Financial Performance (Q1 FY27 vs Q1 FY26 vs Q4 FY26)

  • Revenue from operations: ₹1,091 crore (Q1 FY26: ₹1,143 crore; Q4 FY26: ₹1,280 crore)
  • Other income: ₹175 crore (Q1 FY26: ₹160 crore; Q4 FY26: -₹48 crore)
  • Total revenue: ₹1,266 crore (Q1 FY26: ₹1,303 crore; Q4 FY26: ₹1,232 crore)
  • Cost of materials consumed: ₹742 crore (Q1 FY26: ₹797 crore; Q4 FY26: ₹784 crore)
  • Employee benefit expenses: ₹36 crore (Q1 FY26: ₹32 crore; Q4 FY26: ₹35 crore)
  • Depreciation: ₹31 crore (Q1 FY26: ₹25 crore; Q4 FY26: ₹31 crore)
  • Other expenses: ₹238 crore (Q1 FY26: ₹226 crore; Q4 FY26: ₹234 crore)
  • Profit before exceptional items & tax: ₹327 crore (Q1 FY26: ₹303 crore; Q4 FY26: ₹159 crore)
  • Exceptional items: Nil (Q4 FY26: ₹3 crore expense)
  • Profit before tax: ₹327 crore (Q1 FY26: ₹303 crore; Q4 FY26: ₹156 crore)
  • Tax expense: ₹56 crore (Q1 FY26: ₹69 crore; Q4 FY26: ₹48 crore)
  • Profit after tax: ₹271 crore (Q1 FY26: ₹234 crore; Q4 FY26: ₹108 crore)

Operational Performance (Q1 FY27)

  • Seamless pipes production: 97 kMT (Q1 FY26: 109 kMT; Q4 FY26: 113 kMT)
  • ERW pipes production: 19 kMT (Q1 FY26: 22 kMT; Q4 FY26: 33 kMT)
  • Seamless pipes sales: 96 kMT (Q1 FY26: 103 kMT; Q4 FY26: 112 kMT)
  • ERW pipes sales: 20 kMT (Q1 FY26: 20 kMT; Q4 FY26: 30 kMT)
  • Seamless EBITDA: ₹151 crore (₹15,660/tonne)
  • ERW EBITDA: ₹2 crore (₹1,080/tonne)
  • The decline in production was attributed to temporary disruption in gas supply caused by the war.

Investments and Inter-Corporate Deposits (ICDs)

Total unquoted equity/preference share investments: ₹46.10 crore

  • Jindal Premium Connections: ₹4 crore equity
  • MSL Finance: ₹3 crore equity
  • Maharashtra Seamless (Singapore): ₹17 crore equity
  • Jindal Pipes (Singapore): ₹22 crore equity
  • MSL Seamless Tubes Ltd.: ₹0.05 crore equity
  • United Seamless Ltd.: ₹0.05 crore equity

Total ICDs given: ₹220 crore

  • Maharashtra Seamless (Singapore): ₹215 crore
  • Jindal Premium Connections: ₹5 crore

Balance Sheet and Liquidity Position (as of 30 June 2026)

Liquid investments: ₹3,848 crore

  • Long duration (Bonds & NCDs, Corporate Deposits): ₹323 crore
  • Short duration (Mutual Funds, Fixed Deposits, Cash & Bank): ₹3,525 crore

Borrowings:

  • Gross debt: ₹10 crore (loan for capex)
  • Net cash position: ₹3,838 crore (after offsetting liquid investments against debt)

Corporate guarantees: NIL outstanding from 31 March 2024 onwards.

Capital Allocation Plan

Total capital expenditure of ₹852 crore planned across various projects:

1. Heat treatment, finishing facilities & EMI for capacity enhancement (Narketpally): ₹184 crore; estimated annual turnover increase: ₹800 crore

2. Solar plant (captive) at USTPL: ₹80 crore; estimated annual cost savings: ₹20 crore

3. Complete line for cold drawn pipes including pilger & drawbench (Mangaon): ₹100 crore; estimated annual turnover increase: ₹50 crore

4. OCTG line & billet pre-heating surface (MSL): ₹95 crore; estimated annual turnover increase: ₹50 crore

5. Hot mill upgrade to PQF (14"): ₹350 crore; estimated annual turnover increase: ₹1,000 crore

6. EMI machine (14"), 3 Roll sizing mill (14"): ₹22 crore (normal replacement)

7. Flying saw & Ultrasonic Testing Machine (7") at Nagothane: ₹10 crore

8. Mill upgrade including annealer, hydro, Ultrasonic Testing (ERW): ₹6 crore

9. Electronic upgrade of EMI & Ultrasonic Testing Machine (OCTG): ₹5 crore

Financing will be through internal accruals. Additional working capital requirement of ₹300 crore in USTPL and ₹250 crore in MSL will also be funded from internal accruals.

Order Book and Market Position

Total order book: ₹1,709 crore

  • ONGC & OIL orders: ₹714 crore (42% of total; includes drill pipes orders of ₹2 crore)
  • Other orders: ₹995 crore (58% of total; includes cylinder pipes orders of ₹100 crore from Telangana)

The company maintains 55% market share in seamless pipes and 18% in API certified, high frequency ERW pipes.

Regulatory and Policy Environment

  • Anti-dumping duty via minimum import price implemented on various seamless pipes from China, extended until 27 January 2027.
  • Ministry of Steel revised DMI & SP policy from 01 April 2025 for 5 years, making seamless & ERW pipes 'Melt & Pour' (required for PSU projects).
  • For requirements up to ₹200 crore, only domestic tenders are floated.

Market Trends and Developments

  • New oil discoveries (Suryamani, Vajramani, Amrit, Moonga) made by ONGC in offshore Mumbai and Mahanadi basins.
  • Tender issuance by oil companies has slowed despite discoveries.
  • Crude oil output dropped 2.5% YoY in 2024-25; natural gas production declined by 1%.
  • India imports 88% of crude oil and 51% of natural gas needs.
  • Project awards declined 27% YoY in H1 FY26 per Ind-Ra's tracker.
  • Company has developed import substitution products: cylinder pipes (approved with major CNG manufacturers), subsea sour service seamless pipes (domestic market size: 35,000 mt), and drill pipes (domestic market size: 10,000 mt).
  • OPEC guides global oil demand in 2026 at 106.52 mn barrels per day.
  • India's oil demand projected to rise 30% to 7.2 mn barrels per day by 2030; natural gas demand to double to 133 BCM by 2030.
  • India plans to double oil refining capacity to 450 MT in next 10 years.
  • ONGC, OPaL, and MRPL plan to double production to 8 MMTPA by 2030 with ₹1 lakh crore investment.

Shareholding Pattern (as of 30 June 2026)

  • Promoter holding: 70.28% (unchanged)
  • FII holding: 9.72% (up from 9.58% in Q4 FY26)
  • DII holding: 3.84% (up from 3.29% in Q4 FY26)
  • Total FII + DII: 13.56% (up from 12.87%)
  • Number of FII + DII investors: 194 (up from 191)

Marquee investors include Quant funds, Vanguard funds, Abakkus Diversified Alpha Fund, Abu Dhabi Investment Authority, Acadian Emerging Markets Small Cap Fund, and ICICI Prudential Energy Opportunities Fund.

Investor Contact

Kaushal Bengani, Deputy General Manager (Investor Relations & Finance)

Tel: +91-124-4624177