Hi-Tech Pipes Limited conducted an earnings conference call on May 28, 2026, at 04:00 P.M. to discuss its financial results for the quarter and year ended March 31, 2026 (Q4 & FY26). The call was led by management, including Mr. Anish Bansal (Whole Time Director) and Mr. Arvind Bansal (Executive Director and Group Chief Financial Officer).

Operational Performance

  • Sales Volume (Q4 FY26): 1.47 lakh tons, a 27% year-on-year (YoY) increase from 1.16 lakh tons in Q4 FY25.
  • Sales Volume (FY26): 5.32 lakh tons for the full year, up from 4.85 lakh tons in FY25.

Financial Performance

  • Revenue (Q4 FY26): ₹1,480 crores, a 102% YoY increase from ₹734 crores in Q4 FY25.
  • Revenue (FY26): ₹4,200 crores for the full year, a 37% increase from ₹3,067 crores in FY25 (corrected from stated ₹367 crores, inferred as a typo).
  • Total Comprehensive Income (Q4 FY26): ₹18 crores, compared to ₹17.5 crores in Q4 FY25.
  • Total Comprehensive Income (FY26): ₹77 crores for the full year, a 5% increase from ₹73 crores in FY25.
  • EBITDA (Q4 FY26): ₹46 crores, a 33% increase from ₹35 crores in Q4 FY25.
  • EBITDA (FY26): ₹174 crores for the full year, an 8% increase from ₹160 crores in FY25.
  • EBITDA per ton (Q4 FY26): ₹3,150 per ton, a 5% improvement from ₹3,000 per ton in Q4 FY25.
  • EBITDA per ton (FY26): Remained stable at approximately ₹3,260 per ton for the full year.

Key Financial Ratios & Balance Sheet

  • Current Ratio (FY26): 2.17x.
  • Debt Equity Ratio (FY26): 0.18, compared to 0.15 in FY25. Management stated this level remains comfortable and provides financial flexibility.

Strategic Developments & Expansion Initiatives

The company has initiated its next growth vision to achieve a 2 million tons capacity. An additional 1 million tons capacity is planned to be added by FY29.

  • Sanand Unit 2 Phase 3 (DFT Facility): Expected to be operational by Q3 FY27. It aims to improve capacity utilization and strengthen presence in high-margin pipe segments.
  • APA Pipes Facility: Readiness expected by Q4 FY27. This will enable entry into specialized pipe segments for oil and gas transportation applications.
  • Hindupur, Andhra Pradesh (Greenfield Facility): A fully integrated manufacturing facility for ERW pipes, specialized solar tubes, and other value-added products. Construction is progressing fast, with operations expected by Q4 FY27. Capacity is 1.5 lakh tons.
  • Chennai Facility: Construction is on track and expected to be commissioned in FY27 (current financial year), with full-year benefits anticipated in FY28.

Capex Plans

For the incremental 1 million ton expansion:

  • ₹100 crores is already in CWIP (Capital Work in Progress).
  • An additional ₹300 crores will be required.
  • ₹75-100 crores is targeted for FY27, with the balance over the next two years.

Product & Market Updates

  • Successfully established 300x300 hollow section products in the market.
  • Executed supplies to marquee projects across data centers, railways, solar, infrastructure, and power sectors.
  • Secured international certifications and approvals, strengthening presence in export markets (Europe, America, Middle East).
  • Contribution of value-added products reached 39% of the overall business mix in FY26.

Sustainability Initiatives

  • Total installed solar power capacity reached 16.5 megawatts, constituting approximately 35% of the company's overall power requirement.
  • Initiated the use of green hydrogen at its Secunderabad Unit 1 facility.

Fundraising: Preferential Issue

  • A preferential issue to the promoter group amounting to ₹90 crores has been proposed.
  • The object is to meet the incremental working capital requirements arising from the ongoing and planned capital expenditure pipeline for expansion.
  • The funds will ensure smooth execution of the expansion roadmap while maintaining a healthy balance sheet.

Management Guidance

  • Volume Guidance (FY27): Targeting between 6.5 lakh tons to 7 lakh tons.
  • Volume Guidance (FY28): A conservative estimate of around 8.5 lakh tons, based on a 1.4 million ton capacity and ~62-65% utilization.
  • EBITDA per ton Guidance (FY27 & FY28): ₹3,500 to ₹4,000 per ton, assuming no market volatility and aligned demand-supply.
  • Value-Added Products Mix (FY27): Expected to reach almost 50% by the end of the year.

Q&A Session Highlights

  • Stock-in-Trade: A significant increase was noted in the cost of stock-in-trade (inventory) in Q4, attributed to geopolitical situations affecting import cargo and year-end supplier commitments. Management clarified these are trading items (HRC, cold-rolled, galvanized) with minimal margins and do not contribute to volume growth. They expect this activity to reduce as new plant utilization increases.
  • Capacity Breakdown (FY28): The 1 million ton expansion is broken down as: 1.5 lakh tons in Sanand, 2 lakh tons in Hindupur, 1.5 lakh tons in Sri City (Chennai), and 2 lakh tons in the UP plant.
  • API Facility Timeline: Full readiness for API pipes (for oil & gas applications) is expected by Q3 FY27. Supplies will initially focus on water applications before migrating to the oil and gas segment.

Conclusion

Management expressed optimism about long-term growth prospects driven by infrastructure development, construction activities, renewable energy investments, water transportation projects, and rising industrial demand. The company believes it is well-positioned to capitalize on future opportunities and create long-term value for stakeholders.