governance and Compliance
The company maintained compliance with all applicable regulations, reported no material orders from regulators or courts, and had no instances of fraud reported by statutory auditors. CSR expenditure totaled ₹1.51 crore focused on education, healthcare, children welfare, and animal welfare.