Financial Performance Highlights

Quarterly Performance (Q2 FY27):

  • Revenue from operations: ₹1,270 crore (Q1 FY27: ₹1,091 crore; Q2 FY26: ₹1,159 crore)
  • Other income: ₹(2) crore (Q1 FY27: ₹175 crore; Q2 FY26: ₹75 crore)
  • Total revenue: ₹1,268 crore (Q1 FY27: ₹1,266 crore; Q2 FY26: ₹1,234 crore)
  • Profit before tax: ₹99 crore (Q1 FY27: ₹327 crore; Q2 FY26: ₹174 crore)
  • Profit after tax: ₹78 crore (Q1 FY27: ₹271 crore; Q2 FY26: ₹130 crore)
  • Tax expense: ₹21 crore (Q1 FY27: ₹56 crore; Q2 FY26: ₹44 crore)

Half-Yearly Performance (H1 FY27):

  • Revenue from operations: ₹2,361 crore (H1 FY26: ₹2,301 crore)
  • Total revenue: ₹2,534 crore (H1 FY26: ₹2,537 crore)
  • Profit before tax: ₹426 crore (H1 FY26: ₹477 crore)
  • Profit after tax: ₹349 crore (H1 FY26: ₹364 crore)

Annual Comparison:

  • FY26 Revenue from operations: ₹4,671 crore (FY25: ₹5,266 crore)
  • FY26 Profit after tax: ₹718 crore (FY25: ₹793 crore)

Operational Performance

Production & Sales (Q2 FY27):

  • Seamless pipes production: 97 kMT (Q1 FY27: 97 kMT; Q2 FY26: 107 kMT)
  • ERW pipes production: 25 kMT (Q1 FY27: 19 kMT; Q2 FY26: 24 kMT)
  • Seamless pipes sales: 103 kMT (Q1 FY27: 96 kMT; Q2 FY26: 103 kMT)
  • ERW pipes sales: 29 kMT (Q1 FY27: 20 kMT; Q2 FY26: 21 kMT)

EBITDA Performance (Q2 FY27):

  • Seamless pipes EBITDA: ₹95 crore (₹9,220/tonne)
  • ERW pipes EBITDA: ₹5 crore (₹1,830/tonne)
  • Q1 FY27 comparison: Seamless ₹151 crore (₹15,660/tonne), ERW ₹2 crore (₹1,080/tonne)
  • Q2 FY26 comparison: Seamless ₹106 crore (₹10,315/tonne), ERW ₹1 crore (₹632/tonne)

Investments and Inter-Corporate Deposits

Unquoted Equity/Preference Share Investments & ICDs (September 2026):

  • Total: ₹46.10 crore equity + ₹15 crore ICDs
  • Jindal Premium Connections: ₹4 crore equity + ₹15 crore ICDs
  • 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

Balance Sheet Position

Liquid Investments (September 2026):

  • Long duration investments: ₹273 crore (Bonds & NCD)
  • Short duration investments: ₹3,433 crore (Mutual Funds: ₹3,329 crore, Fixed Deposits: ₹5 crore, Cash & Bank: ₹99 crore)
  • Total liquid investments: ₹3,706 crore (March 2026: ₹3,860 crore; March 2025: ₹2,630 crore)

Debt Position (September 2026):

  • Gross debt: ₹5 crore (loan for capex)
  • Net cash position: ₹3,701 crore (March 2026: ₹3,850 crore; March 2025: ₹2,630 crore)
  • Corporate guarantees: NIL outstanding since 31 March 2024

Capital Allocation Plan

The company outlined an ₹852 crore capital expenditure plan fully funded through internal accruals:

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

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

3. Complete line for cold drawn pipes: ₹100 crore at Mangaon (estimated annual turnover increase: ₹50 crore)

4. OCTG line & billet pre-heating surface: ₹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

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

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

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

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

Current Order Book: ₹2,203 crore

  • ONGC & OIL orders: ₹737 crore (33% of total, includes drill pipes orders of ₹0.27 crore)
  • Other orders: ₹1,466 crore (67% of total, includes cylinder pipes orders of ₹144 crore)

Market Share:

  • 55% market share in seamless pipes segment
  • 18% market share in API certified, high frequency ERW pipes segment

Regulatory and Policy Environment

  • Anti-dumping duty implemented via minimum import price on seamless pipes from China extended until 27 January 2027
  • Ministry of Steel revised DMI & SP policy from 01 April 2025 making seamless & ERW pipes 'Melt & Pour' requirement for PSU projects
  • Domestic tenders only for requirements up to ₹200 crore, excluding foreign players

Industry and Market Trends

  • New oil discoveries (Suryamani, Vajramani, Amrit, Moonga) in Mumbai and Mahanadi basins
  • Crude oil output dropped 2.5% in 2024-25 and 2.50% in 2025-26
  • Natural gas production declined by 1% in 2024-25 and 3.7% in 2025-26
  • India imports 88% of crude oil and 51% of natural gas needs
  • Project awards declined 27% YoY in H1 FY26 per Ind-Ra's 2QFY26 Project Tracker
  • Domestic market size: 35,000 mt for subsea sour service seamless pipes, 10,000 mt for drill pipes
  • OPEC projects global oil demand at 106 mn barrels/day in 2026, rising to 108 mn barrels/day in 2027
  • India's oil demand projected to rise 30% to 7.2 mn barrels/day by 2030
  • India's natural gas demand projected to double to 133 BCM by 2030
  • India plans to double oil refining capacity to 450 MT in next 10 years
  • Estimated fresh seamless pipes requirement: 100,000 mt per year from new well drilling

Shareholding Pattern (30 September 2026)

  • Promoter holding: 70.30% (increased from 70.28% in Q1 FY27)
  • FII holding: 9.93% (increased from 9.72%)
  • DII holding: 3.87% (increased from 3.84%)
  • FII + DII combined: 13.80% (increased from 13.56%)
  • Number of FII + DII investors: 197 (increased from 194)

Marquee Investors include: Quant Small Cap Fund, Quant Multi Cap Fund, Vanguard Total International, Vanguard Emerging Markets, Vanguard Fiduciary Trust, Vanguard FTSE All-World, Abakkus Diversified Alpha Fund, Abu Dhabi Investment Authority, Acadian Emerging Markets Small Cap Fund, ICICI Prudential Energy Opportunities Fund.

Forward-Looking Statements Disclaimer

The document contains forward-looking statements subject to risks including uncertainties in oil and gas prices, steel prices worldwide and domestic, and economic & political conditions. The company disclaims any duty to update the information presented.

Investor Contact

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

Tel: +91-124-4624177, Email: kaushal@mahaseam.com