Key Operational Performance Metrics

Production Volumes (Q1 FY27)

  • Sponge Iron: 33,490 MT (up 2% YoY from 32,680 MT in Q1 FY26; up 12% QoQ from 20,820 MT in Q4 FY26)
  • Billets: 39,212 MT (down 11% YoY from 44,124 MT in Q1 FY26; up 3% QoQ from 37,919 MT in Q4 FY26)
  • TMT: 48,990 MT (up 5% YoY from 46,679 MT in Q1 FY26; up 10% QoQ from 44,666 MT in Q4 FY26)
  • Total Production: 121,692 MT (8% QoQ growth)

Sales Volumes (Q1 FY27)

  • TMT: 43,692 MT (up 8% YoY from 40,361 MT in Q1 FY26; down 16% QoQ from 51,859 MT in Q4 FY26)
  • Billets: Primarily utilized for captive consumption (marked as -* in the data)

Financial Performance

Q1 FY27 Financial Highlights (₹ crore unless specified)

  • Revenue: ₹1,873 crore (up 15% YoY from ₹1,622 crore in Q1 FY26; down 12% QoQ from ₹2,120 crore in Q4 FY26)
  • Gross Profit: ₹705 crore (up 1% YoY from ₹698 crore in Q1 FY26; up 1% QoQ from ₹697 crore in Q4 FY26)
  • Gross Margin: 27.3% (compared to 30.1% in Q1 FY26 and 24.7% in Q4 FY26)
  • EBITDA: ₹235 crore (up 21% YoY from ₹193 crore in Q1 FY26; up 71% QoQ from ₹137 crore in Q4 FY26)
  • EBITDA Margin: 9.1% (compared to 8.3% in Q1 FY26 and 4.9% in Q4 FY26)
  • Profit Before Tax: ₹173 crore (up 29% YoY from ₹134 crore in Q1 FY26; up 86% QoQ from ₹93 crore in Q4 FY26)
  • Profit After Tax: ₹130 crore (up 29% YoY from ₹100 crore in Q1 FY26; up 87% QoQ from ₹69 crore in Q4 FY26)
  • PAT Margin: 5.0% (compared to 4.3% in Q1 FY26 and 2.5% in Q4 FY26)
  • Diluted EPS: ₹2.18 (compared to ₹1.79 in Q1 FY26 and ₹1.29 in Q4 FY26)

Credit Profile

The company maintains CRISIL BBB+/Stable long-term and A2+ short-term credit ratings, reflecting disciplined financial management, resilient operating performance, and healthy financial profile.

Strategic Updates and Capex Plans

The company's strategic capex program continues to progress across three themes:

1. Expansion of billets capacity

2. Addition of downstream Pipe/Galvanizing/Wire Rod facilities

3. Development of an integrated steel ecosystem including pellet plants, captive power, coal washery, SMS & Concast, and downstream steel products

These initiatives aim to strengthen operational capabilities, enhance value addition, and improve efficiencies as part of the Vision 2031 growth roadmap.

Management Commentary

Mr. Rajesh Gadodia, Chairman, stated: "I am pleased to share that Scan Steels delivered a strong start to FY27, with revenue, EBITDA and PAT increasing by 11%, 21% and 29% on a YoY basis, respectively. The quarter's performance was supported by higher TMT realizations, an improved value-added product mix and continued operational efficiencies, resulting in EBITDA margin expanding to 9.1% from 8.3% in the corresponding quarter last year."

He further added: "Our integrated manufacturing operations continued to perform well, with TMT production increasing 5% YoY and TMT sales growing 8% YoY, reflecting the strength of our branded SHRISHTII TMT franchise and extensive distribution network. Looking ahead, we will continue to execute our strategic growth roadmap with a focus on capacity expansion, enhancing value addition, and strengthening profitability."