Hariom Pipe Industries Limited – Investor Presentation Summary

Key Operational Highlights

  • Sales volume: H1 FY27 reached 1,46,201 MT, up 5.7% YoY; Q2 volumes grew 31.8% QoQ to 83,117 MT
  • Value-added products contributed 96.9% of H1 sales volume and 98.0% of revenue
  • OEM products and MS tubes together accounted for 97.5% of revenue
  • H1 OEM realization rose 23.0% YoY to ₹76,857/MT; MS tube realization rose 7.8% to ₹53,805/MT
  • H1 EBITDA/MT improved to ₹7,767 for OEM products and ₹8,853 for MS tubes, up 11.1% and 7.7% YoY respectively
  • Key drivers: Restart of Perundurai operations in July 2026, focus on value-added products, improved dealer network

Segment-wise Performance

  • OEM Products (GP pipes/coils): Q2 volume 53,009 MT, H1 volume 87,090 MT; Q2 realization ₹74,209/MT, H1 realization ₹76,857/MT
  • MS Tubes: Q2 volume 27,301 MT, H1 volume 53,743 MT
  • Scaffolding: Q2 volume not specified, H1 volume 840 MT contributing ₹5.68 crore revenue
  • Explanation: Growth driven by recovery in operations post-Perundurai restart and strong demand for value-added products

Financial Highlights

  • Revenue: Q2 FY27 ₹554.2 crore (+65.0% YoY), H1 FY27 ₹983.42 crore (+23.4% YoY)
  • EBITDA: Q2 FY27 ₹67.7 crore (+58.4% YoY), H1 FY27 ₹117.58 crore (+17.2% YoY)
  • PAT: Q2 FY27 ₹28.5 crore (+173.9% YoY), H1 FY27 ₹45.89 crore (+34.8% YoY)
  • EPS: Q2 FY27 ₹9.21, H1 FY27 ₹14.82
  • Margins: Q2 EBITDA margin 12.21%, PAT margin 5.11%; H1 EBITDA margin 12.0%, PAT margin 4.64%
  • YoY comparison: Strong growth across all parameters with improved profitability per tonne
  • Drivers: Higher sales volumes, improved realizations, operational efficiency
  • Key Risks: Not explicitly disclosed in presentation

Geographical Revenue Split

  • Domestic vs Export: Not specified in presentation
  • Regional Breakdown: Strong presence in Southern & Western India with dealer network across Telangana, Andhra Pradesh, Kerala, Karnataka, Tamil Nadu & Maharashtra

Balance Sheet Snapshot

  • Net Worth: ₹705.41 crore as of September 30, 2026 (+16.6% YoY)
  • Fixed Assets: ₹421.67 crore
  • Work-in-Progress: ₹42.24 crore
  • Inventories: ₹473.41 crore
  • Trade Receivables: ₹213.14 crore
  • Financial Health Insights: Working capital cycle improved to 113 days from 124 days a year earlier; strong cash flow generation supporting growth requirements

Capex & Cash Flow Health

  • Capital Expenditure: Not specified for current period
  • Growth capital: 15 lakh warrants allotted on 27 July 2026 at ₹343.03 each, totalling ₹51.45 crore; received ₹12.86 crore upfront (25%)
  • Investment Rationale: Focus on capacity expansion, renewable energy projects, and market expansion

Strategic & R&D Initiatives

  • Developed innovative, high-strength, pre-galvanized tubular sections for solar structures
  • Established OEM partnerships for renewable energy sector products
  • Renewable energy business: Targeting 52 MW AC across 11 locations by January 2027
  • Expected impact: 25-year PPA with MSEDCL at ₹2.96 per unit supports contracted revenue stream
  • Strategic Rationale: Expanding into high-growth renewable energy markets, reducing operational costs through integrated manufacturing

Industry Trends & Business Environment

  • Macro/Industry Trends: Growing demand across diverse end-user industries including housing, automotive, infrastructure, and renewable energy
  • Impact on Company: Well-positioned to capitalize on booming renewable energy sector; targeting strong volume growth in FY27 supported by higher capacity utilization

Management Commentary & Growth Outlook

  • Strategic Outlook: Emphasis on value-added products supporting realizations and profitability per tonne
  • FY Guidance: Targeting higher plant utilization, careful cost management and timely project delivery in H2 FY27
  • Market Share Targets: Commands estimated 13% market share in thin steel segment (0.3-2.5 mm thickness)
  • Risks and Opportunities: Opportunities to improve utilization across manufacturing facilities; focus on sustainable shareholder value