Financial Performance Highlights

Q2 FY27 Results (Quarter Ended September 30, 2026)

  • Revenue from operations: INR 361.1 crores compared to INR 291.5 crores in Q2 FY26, registering growth of 23.9% year-on-year
  • EBITDA: INR 51.7 crores compared to INR 47.4 crores in Q2 FY26, growth of 9.1% year-on-year
  • EBITDA margin: 14.3% compared to 16.3% in corresponding quarter last year
  • Profit After Tax (PAT): INR 26.0 crores compared to INR 26.1 crores in Q2 FY26
  • PAT margin: 7.2%

H1 FY27 Results (Half Year Ended September 30, 2026)

  • Revenue from operations: INR 681.6 crores compared to INR 568.0 crores in H1 FY26, growth of 20% year-on-year
  • EBITDA: INR 103.2 crores, registering growth of 11.8% year-on-year
  • EBITDA margin: 15.1%

Operational and Business Metrics

Revenue Mix (Q2 FY27)

  • Seamless pipes: 54.7% of revenue
  • Welded pipes: 37.6% of revenue
  • Fittings: 2.5% of revenue
  • Other products: 5.2% of revenue

Export Performance

  • Export sales: INR 147.2 crores (all-time high) compared to INR 115.6 crores in Q2 FY26
  • Export contribution: 41% of total revenue
  • Export growth: Over 50% sequential growth
  • Key export markets: USA (dominant), Europe, Middle East

Capacity Utilization

  • Welded pipes: More than 60% utilization in Q2
  • Seamless pipes: More than 80% utilization in Q2
  • Expected to increase to 65-70% for welded and above 90% for seamless in H2

Strategic Developments and Order Book

Preferential Allotment

  • Raised INR 372 crores through preferential allotment to investors
  • Primary objective: Repayment of borrowings
  • Amount used for debt repayment: INR 344 crores
  • Expected annual interest savings: INR 28-30 crores
  • Benefit expected to reflect from H2 FY27 onwards

Spooling Business Development

  • Commenced spooling operations ahead of original timeline
  • Received firm order of approximately INR 29 crores from data center customer
  • Outstanding Letter of Intent (LOI): INR 156 crores remaining
  • Expected conversion timeline: Next 12 months, completion by Q2 FY28
  • Phased approach planned: Data centers → Power sector → Oil & gas → Nuclear sector

Order Book Position

  • Total order book: Over INR 670 crores (including INR ~30 crores data center order)
  • Pipe order book: INR 640 crores
  • Order book growth: More than 30% year-on-year
  • Execution timeline: 4-5 months for current order book

Margin Analysis and Cost Factors

EBITDA Per Kg Metric

  • Q2 FY27: INR 62 per kg (excluding fittings)
  • Q2 FY26: INR 64 per kg
  • Primary reason for decline: Increased freight and fuel costs

Margin Impact Factors

  • Selling prices increased by more than 10% year-on-year and more than 5% sequentially
  • Excluding price increase impact, Q2FY27 EBITDA margin would have been ~15.5%
  • Higher export freight and fuel costs further impacted margin
  • Excluding these costs, EBITDA margin would have been above 16%

Cost Structure

  • Power and fuel cost: Approximately 3.5% of revenue (increased by ~1% from April 2026)
  • Employee expense: Increased by 34% year-on-year due to capacity expansion and plant additions

Growth Outlook and Guidance

Volume Growth

  • H1 volume growth: ~8% year-on-year
  • Full year volume growth target: ~15% year-on-year
  • Growth drivers: Both seamless and welded pipes, with additional contribution from fittings and spooling

Revenue Guidance

  • Targeting 20%+ revenue growth for full year
  • H2 expected to be stronger with spooling and fittings contribution
  • Fittings business target: INR 40-50 crores in H2 (vs INR 9 crores in H1)
  • Data center spooling target: ~INR 70 crores in H2

Margin Outlook

  • Pipe business margin expected to improve with freight cost normalization
  • Data center spooling: Targeting EBITDA margin above 30%
  • Fittings business: Targeting EBITDA margin of 17-18%
  • Power sector spooling: Targeting EBITDA margin around 30%
  • Oil and gas sector: Targeting EBITDA margin between 20-25%
  • Nuclear sector: Targeting EBITDA margin of 35-40%

Capacity Expansion and Capex

Current Capex

  • H1 capex spend: INR 105 crores
  • Full year capex guidance: INR 130-140 crores
  • H2 capex expected: INR 30-35 crores

Capex Components

  • New expansion: INR 60-65 crores for spooling and fittings
  • Solar power plant: INR 25-30 crores
  • Maintenance capex: Balance amount

Future Capacity Plans

  • Planning new capacity enhancement for spooling business
  • Expected operational by January or February
  • Capacity capable of handling INR 250-300 crores annual business
  • Further capacity expansion consideration in Q4

Working Capital and Financial Position

Net Working Capital

  • NWC on sales: Approximately 120 days
  • Debtor days: Approximately 75-80 days on sales

Interest Cost

  • Q2 FY27 interest cost: INR 14 crores
  • Expected H2 interest saving: INR 12-13 crores due to debt repayment

Market and Sector Developments

Export Market Dynamics

  • USA: Dominant export market, contributing more than 50% of export order book
  • Europe: Contributing around 40% of export order book
  • Middle East and others: Balance
  • Quota issues in Europe: No significant impact, decreased by 15-20% year-about but exports still running

Demand Sectors

  • Established sectors: Power, engineering, oil and gas continuing to support growth
  • Emerging sectors: CNG station infrastructure, semiconductor, solar power showing encouraging inquiries
  • Data centers: New segment with significant potential

Global Challenges

  • Ongoing conflict in Middle East affecting operations
  • Higher energy and commodity prices
  • Disruption in shipping routes and supply chains
  • Rising freight costs putting pressure on business

Management Participants

  • Mr. Arun Kothari – Managing Director
  • Mr. Dhruv Patel – Whole-Time Director
  • Mr. Kunal Bubna – Chief Financial Officer
  • SGA – Investor Relations Advisors
  • Moderator: Mr. Dhruv Jain – Ambit Capital