Key Financial Figures - Q1 FY27 Performance

Profit & Loss Account (INR Crores):

  • Revenue from Operations: INR 320.5 Cr (16.0% YoY growth from INR 276.4 Cr in Q1FY26, 6.1% QoQ growth from INR 302.2 Cr in Q4FY26)
  • Cost of Goods Sold: INR 207.7 Cr
  • Gross Profit: INR 112.8 Cr (24.2% YoY growth from INR 90.8 Cr)
  • Employee Cost: INR 15.7 Cr
  • Other Expenses: INR 45.6 Cr
  • EBITDA: INR 51.5 Cr (14.7% YoY growth from INR 44.9 Cr, 4.3% QoQ growth from INR 49.4 Cr)
  • EBITDA Margins: 16.1% (vs 16.2% in Q1FY26 and 16.3% in Q4FY26)
  • Other Income: INR 2.7 Cr
  • Depreciation: INR 7.2 Cr
  • EBIT: INR 47.0 Cr (7.8% YoY growth from INR 43.6 Cr)
  • Finance Cost: INR 11.3 Cr
  • Profit before Tax: INR 35.7 Cr (5.6% YoY growth from INR 33.8 Cr)
  • Tax: INR 9.3 Cr
  • Profit After Tax: INR 26.4 Cr (6.5% YoY growth from INR 24.8 Cr, 3.9% QoQ growth from INR 25.4 Cr)
  • PAT Margins: 8.2% (vs 9.0% in Q1FY26 and 8.4% in Q4FY26)

Operational Highlights

Segment Performance:

  • Welded Pipes/Tubes revenue growth: 21% YoY
  • Seamless Pipes/Tubes revenue growth: 15% YoY
  • Domestic growth: 31% YoY
  • Exports: INR 94 Cr (approximately 30% of total revenue)

Order Book & Business Visibility:

  • Current order book: INR 450 Crores (increased ~2.5 times from previous levels)
  • Execution visibility: Increased from ~60 days to 5-6 months
  • LOI secured: INR 185 Cr order from leading data center player for SS Spool supply for cooling applications

Inventory Management:

  • Inventory days remain stable despite significant business scale-up
  • Inventory built-up reflects business expansion, export growth (exports require longer holding periods), product diversification, and requirements for inspection/approval-based orders

Strategic Initiatives & Capex Update

Forward Integration into Pipe Spooling:

  • Pipe spooling involves pre-fabricated piping assemblies comprising pipes, fittings, flanges and valves
  • Represents transition from stainless steel pipes to engineered piping solutions
  • Enables higher realization and stronger margins
  • Capex execution on track for commencement by end of year
  • Expected to improve utilization of welded pipes and fittings capacities

Capacity Expansion History:

  • Total installed capacity: 48,000 MTPA
  • Backward integration: ~20,400 MTPA mother hollow pipe manufacturing capacity
  • Seamless pipes: Expanded SKUs from 6mm-114.3mm to 6mm-219.3mm
  • Welded pipes: Expanded SKUs from 6mm-219.3mm to 6mm-1,422.4mm
  • Fittings: Expanded product portfolio into fittings

Management Commentary

From Mr. Arun Kothari, Managing Director:

  • "Entered FY27 on a strong note with highest-ever quarterly revenue of Rs. 320.5 crores"
  • "Sustained demand across key domestic end markets"
  • "Healthy enquiry levels and well positioned to capitalize on emerging opportunities"
  • "Expansion into fittings and value-added pipes received encouraging response"
  • "Intend to increase contribution of higher-value products to revenue mix"
  • "New-age sectors such as data centers, clean energy opening new opportunities"
  • "Export market: Geopolitical situation and freight rates remain areas of watch"
  • "Focused on operational efficiency and customer engagement"
  • "Confident in underlying demand environment and execution capabilities"

Historical Financial Context

FY22-FY26 Performance (INR Crores):

  • Revenue CAGR: 31.8% (INR 386.9 Cr in FY22 to INR 1,166.8 Cr in FY26)
  • PAT CAGR: 34.0% (INR 31.7 Cr in FY22 to INR 101.9 Cr in FY26)
  • EBITDA Margins improvement: 360 bps (12.7% in FY22 to 16.3% in FY26)
  • PAT Margins improvement: 50 bps (8.2% in FY22 to 8.7% in FY26)

Cash Flow Improvement:

  • Cash conversion ratio improved from 13% in FY23 to 59% in FY26
  • Operating cashflow growth significantly outpaced EBITDA growth
  • Focus on inventory optimization and receivables management

Business Overview

Manufacturing Facilities:

  • Location: Dhaneti (Kutch), proximity to Kandla & Mundra ports
  • Land bank: 2,66,282 sq. mt.
  • Equipped with Acid Regeneration Plant for reduced acid consumption
  • 1.3 MW solar power installed, additional 6.1 MW in progress
  • 100% daylight system and LED lighting for energy efficiency

Certifications & Accreditations:

  • ISO 9001:2015, ISO 14001:2015, ISO 45001:2018
  • TÜV NORD AD 2000 - Merkblatt W0 certification
  • IBR approval for boiler applications
  • BIS certification for seamless and welded pipes
  • NABL accreditation for testing laboratories

End User Industries:

Traditional: Engineering, Fertilizers, Heat Exchanger, Pharmaceuticals, Power, Food Processing, Paper, Oil & Gas, Automobiles

New Age: Data Centers, Nuclear, Solar Manufacturing, Aerospace, Semi Conductors

Global Presence:

  • Exports to 30+ countries
  • 80+ Fortune 500 companies in clientele base

Corporate Governance

Board of Directors:

  • Arun Kothari: Chairman & Managing Director, Chartered Accountant
  • Jayantiram M Choudhary: Whole Time Director, 14+ years steel industry experience
  • Megharam S Choudhary: Whole Time Director, 19+ years stainless steel pipes experience
  • Dhruv M Patel: Whole Time Director, Engineering degree from University of Pune, MTech from CEPT University
  • Independent Directors: Kailash Nath Bhandari, Pranay Ashok Surana, Komal Lokesh Khadaria, Shyam Agarwal

Management Team:

  • Kunal Bubna: Chief Financial Officer, Chartered Accountant with 18+ years experience
  • Pavan Kumar Jain: Company Secretary and Compliance Officer, 7+ years experience
  • Kumar Shishir C Sinha: President (Marketing), 34+ years experience in stainless steel pipes

Sustainability Initiatives

Environmental:

  • 98% hazardous waste disposed through co-processing in cement industry
  • 2% sent to landfill disposal
  • Miyawaki Forest with 17,000+ native trees planted
  • Solar energy utilization: 1.3 MW installed, 6.1 MW additional in progress
  • Energy-efficient infrastructure with daylight systems and LED lighting

CSR Activities:

  • Installed 200 LPH RO water purification systems at schools in Dhaneti village
  • Distributed school dresses and sweatshirts to students
  • Served nutritious meals to children in Bhavnagar with Akshay Patra Foundation
  • Donated computer systems to institution for Divyang children in Bhuj
  • Provided sweatshirts to Ukhadmora Primary School students

Vision & Way Forward

Strategic Objectives:

  • Become end-to-end integrated piping solutions provider
  • Enter new sectors with high growth potential (auto and other underpenetrated sectors)
  • Expand geographic footprint across domestic and international markets
  • Enhance portfolio towards value-added products
  • Differentiate through capacity expansion and product diversification