Financial Performance Highlights

Q1 FY27 revenue stood at ₹1,683 crore, representing 24% year-on-year growth. Adjusted EBITDA increased by 46% YoY to ₹154 crore, while PAT grew by 21% YoY to ₹85 crore. EBITDA margin was 9% and PAT margin was 5% for the quarter.

Operational Performance Breakdown

Product-wise revenue contribution for Q1 FY27: Ferroalloys (27.33%), Pig Iron (19.13%), TMT Bar (14.83%), Ductile Iron Pipes (14.95%), Sponge Iron (7.4%), Coke (7%), Billets (3.54%), and Scrap/Fines (1%). Value-added products accounted for 42% of total sales. Ferroalloy prices increased 46% YoY while pig iron prices improved 16% YoY.

Capacity Expansion Update

Ductile iron pipe capacity increased from 5 lakh tons to 5.5 lakh tons per annum. Specialized ferroalloy capacity being enhanced from 1.66 lakh tons to 1.9 lakh tons per annum. Blast furnace capacity increasing from 6.3 lakh tons to 7.5 lakh tons per annum. Sinter capacity expanding from 9.08 lakh tons to 12.08 lakh tons per annum. All enhanced capacities expected to be commissioned by Q3 FY27 (December 2026-January 2027).

Capex Details

The ongoing expansion program has already invested ₹1,076 crore, mostly through internal accruals. Overall project outlay revised from approximately ₹1,000 crore to ₹1,112 crore due to technical upgrades, additional ancillaries, inflation, and time overruns. Balance capex of ₹35-40 crore expected to be completed by end of calendar year 2026.

Debt Position

Net term debt reduced significantly to ₹188 crore in Q1 FY27 from ₹3,408 crore in FY21. Net term debt to equity ratio stands at 0.07 as of FY26 end. Working capital debt (fund-based and non-fund-based) ranges between ₹375-400 crore with sanctioned limit of approximately ₹550 crore. Company maintains cash/unutilized position of ₹70-80 crore.

Industry Outlook and Demand Environment

Ductile iron pipes market remains subdued in near term due to slow government ordering and project execution. Management expects post-monsoon recovery in dispatches and payments. Jal Jeevan Mission 2.0 extended until December 2028 with total outlay enhanced to ₹8.69 lakh crore including ₹3.5 lakh crore central assistance. AMRUT 2.0 continues to provide meaningful opportunities for DI pipe industry.

Order Book and Utilization

Current DI pipe capacity utilization at 30% of enhanced capacity. Order book visibility approximately four months. Ferroalloys segment achieved over 80% capacity utilization in Q1. Company targets 50-60% capacity utilization for DI pipes as market recovers.

Receivables Update

Regarding Jal Jeevan Mission pending dues, approximately 25-35% of outstanding amounts have been released with expectation that balance will be liquidated over next 2-4 months as fund flow improves.

Margin Guidance

Conventional steel products margins range between 5-7%. Specialized ferroalloys margins range between 15-18% with expectation to sustain at 15-20% levels long-term. DI pipe margins currently around 12% with potential to improve to 18% if prices recover.

Regional Market Development

Company notes increased development activity in West Bengal due to change in government, expecting to increase TMT bar sales in the state from current 15-20% to 50-70% of production.

Management Participants

Mr. Aditya Jajodia (Chairman and MD), Mr. Raj Kumar Sharma (Joint CFO), Mr. Vijay Bagri (President Finance), Mr. Ajay Tantia (Company Secretary), moderated by Ms. Sana Kapoor (Go India Advisors).

Forward-looking Statements

Management indicated that with completed capacity expansions, company could achieve ₹7,000-7,500 crore turnover in normal market conditions. Value-added products contribution targeted to reach 70% of sales from current 42% as DI pipe demand recovers.