Financial Performance Highlights

Q1 FY27 (Quarter Ended June 30, 2026):

  • Revenue from operations: INR320.5 crores (16% YoY growth from INR276.4 crores in Q1 FY26)
  • EBITDA: INR51.5 crores (14.7% YoY growth from INR44.9 crores in Q1 FY26)
  • EBITDA margin: 16.1% (vs 16.2% in Q1 FY26)
  • PAT: INR26.4 crores (6.5% YoY growth from INR24.8 crores in Q1 FY26)
  • PAT margin: 8.2%

Revenue Mix:

  • Seamless Pipes: 55% of revenue (15% YoY growth)
  • Welded Pipes: 39% of revenue (21% YoY growth)
  • Others: 6% of revenue

Geographical Performance:

  • Domestic revenue: INR227 crores (31% YoY growth)
  • Export revenue: INR94 crores (contributed 30% of total revenue)

Operational Updates

Capacity Utilization:

  • Seamless pipes: 85-90% utilization
  • Welded pipes: ~60% utilization

Order Book Position:

  • Strong order book of over INR600 crores (excluding LOI)
  • Additional Letter of Intent (LOI) of INR185 crores for spooling project
  • Total pipeline: ~INR800 crores
  • Order book mix: >40% export, balance domestic
  • Key sectors: Power, engineering, chemical, oil & gas

Expansion Projects:

1. Fittings Business: Commenced operations in May 2026

  • Customer approvals and certifications underway
  • Expected revenue contribution: 5-7% in FY27, 8-10% in FY28

2. Spooling Project:

  • Capex: INR70 crores
  • Targeted commissioning: End of Q3 FY27 (December 2026)
  • LOI from data center client: INR185 crores
  • Expected revenue contribution: 5% in FY27, 10-15% in FY28
  • Execution period: Before December 2027

Additional Capex:

  • Total FY27 capex guidance: INR100-110 crores
  • Breakdown: INR70 crores (spooling), INR15 crores (maintenance & solar plant), balance for fittings and machinery

Guidance and Outlook

Revenue Guidance:

  • Maintaining 20% growth guidance for FY27
  • Target to double business by FY29-FY30 (from FY26 base of ~INR1,250 crores)

Margin Guidance:

  • Targeting 18% EBITDA margin over next 2 years
  • FY27 expected margin: <17% (gradual improvement expected from Q2 onward)

Export Strategy:

  • Target to maintain >30% export contribution
  • Current export order book: >40%
  • Focus on geographical diversification and value-added products

Debt Position

  • Net debt as of June 30, 2026: INR325 crores

Market Opportunities

Emerging Sectors:

  • Data centers (SFN - secondary fluid network applications)
  • Solar energy
  • Semiconductor
  • CNG station infrastructure
  • Nuclear energy

Domestic Demand Drivers:

  • Oil & gas, chemical, pharmaceutical, engineering sectors
  • Infrastructure investment and manufacturing expansion
  • Increasing localization across industries

Management Commentary

  • Building comprehensive stainless steel engineering platform
  • Focus on becoming one-stop piping solution provider
  • Forward integration strategy (pipes → fittings → spooling)
  • Geopolitical tensions creating export environment uncertainty
  • Volume growth in Q1: >7% on blended basis