Investor Presentation Summary: Q1 FY27 Earnings Update

Performance Highlights - Q1 FY27

Financial Performance:

  • Revenue from operations: ₹124.3 crore, increased 27.6% YoY from ₹97.4 crore in Q1 FY26
  • Gross profit: ₹39.8 crore, increased 40.0% YoY from ₹28.4 crore in Q1 FY26
  • Gross profit margin: 32.0%, improved by 283 basis points from 29.2% in Q1 FY26
  • EBITDA: ₹16.0 crore, increased 12.6% YoY from ₹14.2 crore in Q1 FY26
  • EBITDA margin: 12.9%, declined by 172 basis points from 14.6% in Q1 FY26
  • Profit before tax: ₹7.0 crore, declined 24.6% YoY from ₹9.3 crore in Q1 FY26
  • Profit after tax: ₹5.3 crore, declined 25.9% YoY from ₹7.1 crore in Q1 FY26
  • PAT margin: 4.2%, declined by 305 basis points from 7.3% in Q1 FY26
  • EPS: ₹0.9, declined 39.1% YoY from ₹1.4 in Q1 FY26

Operational Challenges:

The company faced temporary operational and external challenges during the quarter:

  • Global supply chain disruptions resulting in increased freight costs and raw material price volatility
  • Manufacturing facility experienced temporary gas supply disruption during April, affecting production for a couple of weeks
  • Manpower availability challenges impacting operational efficiency
  • Advance order booking cycle of approximately three to four months limited ability to immediately pass on higher input costs to customers

Management Commentary

Mr. Samarth B Patel, Chairman & Executive Director, stated that while these headwinds weighed on quarterly performance, they were largely transient in nature. The company has taken corrective measures to stabilize operations with gas supply restored, supply chains normalizing, and execution gaining momentum. The company remains committed to achieving its FY27 guidance as operations continue to stabilize and production ramps up at its seamless facility.

Capacity Expansion Update

  • Welded segment capacity expansion progressing as planned
  • Expected commissioning during H2 FY27
  • Current welded production capacity: 1,020 MTPA
  • Post-expansion welded capacity: 21,150 MTPA
  • Seamless production capacity: 20,068 MTPA (recently expanded from 10,068 MTPA)
  • Mother hollow capacity: 20,000 MTPA

Company Overview

Business Profile:

  • Fully integrated manufacturer of stainless steel seamless and welded products
  • Product categories: SS seamless pipes, SS seamless tubes, SS seamless "U" tubes, SS instrumentation tubes, SS welded tubes and "U" tubes
  • Serves multiple sectors: Oil & gas, chemicals, fertilizers, power, pharmaceuticals, automotive, and transportation

Manufacturing Facility:

  • Location: Ahmedabad-Mehsana highway, Village: Rajpur, Tal. Kadi, Dist. Mehsana, Gujarat
  • Plot size: 37,156 sq. mtrs currently developed
  • Available land for expansion: 74,699 sq. mts total, with 30,064 sq. mts reserved for welded products
  • Strategic location: 360 kms from Mundra port and 23 kms from Inland Container Depot

Certifications & Accreditations:

  • ISO 9001:2015, ISO 14001:2015, ISO 45001:2018
  • ASTM, ASME and EN standards
  • PED 2014/68/EU and ADW/AD 2000 - Merkblatt – WO for European sales
  • DNV-CP-0252, DNV Marine and Indian Boiler Regulation
  • Currently applied for Bureau Veritas Marine (France) and Rina Marine (Italy) standards

Financial History

Historical Performance (INR crores):

| Particulars | FY26 | FY25 | FY24 | FY23 | 3-year CAGR |

| Revenue | 518.7 | 484.9 | 399.9 | 305.1 | 19.3% |

| Gross profit | 165.4 | 148.5 | 137.9 | 92.5 | 21.4% |

| Gross margin | 31.9% | 30.6% | 34.5% | 30.3% | |

| EBITDA | 76.2 | 78.1 | 58.8 | 34.8 | 29.9% |

| EBITDA margin | 14.7% | 16.1% | 14.7% | 11.4% | |

| PAT | 38.8 | 31.7 | 18.3 | 10.3 | 55.4% |

| PAT margin | 7.5% | 6.5% | 4.6% | 3.4% | |

| EPS (INR) | 6.8 | 7.6 | 4.6 | 2.6 | 37.8% |

Geographic Revenue Split - Q1 FY27

  • Domestic market contribution disclosed but specific percentage not quantified in presentation
  • International presence across 32 countries
  • Catered to 349 clients globally to date

Growth Strategy

Key Strategic Initiatives:

1. Capacity Expansion: Increasing welded capacity from 1,020 MTPA to 21,150 MTPA

2. Geographic Expansion: Leveraging distributor network, product approvals, and wide portfolio

3. Brand Strengthening: Participation in international exhibitions, trademark protection, 20-person quality and customer service team

Captive Solar Project:

  • Ground Mounted Solar Plant in Gujarat
  • Capacity: 3.9 MW(AC) / 4.99 MW(DC)
  • Annual Generation: 7.74 Million KWH
  • Annual Saving in Electricity Bill: ₹4.87 crores
  • Benefits: Reduces power cost volatility, strengthens ESG positioning, improves long-term operation margins

Industry Overview

Global Demand:

  • Oil & gas and process industries dominate global demand for SS pipes and tubes
  • Global demand grew at ~3% CAGR from CY19-CY23
  • Expected to grow at 3-4% CAGR between CY23-CY28

India Outlook:

  • Strong growth in end-user industries: building and construction, automobile, oil and gas, manufacturing, food and beverage
  • Policy protection through anti-dumping duties on Chinese imports
  • Indian exports growing as domestic players compete at global prices
  • Demand drivers by sector:
  • Process industry: 28-32% of demand, 6-8% CAGR (FY24-29)
  • Oil & gas: 22-25% of demand, 6-8% CAGR (FY24-29)
  • ART: 20-23% of demand, 8-10% CAGR (FY24-29)
  • ABC: 18-21% of demand, 6-8% CAGR (FY24-29)

Management Team

Key Personnel:

  • Mr. Samarth B Patel - Chairperson & Executive Director (10+ years experience, oversees export sales and marketing)
  • Mr. Jagrut R Patel - Managing Director (10+ years experience, oversees domestic sales and marketing)
  • Mr. Saurabh A Patel - Non-Executive Director (10+ years experience, oversees project development)
  • Mr. Ravi R Patel - Chief Financial Officer (10+ years experience, responsible for accounts, payments and banking)
  • Mr. Vipul A Patel - President (10+ years experience, previously with Maxim Tubes Company Pvt. Ltd.)

Independent Directors:

  • Mr. Piyush Shah (CA)
  • Mr. Vipul Patel
  • Ms. Neha Soni (CS & LLB)