Sambhv Steel Tubes Limited has secured the Consent to Establish (CTE) for its proposed Cold Rolling Mill (Stainless Steel) project at Kuthrel Unit-II. The approval was issued by the Chhattisgarh Environment Conservation Board, under the aegis of the Government of India’s Ministry of Environment, Forest and Climate Change, IA Division, on May 14, 2026.

Project Details

The regulatory consent authorizes sambhv steel tubes to establish a new manufacturing facility dedicated to cold rolling stainless steel. The unit is to be located at Village Kuthrel, Tehsil Dharsiwa, District Raipur, Chhattisgarh. The project is designed with a substantial production capacity, targeting an output of 1,18,000 Metric Tonnes per annum.

Regulatory Compliance

The company informed the stock exchanges regarding this development under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This disclosure serves as a continuation of the company's earlier intimation dated November 08, 2025, which had initially outlined the plans for setting up the manufacturing facilities at the Kuthrel Unit-II.

The management noted that the delay in submitting this intimation was due to internal discussions and procedural formalities. The disclosure was submitted to the exchanges immediately upon the completion of these internal processes.

Sambhv Steel Tubes has expanded its Cold Rolling Mill capacity at the Kuthrel unit to 1,16,000 MTPA, doubling from the earlier capacity of 58,000 MTPA. The company also released the full transcript of its Q4 FY26 earnings conference call held on May 11, 2026, pertaining to the audited financial results for the quarter and year ended March 31, 2026. The filing was made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and was submitted to both the National Stock Exchange of India Limited and BSE Limited on May 15, 2026. The call was hosted by senior management and moderated by Mr. Sahil Sanghavi of Monarch Networth Capital Limited.

Conference Call Details

The earnings call was held on Monday, May 11, 2026, at 5:00 PM IST, organised in association with Monarch Networth Capital. The following senior executives participated in the call:

FY26 Annual Financial Highlights

Management described FY26 as a landmark year for the company, reporting broad-based growth across all key financial metrics. Sales volume reached an all-time high of 3,96,000 tonnes, while value-added product volumes grew to 3,56,000 tonnes. The following table summarises the full-year performance:

Q4 FY26 Quarterly Financial Highlights

The fourth quarter marked the company's highest-ever revenue, EBITDA, and PAT performance. Management attributed the strong quarterly margins to favourable raw material procurement timing, with iron ore and coal purchased at lower prices in Q3 being utilised in Q4, alongside an improvement in finished product prices driven by tighter HR coil supply in the market. Key quarterly metrics are presented below:

Product-Wise Realisations

Management shared product-wise realisations achieved during Q4 FY26, along with prevailing current market prices:

Capacity Expansion and Strategic Initiatives

A key development in the company's capacity expansion programme is the doubling of Cold Rolling Mill capacity at the Kuthrel unit to 1,16,000 MTPA from 58,000 MTPA, with consent to operate expected imminently. Management provided further updates on ongoing and planned expansion projects. The greenfield project at Kesda and Kuthrel-2 are progressing as scheduled, with the first phase of 3,60,000 tonnes per annum of stainless steel capacity on track for commissioning in Q4 FY27. ERW pipes and tubes capacity is also being expanded by 1,50,000 tonnes per annum through Direct Forming Technology (DFT) at an estimated capex of ₹50 crores, which will take total ERW capacity to 0.50 million tonnes per annum upon completion. A 30 megawatt captive power plant at Sarora, with an estimated capex of ₹150 crores, has completed its public hearing and is expected to make the Sarora unit fully self-sufficient in power. The company has also signed an MOU with the Ministry of Steel under the PLI scheme 1.2 for stainless steel CR coils and has executed six additional MOUs under its co-branding initiative for stainless steel pipe manufacturing, bringing the total to 10 active MOUs.

Capex Funding and Debt Metrics

Management clarified the funding structure for announced capex. Of the ₹930 crores Kesda Phase 1 capex, approximately ₹300 crores has already been spent, leaving a balance of approximately ₹630 crores. The company has planned to raise approximately ₹675 crores in term loans for the Kesda capex. The additional ₹200 crores of operational efficiency capex will be funded through a combination of internal accruals and debt, with a maximum of ₹150 crores expected to be raised as debt. Management stated that peak long-term debt is expected to reach approximately ₹800 crores, with working capital debt of ₹200 crores to ₹300 crores. The company's internal debt guardrails stipulate that long-term debt will not exceed 1.50 times net worth and will not exceed 1.50 times forward EBITDA.

Long-Term Capacity Vision and Market Outlook

Management outlined a target of 2 million tonnes of finished product capacity by 2030, comprising approximately 10 lakh tonnes of MS pipes and tubes, 3 lakh tonnes of coated products, and 7 lakh tonnes of stainless steel coils. The company aims to achieve 10% to 12% market share in both MS coil and pipe, and stainless steel flat products and coil by 2030. For FY27, management guided for volume growth of 10% to 15% over FY26 and an EBITDA per tonne in the range of ₹7,000 to ₹8,000 on average. EBITDA margin is expected to operate in a 10% to 12% range, with PAT margin guided at 5%, plus or minus 1%. Management also noted that the working capital cycle is expected to remain in the 17 to 25 days range in FY27, potentially expanding to 25 to 30 days as the stainless steel business scales up and changes the product mix.

The filing was signed by Niraj Shrivastava, Company Secretary and Compliance Officer (Membership No. F8459), on May 15, 2026.