Vibhor Steel Tubes profit falls 38% as costs outpace revenue growth
Vibhor Steel Tubes Limited saw its Q1FY27 net profit fall 38.6% to ₹1.93 crore due to rising raw material costs, even as revenue grew 27.2% to ₹293.7 crore. The Board re-appointed M/s S.K Agarwal & Associates as Cost Auditor for FY2027 and approved remuneration revisions for four directors.
*this image is generated using AI for illustrative purposes only.
Vibhor Steel Tubes Limited reported a standalone net profit of ₹1.93 crore for the first quarter ended June 30, 2026, marking a 38.6% year-on-year decline from ₹3.14 crore in Q1FY26. The company’s revenue from operations grew by 27.2% to ₹293.7 crore, up from ₹231.0 crore in the corresponding period last year, driven by higher sales volumes in its steel tube manufacturing segment. The divergence between revenue growth and profit contraction highlights margin pressure in the current quarter, as total expenses rose to ₹291.4 crore from ₹226.9 crore primarily due to increased raw material costs.
The Board of Directors approved the unaudited standalone and consolidated financial results on August 6, 2026, during a meeting held in Hisar. In the same meeting, the Board approved the reappointment of M/s S.K Agarwal & Associates, Cost Accountants, Mumbai (Registration No. 100322), as the Cost Auditor for the Financial Year 2026-27. This appointment was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with Schedule III Part A Para A, on the recommendation of the Audit Committee. M/s VD & CO., Chartered Accountants, were also reappointed as Internal Auditors for FY2027.
Financial Performance and Consolidated Results
While revenue expanded significantly, input costs weighed heavily on profitability. Raw material costs stood at ₹290.3 crore compared to ₹217.6 crore previously, and employee benefit expenses increased to ₹7.6 crore from ₹5.7 crore. Although changes in inventories provided a benefit of ₹3.30 crore, this was insufficient to offset the higher input costs, resulting in a pre-tax profit of ₹2.62 crore, down from ₹4.18 crore in the prior year period.
The company presented its consolidated financial results for the first time, incorporating its wholly owned subsidiary, Viyom Steel Infra Private Limited, incorporated on June 17, 2026. As Viyom Steel Infra is currently setting up operations, it incurred borrowing costs of ₹24,465, which were fully capitalized as Capital Work-in-Progress under Ind AS 23. Consequently, the consolidated net profit remains identical to the standalone figure at ₹1.93 crore.
Corporate Governance and Remuneration
Ashok Kumar Goyal & Co., Chartered Accountants, conducted the limited review of the financial results in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Board also approved revisions in remuneration for four directors for the balance period of their existing tenure, subject to shareholder approval at the Annual General Meeting scheduled for September 16, 2026.
| Director Name | Designation | Revised Remuneration Cap (Per Annum) |
|---|---|---|
| Vibhor Kaushik | Managing Director | ₹2.40 Crore |
| Vijay Kaushik | Executive Director & Chairman | ₹2.35 Crore |
| Vijay Laxmi Kaushik | Whole Time Director | ₹2.30 Crore |
| Pratima Sandhir | Whole Time Director | ₹2.40 Crore |
The revisions are effective from August 28, 2026, until August 28, 2028. The Nomination & Remuneration Committee was reconstituted with Sanjeev Gupta as Chairman, and Ashwani Kumar Garg and Vikram Grover as members.
Manufacturing Footprint
The company operates manufacturing units across three states:
- Maharashtra: Pipe Nagar (Vill. Sukeli), NH-17 BKG Road, Via – Nagothane, Teh. Roha, Distt. Raigad.
- Telangana: SY No. 515 & 516, Udithyala (V), Balanagar (M), Mahabubnagar (Dist.).
- Odisha: Plot No. 45, Podbahal, Bhasma-42, Sadar Sundargarh.
Historical Stock Returns for Vibhor Steel Tubes
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.26% | -1.97% | -5.97% | -8.08% | -32.46% | -75.74% |
How does management plan to mitigate the margin pressure caused by rising raw material costs in the upcoming quarters?
What is the expected timeline for Viyom Steel Infra Private Limited to commence commercial operations and contribute to consolidated revenue?
Will the proposed revision in director remuneration impact shareholder sentiment or voting outcomes at the upcoming AGM?
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