Vibhor Steel Tubes has approved the incorporation of a wholly-owned subsidiary named Viyom Steel Infra Private Limited to expand its presence in the infrastructure sector. The Board of Directors approved the proposal during a meeting held on June 4, 2026. The new entity will be established in Hisar, Haryana, and will specialize in manufacturing high-quality steel products such as transmission towers, monopoles, crash barriers, octagonal poles, High Mast Poles, and pre-fab structures.

The incorporation is subject to approval from the Ministry of Corporate Affairs. Vibhor Steel Tubes Limited will subscribe to the entire initial paid-up share capital of the subsidiary, amounting to ₹10,00,000, through cash consideration. This investment ensures 100% shareholding and control by the parent company. The filing was made in compliance with Regulation 30 of the SEBI (LODR) Regulations 2015.

Details of the Wholly-Owned Subsidiary

The subsidiary will operate under the Steel Products industry. Its primary business will involve serving the infrastructure sector exclusively. The following table outlines the key details of the incorporation:

The company stated that the move aligns with its strategic objectives to strengthen its product offerings for infrastructure development.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE0QTF01015/537680e05ea644a9.pdf

Vibhor Steel Tubes reported a 16.24% year-on-year increase in operating income to ₹335.13 crore for the quarter ended March 31, 2026, driven by capacity additions and strong demand. While EBITDA surged 26.15% to ₹15.34 crore, net profit declined 42.12% to ₹2.57 crore due to increased finance costs and depreciation following the commencement of operations at its Odisha plant. The company’s Board of Directors approved the audited financial results on May 20, 2026. Following the intimation dated May 15, 2026, filed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company provided access to the audio recording and transcript of the earnings call held on May 26, 2026, at 3:00 P.M. IST.

Financial Performance

For the full year ended March 31, 2026, operating income rose to ₹1,149.35 crore from ₹996.38 crore in the previous year. Profit for the year stood at ₹8.79 crore, a decrease from ₹11.77 crore in FY25. The decline in annual profitability was attributed to the ramp-up of the new facility in Odisha.

Operational Highlights

The company commenced commercial production at its greenfield plant in Sundargarh, Odisha, in July 2025. The facility, built with an investment of ₹119.83 crore, has a capacity of 156,000 MTPA and manufactures value-added products such as transmission line towers, crash barriers, and poles. This expansion increased the company’s total installed capacity to 3,77,000 MTPA. Capacity utilization for FY26 was recorded at 175,956 MTPA.

Strategic Outlook

Vibhor Steel is focusing on a strategic shift towards value-added infrastructure products to improve margins. The company targets a realignment of its product mix from a 90:10 ratio of GI Pipes to others, to a 75:25 ratio by FY28. Exports, which currently contribute 3%–5% of revenue, are expected to scale up 10x over the next five years. The company operates manufacturing units in Maharashtra, Telangana, and Odisha.

Management Commentary

During the earnings call, management highlighted that the new tower division has secured orders for 2,300 tons, primarily from Madhya Pradesh Electricity and Chhattisgarh. The pole division has an order book of 300 tons against an installed capacity of 150 tons, prompting an expansion to 300 tons. The company is targeting an installed capacity of 500 tons per month for octagon and high-mass poles. Additionally, CRISIL upgraded the company's rating from BBB to BBB+, validating its growth trajectory. The company is also progressing on certifications for monopoles, expected by Q2FY27.