Hariom Pipe FY26 PAT rises 23%, solar project progresses
Hariom Pipe Industries reported a 23% YoY increase in PAT to INR 76 crores for FY26, driven by a 23% rise in revenue to INR 1,667 crores. Q4 PAT surged 75% to INR 30 crores. The company is advancing its 60 MW solar project, with 10 MW production scheduled to commence next month and full completion targeted by March 2027. For FY27, management targets volume growth of 20–25% to 350,000–360,000 tons, prioritizing profitability with EBITDA margins expected between 12.50% and 12.60%.
*this image is generated using AI for illustrative purposes only.
Hariom Pipe Industries reported a 23% year-on-year increase in profit after tax to INR 76 crores for the financial year ended March 31, 2026, supported by a 23% rise in revenue from operations to INR 1,667 crores. The company’s EBITDA grew by 19% to INR 209 crores, with margins remaining stable at 12.56%. For the fourth quarter, PAT surged 75% to INR 30 crores, while revenue increased 27% to INR 507 crores. The management attributed the performance to improved operating discipline, a focus on value-added products, and stronger cash generation, with operating cash flow reaching INR 192 crores.
Solar Power Project Execution
Hariom Pipe Industries is advancing its 60 MW solar power project through a subsidiary, Hariom Power & Energy Private Limited. The total estimated cost is INR 241–245 crores, funded by INR 195 crores in bank loans and INR 25–30 crores in equity. As of the latest update, INR 9.56 crores have been invested. Land acquisition is complete for eight locations covering approximately 123 acres, and construction has commenced at six sites.
| Parameter | Details |
|---|---|
| Total Project Capacity | 60 MW |
| Total Estimated Cost | INR 241–245 crores |
| Bank Loan Secured | INR 195 crores |
| Equity Contribution | INR 25–30 crores |
| Amount Invested So Far | INR 9.56 crores |
| Capacity Under Construction | 38 MW |
| Production Start (10 MW) | Next month |
| Full Completion Target | March 2027 |
Production from the initial 10 MW is scheduled to commence next month, with 38 MW currently under construction. The company expects the remaining capacity to be completed within the financial year, targeting full project completion by March 2027.
FY27 Guidance and Strategic Outlook
For FY27, the company targets sales volume growth of 20–25%, aiming for an absolute volume of 350,000 to 360,000 tons. Management emphasized that growth will prioritize profitability and margin preservation over aggressive volume expansion. The blended EBITDA per tonne for FY26 was INR 7,258, improving to INR 7,800 in Q4 FY26. The company aims to sustain EBITDA margins in the range of 12.50% to 12.60%.
| Parameter | Details |
|---|---|
| FY27 Volume Growth Target | 20–25% |
| FY27 Volume Target (Absolute) | 350,000–360,000 tons |
| FY26 EBITDA per Ton | INR 7,258 |
| Q4 FY26 EBITDA per Ton | INR 7,800 |
| Target EBITDA Margin | 12.50%–12.60% |
The company’s net debt to EBITDA ratio improved to 1.65x, while return on capital employed (ROCE) stood at 21%. Value-added products contributed 98% to full-year revenue. The management also noted that the temporary closure of the Tamil Nadu plant due to pollution control board orders did not impact April volumes, as operations were managed through existing stocks and an asset-light model.
Historical Stock Returns for Hariom Pipe Industries
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -4.54% | -3.20% | +16.55% | +14.43% | +3.23% | +73.74% |
How will the debt raised for the solar project impact the company's net debt-to-EBITDA ratio once fully operational?
What are the expected revenue contributions from the solar power project once the full 60 MW capacity is commissioned by March 2027?
Can the company sustain the Q4 EBITDA per tonne of INR 7,800 throughout FY27 given the target margin range of 12.50–12.60%?
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