Financial Performance Highlights

Q4 FY26 Financials:

  • Revenue from operations: ₹302.2 crores (17% YoY growth from ₹258.1 crores in Q4 FY25)
  • EBITDA: ₹49.4 crores (19% YoY growth from ₹41.6 crores)
  • EBITDA margin: 16.3% (vs 16.1% in Q4 FY25)
  • PAT: ₹25.4 crores (7% YoY growth from ₹23.7 crores)
  • PAT margin: 8.4%
  • Revenue bifurcation: 59% from seamless pipes, 34% from welded pipes, 7% from others
  • Export sales: ₹87.8 crores (down from ₹112.5 crores in Q4 FY25 due to Middle East conflict)

FY26 Full Year Financials:

  • Revenue: ₹1,166.8 crores (22% growth)
  • EBITDA: ₹190.6 crores (14% growth)
  • EBITDA margin: 16.3%
  • EBITDA to CFO conversion: 59%
  • Volume growth: Approximately 15% for FY26

Operational and Capacity Updates

Capacity Expansion:

  • Total installed capacity now stands at 27,600 MTPA for welded pipes and 20,400 MTPA for seamless pipes
  • Previously planned 4,800 MTPA seamless expansion enhanced to 6,000 MTPA
  • Company is 100% backward integrated for 20,400 MTPA seamless capacity to manufacture mother hollow pipes
  • Entire capex program fully commissioned with total investment exceeding ₹200 crores

New Business Initiatives:

  • Forward integration into spooling solutions with ₹70 crores capex
  • Backed by ₹185 crores LOI from a leading data center operator
  • Facility expected to be operational within 15 months (by Q3 FY27)
  • Recently installed tandem JCO press for manufacturing longer welded pipes

Order Book and Business Development

  • Current order book: ₹450 crores
  • Additional LOI: ₹185 crores from data center segment
  • L1 status in BHEL tenders worth approximately ₹50 crores (expected order in 30-45 days)
  • Export percentage maintained at over 30% of revenue
  • Order book includes ~40% export orders

Management Guidance and Outlook

FY27 Expectations:

  • Revenue growth: More than 20%
  • Margin expansion: Higher than FY26's 16.3% EBITDA margin
  • Target: 17% EBITDA margin in FY27, moving to 18% by FY28
  • Volume growth guidance: More than 20%

Capacity Utilization:

  • FY26 utilization: Seamless ~90-95%, Welded ~60-65%
  • Asset turnover expectation: 3x at peak utilization for new capacities

Strategic Developments

  • Acquired additional 15 acres of land adjacent to existing facility for future expansion
  • Appointed senior marketing professional to enhance presence in emerging sectors (data centers, semiconductors, clean energy)
  • Exploring opportunities in CNG/PNG sector
  • Received new approvals from oil and gas sector in USA and Middle East

Market and Segment Performance

  • Export growth: 18% in FY26 despite global challenges
  • Europe remains strong market; US market showing demand
  • Domestic demand robust from power, oil & gas, engineering, and industrial applications
  • Emerging opportunities from data centers, semiconductor manufacturing, and solar manufacturing

Working Capital and Capex Plans

  • Net working capital: ~120 days
  • FY27 capex guidance: ₹90-100 crores (including maintenance capex)
  • Working capital requirements for new business expected to be similar to existing business

Management Participants

  • Mr. Arun Kothari - Managing Director
  • Mr. Dhruv Patel - Whole Time Director
  • Mr. Kunal Bubna - Chief Financial Officer
  • SGA - Investor Relations Advisors
  • Mr. Aasim Bharde from DAM Capital Advisors - Moderator