Sambhv Steel Tubes has unveiled an ambitious growth strategy, targeting a substantial increase in revenue and production capacity over the next few years. The company's bold plans include doubling its revenue and significantly expanding its stainless steel and pipe manufacturing capabilities.

Revenue Targets and Current Performance

Sambhv Steel Tubes has set its sights on achieving a revenue of Rs 4,500.00 crore by FY28, a significant leap from its projected revenue of Rs 2,200.00-2,300.00 crore in FY26. The company's growth trajectory is already evident, with Q1FY26 revenue reported at Rs 558.00 crore.

Expansion Plans

Managing Director and CEO Vikas Goyal outlined the company's expansion strategy:

• Increase stainless steel capacity by 200%
• Boost pipe capacity by 50%
• Shift product mix towards stainless steel:
  • 30% by FY26
  • 40% in the following year
  • 50% by FY28

New Manufacturing Facility

Central to Sambhv Steel Tubes' growth plan is a new 1.2 million-tonne plant in Kesda, Chhattisgarh. The plant will be executed in three phases:

• First phase to commence by the end of FY27
• Each phase will add 180,000 tonnes of pipes and stainless steel capacity

Financial Health and Strategy

Chief Strategy Officer Bikash Agrawal highlighted the company's strong financial position:

• Virtually debt-free status
• Monthly free cash flow of Rs 20.00 crore
• Enterprise debt to remain below 0.5 times equity base
• Total debt capped under Rs 500.00 crore

Competitive Advantages

Goyal emphasized several factors contributing to the company's competitive edge:

• Backward integration model
• Strategic location in mineral-rich Chhattisgarh
• India's projected 8-10% annual infrastructure growth
• Reduced stainless steel imports driving future growth

Sambhv Steel Tubes' aggressive expansion plans and strong financial footing position the company to capitalize on India's growing infrastructure needs and the evolving stainless steel market landscape.

Sambhv Steel Tubes Limited has announced robust financial results for the first quarter, alongside ambitious expansion plans that signal strong growth prospects for the company.

Record-Breaking Q1 Performance

The company reported its highest-ever quarterly performance across key metrics:

• Revenue surged by 69% year-over-year to ₹5,586.29 crore
• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) grew by 58% to ₹727.00 crore
• Profit After Tax (PAT) increased by 35% to ₹334.00 crore

This stellar performance was driven by increased sales volumes and improved capacity utilization, particularly in the Pre-galvanized (GP) Pipes and Stainless Steel divisions.

Expansion Plans

In a significant move, Sambhv Steel Tubes has unveiled plans for a 1.2 million tonnes per annum (MTPA) capacity expansion. This strategic initiative aims to boost the company's value-added products portfolio and maintain high-margin growth through FY27.

The expansion strategy includes:

1. Developing coastal distribution capabilities to enhance market reach
2. Focusing on high-margin value-added products such as CRFH Pipes, SS CR Coil, and Galvanised Coils & Pipes

Capacity Enhancement

The company has received Consent to Establish (CTE) for doubling its GP coils and Stainless Steel CR coils capacity from 58,000 MTPA to 116,000 MTPA each. This move is expected to strengthen Sambhv Steel Tubes' position in the value-added products segment.

Environmental Clearance Progress

A public hearing for Environmental Clearance of the Kesda Plant was successfully conducted by the Chhattisgarh Environment Conservation Board, marking a crucial step in the company's expansion plans.

Management Commentary

Mr. Suresh Goyal, Chairman & Executive Director, stated, "Sambhv Steel Tubes Limited, recognized as a single-location backward-integrated producer of structural pipes and tubes along with stainless steel coils, marked a key achievement with its debut on India's premier stock exchanges. With a diversified product portfolio & integrated presence across the pipes, tubes, & stainless steel value chain, we remain committed to sustainable growth."

He added, "Sambhv is well-positioned to capitalize on rising demand and lead India's steel industry."

The company's strategic expansion and focus on value-added products, coupled with its strong Q1 performance, position Sambhv Steel Tubes Limited for continued growth in the competitive steel industry landscape.