Sarthak Metals Limited – Investor Presentation Summary
Key Operational Highlights
- Cored wires volume: 1,834 tonnes in Q4 FY26, representing 32% YoY growth and 8% QoQ decrease in realizations to ₹2.36 lakh/tonne
- Aluminium flipping coils volume: 35% YoY growth in Q4 FY26
- Welding division: 432 tonnes volume in Q4 FY26, representing 115% YoY growth with price realization of ₹1.11 lakh/tonne
- Full-year FY26 welding division revenue: ₹15.7 crore in its first full year of operations
- Key drivers: Knowledge-driven marketing initiatives, deepening engagement with key customers, RDSO approval from Indian Railways
Segment-wise Performance
- Cored wires business: 14% volume growth in full-year FY26 despite challenging industry conditions
- Welding division: Achieved average monthly volumes exceeding 115 tonnes over the past year, with more than 1,400 tonnes sold
- Aluminium flipping coils: Segment remained subdued during the year due to difficult domestic market conditions and significant overcapacity
Financial Highlights
Revenue: ₹61.99 crore (Q4 FY26)
EBITDA: ₹2.51 crore (Q4 FY26)
PAT: ₹1.49 crore (Q4 FY26)
EPS: ₹1.09 (Q4 FY26)
Margins: EBITDA margin 4.04% (Q4 FY26), representing +120 bps YoY but -37 bps QoQ
YoY/QoQ comparison: Revenue up 29% YoY and 30% QoQ; PAT up 123% YoY and 15% QoQ
Drivers of financial performance: Higher volume growth, improved operational efficiency
Finance Cost: ₹0.25 crore in Q4 FY26, same as Q4 FY25 but up 353% QoQ
Depreciation: ₹0.75 crore in Q4 FY26, down 8% YoY and flat QoQ
Geographical Revenue Split
Not Specified
Balance Sheet Snapshot
Not Specified
Capex & Cash Flow Health
Not Specified
Strategic & R&D Initiatives
- Biotechnology: Evaluating opportunities in ethanol ecosystem and government's focus on biofuels
- Invested ₹50 lakhs to date primarily towards pilot R&D facility in Nagpur
- Enzyme manufacturing: Pursuing solid-state fermentation technology
- Welding division: Capacity to produce 3,600 tons of flux cored wire annually
- Currently manufacture seven grades across three categories: carbon steel, stainless steel, and hardfacing
Industry Trends & Business Environment
- India remains one of the most attractive long-term steel markets globally
- Supported by sustained investments in infrastructure, railways, housing, manufacturing, and government-led capital expenditure
- FY26 witnessed healthy growth in domestic steel production and improved trade dynamics
- Persistent unfair competition and pricing distortions continued to impact specialized downstream products
- Significant overcapacity in aluminium flipping coil segment
Management Commentary & Growth Outlook
- Strategic Outlook: "Our long-term vision remains centered on building a strong presence across steel and allied industries through cored wire, welding consumables, and other value-added opportunities"
- FY Guidance: Aim to achieve annual welding sales of ₹25 crore next year
- Risks: Persistent unfair competition and pricing distortions, significant overcapacity in certain segments
- Opportunities: Import substitution in flux cored wire business, expanding ethanol ecosystem, government focus on biofuels
Company Background
- Part of ₹650+ crore Desraj Bansal Group with interests in Metals and Energy sector
- India's leading manufacturer & exporter of cored wires & aluminium flipping coils
- 10,000 TPA cored wires capacity and 15,000 TPA aluminium flipping capacity
- Strategic location in Bhilai, Chhattisgarh in proximity to critical steel hub
- ISO 9001-2000 certified manufacturing units
- 425+ committed workforce, 30+ active clients
- 85% repeat client profile including steel plants, foundries, fabrication units
- 40% sales contribution from top 5 clients
Sustainability Initiatives
- Going Green with Biotechnology: Enzymes offer sustainable alternative to traditional chemical processes
- Usage of Aluminium Scrap: 75% of aluminium flipping coil production uses scrap, requiring only 5% of energy compared to ore reduction
- Solar Power: 400 KW of renewable energy used, resulting in approximately 50% reduction in electricity expenses due to captive consumption