Sambhv Steel Tubes Doubles CR Mill Capacity; FY26 Revenue Up 60% to ₹2,413 Cr
Sambhv Steel Tubes has expanded its Cold Rolling Mill capacity at the Kuthrel unit to 1,16,000 MTPA, doubling from 58,000 MTPA. The company reported a landmark FY26 with revenue up 60% to ₹2,413 crores, PAT more than doubling to ₹143 crores, and Q4 FY26 EBITDA surging 91% to ₹92 crores. Management guided FY27 volume growth of 10%–15% with EBITDA per tonne of ₹7,000–₹8,000.
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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:
| Executive: | Designation |
|---|---|
| Mr. Vikas Kumar Goyal | Managing Director & CEO |
| Ms. Anu Garg | Chief Financial Officer |
| Mr. Bikash Agrawal | Additional Executive Director |
| Mr. Mayank Agrawal | AVP, CEO's Office & Investor Relations |
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:
| Metric: | FY26 Performance |
|---|---|
| Total Sales Volume Growth | 37% |
| Value-Added Product Volume | 3,56,000 tonnes (up 51%) |
| Revenue | ₹2,413 crores (up 60%) |
| EBITDA | ₹276 crores (up 79%) |
| EBITDA Margin | Over 11% |
| EBITDA per Tonne (ex-sponge iron) | ₹7,500 |
| PAT | ₹143 crores (more than doubled) |
| PAT Margin | 6% (up from 3.80%) |
| ROCE | 16% |
| Cash Conversion Cycle | 17 days |
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:
| Metric: | Q4 FY26 Performance |
|---|---|
| Revenue | ₹685 crores (up 38%) |
| EBITDA | ₹92 crores (up 91%) |
| EBITDA Margin | 13% |
| EBITDA per Tonne (ex-sponge iron) | ₹9,500 |
| PAT | ₹56 crores (more than doubled) |
| PAT Margin | 8% |
Product-Wise Realisations
Management shared product-wise realisations achieved during Q4 FY26, along with prevailing current market prices:
| Product: | Q4 FY26 Realisation | Current Market Price |
|---|---|---|
| Black MS Pipe | ₹55,000–₹60,000/tonne | ₹57,000–₹60,000/tonne |
| GP Pipes | ₹65,000–₹75,000/tonne | ~₹75,000/tonne |
| SS 200 Series | ₹1,20,000–₹1,35,000/tonne | ₹1,35,000/tonne |
| SS 300 Series | ₹1,80,000–₹1,90,000/tonne | ₹2,00,000–₹2,10,000/tonne |
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.
| Expansion Project: | Details |
|---|---|
| Kuthrel CR Mill Expansion | Capacity: 58,000 → 1,16,000 MTPA; consent to operate awaited |
| Kesda Greenfield (Phase 1) | 3,60,000 TPA stainless steel; commissioning Q4 FY27 |
| ERW Expansion via DFT | +1,50,000 TPA; estimated capex ₹50 crores |
| Captive Power Plant (Sarora) | 30 MW; estimated capex ₹150 crores |
| Total Announced Capex (Phase 1 Kesda) | ₹930 crores |
| Additional Operational Efficiency Capex | ₹200 crores |
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.
Historical Stock Returns for Sambhv Steel Tubes
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.01% | -2.86% | -9.57% | -0.67% | +9.47% | +9.47% |
How might the commissioning of the 3,60,000 TPA stainless steel capacity at Kesda in Q4 FY27 impact Sambhv Steel's competitive positioning against established stainless steel players like Jindal Stainless?
Given that peak long-term debt is projected at ₹800 crores, how vulnerable is Sambhv Steel's balance sheet to interest rate fluctuations or a potential slowdown in infrastructure spending that could compress EBITDA margins below the guided 10–12% range?
With HR coil supply tightening contributing to Q4 FY26's record margins, what is the risk of margin normalization in FY27 if domestic steel supply increases following capacity additions by major integrated steel producers?
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