Key Financial Figures

Q2 FY27 Performance (Quarter Ended September 30, 2026):

  • Revenue: INR505 crores (vs. INR491 crores in Q2 FY26, +2.9% YoY)
  • EBITDA: INR41.7 crores (vs. INR41.7 crores in Q2 FY26)
  • EBITDA Margin: 8.3% (vs. 8.5% in Q2 FY26)
  • PAT: INR30.7 crores (vs. INR32.3 crores in Q2 FY26)

H1 FY27 Performance (Half-Year Ended September 30, 2026):

  • Revenue: INR985 crores (vs. INR890 crores in H1 FY26, +10.7% YoY)
  • EBITDA: INR81.1 crores (vs. INR73.3 crores in H1 FY26, +10.7% YoY)
  • EBITDA Margin: 8.4% (stable YoY)
  • PAT: INR58.9 crores (vs. INR60.7 crores in H1 FY26)

Operational Metrics:

  • Q2 Sales Volume: 41,600 metric tons (+1% YoY)
  • Net Working Capital: 44 days

Strategic and Operational Highlights

Order Book & Capacity:

  • Residual order book stood at over INR2,000 crores as of October 31, 2026.
  • Approximately 15-20% (INR300-350 crores) of the order book is from the new Heavy Steel Structure (HSS) vertical.
  • Current monthly execution capacity is targeted at INR200-220 crores, with the order book representing 9-10 months of production.
  • The company aims to achieve FY27 revenue guidance of INR2,150-2,200 crores, implying a H2 run rate of ~INR600 crores per quarter.

Capacity Expansion & Capex:

  • INR250 crores spent on capex over the last 2+ years, exceeding the INR90 crores allocated from the IPO.
  • New facilities operational: Andhra Pradesh Phase 1 (HSS plant) and Gujarat plant (both phases).
  • Current HSS capacity: 25,000 tons, planned ramp-up to 75,000-80,000 tons by end of FY28.
  • Target to add 100,000 tons of salable capacity by March 2028 and another 100,000 tons by June-July 2029.

New Business Verticals:

1. Heavy Steel Structures (HSS): Focus on data centers, multi-story commercial buildings, hospitals, hotels, airports, and complex industrial plants. Key differentiators include full steel price pass-through and stricter payment terms.

2. Exports: Strategic focus on North American (via JV with ER Steel Canada) and African markets. Initial funding of INR50 crores for the Open Web Steel Joists (OWSJ) venture.

Margin Outlook & Strategy:

  • Current margin pressure attributed to high steel price volatility, supply chain disruptions, and upfront investment in new verticals.
  • Medium-term (next 12 months) EBITDA margin target: 10-12%.
  • Long-term aspiration: 14-15%, driven by operational leverage, higher-margin HSS/export projects, and a shift towards variable pricing contracts.
  • 40% of the current order book is on a variable pricing model (full steel price pass-through), a significant increase driven by market volatility.

Fundraising Update:

  • QIP preparation is complete with all legal formalities done.
  • Launch timing is at the discretion of the advisor, Ambit Capital, and can be executed with a 72-hour notice.

Management Commentary & Guidance

  • Seasonality: H1 is typically softer due to monsoon impacts on construction activity; H2 execution is expected to pick up significantly.
  • Demand Environment: Customer inquiries remain healthy across manufacturing, logistics, warehousing, data centers, and infrastructure sectors. The government's draft 2047 Steel Policy is seen as a positive long-term catalyst.
  • Margin Drivers: Improvement expected from a higher share of HSS/export business (better net margins), operational leverage on higher turnover, and a more favorable steel price environment.
  • Risks Mitigated: The increased use of variable pricing contracts is a deliberate strategy to mitigate raw material price risk.

Participants in the Earnings Call

  • Management: Arvind Nanda (Executive Chairman), Manish Garg (MD & CEO), Pushpendra Bansal (CFO), Viraj Nanda (Executive Director)
  • Moderator: Sudeep Bora (Ambit Capital Private Limited)