Sambhv Steel Tubes Unveils ₹9,350 Crore Capacity Expansion Plan

Sambhv Steel Tubes Limited , a key player in India's steel industry, has announced plans to significantly expand its manufacturing capabilities. The company's Board of Directors approved two major capacity expansion projects on November 8, 2025, with a combined investment of approximately ₹9,350 Millions.

Cold Rolling Mill Expansion

The first project involves setting up a new Cold Rolling Mill for stainless steel at the company's Kuthrel Unit-II in Raipur, Chhattisgarh. This expansion will increase Sambhv's cold rolling capacity:

Particulars	Current	After Expansion
Capacity (MT per annum)	58,000	1,78,000
Investment (₹ in Millions)	-	180.00
Completion Timeline	-	Q4 FY2027

The company reports that its existing cold rolling mill is operating at 86% capacity utilization.

Greenfield Integrated Steel Manufacturing Project

The second project is a Greenfield Integrated Steel Manufacturing facility to be constructed at Village Kesda, Chhattisgarh. This project, originally planned to be executed through the company's subsidiary, will now be undertaken directly by Sambhv Steel Tubes Limited. The expansion includes:

Facility	Current Capacity	Post-Expansion Capacity
Induction Furnace	3,60,000 MT/annum	7,20,000 MT/annum
Hot Rolling Mill	4,50,000 MT/annum	8,10,000 MT/annum
Hot Rolled Annealing & Pickling	-	3,60,000 MT/annum
Power Plant	25 MW	50 MW

The estimated investment for this project is approximately ₹7,550 crore. Both expansions are scheduled to be operational by the fourth quarter of FY2027.

Financing and Strategic Rationale

Sambhv Steel Tubes plans to finance these expansions through a combination of internal accruals and debt. The company stated that the rationale behind these investments is to meet growing market demand for their products and to fulfill captive requirements.

Current Operations

The company's existing facilities are operating at high utilization rates:

Induction furnace: 84% capacity utilization
Hot rolling mill: 62% capacity utilization
Power plant: 88% capacity utilization

These expansions represent a major step for Sambhv Steel Tubes Limited, potentially positioning the company for growth in India's evolving steel market. The announcement comes at a time when India's steel sector is seeing increased demand, driven by infrastructure development and economic growth.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-2.98%	-6.26%	-11.67%	+3.31%	+3.31%	+3.31%

Sambhv Steel Tubes has reported a remarkable financial performance for the second quarter of fiscal year 2026, showcasing substantial growth across key metrics.

Financial Highlights

The company's unaudited standalone financial results for Q2 FY26 reveal:

Metric	Q2 FY26	Q2 FY25	YoY Change
Revenue	₹5,801.69	₹3,162.76	83.4% ↑
EBITDA	₹602.50	₹224.60	168.3% ↑
EBITDA Margin	10.39%	7.10%	329 bps ↑
Net Profit	₹300.00	₹55.00	445.5% ↑

Strong Revenue Growth

Sambhv Steel Tubes reported a robust revenue growth of 83.4% year-over-year, with total income reaching ₹5,812.43 Millions in Q2 FY26, compared to ₹3,176.40 Millions in the same quarter last year. This significant increase in revenue underscores the company's strong market position and growing demand for its products.

Profitability Surge

The company's profitability witnessed a remarkable improvement:

Net profit soared by 445.5% to ₹300 Millions, up from ₹55 Millions in Q2 FY25.
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) more than doubled to ₹602.5 Millions, representing a 168.3% increase from the previous year.
EBITDA margin expanded significantly to 10.39%, a 329 basis points improvement from 7.1% in Q2 FY25.

Operational Efficiency

The substantial increase in profitability indicates improved operational efficiency and effective cost management. Despite a 74.8% rise in total expenses to ₹5,409.81 Millions, the company managed to significantly boost its bottom line.

Half-Yearly Performance

For the half-year ended September 30, 2025:

Total income stood at ₹11,406.45 Millions, a 75.8% increase from ₹6,489.84 Millions in H1 FY25.
Net profit for H1 FY26 reached ₹633.64 Millions, more than doubling from ₹302.46 Millions in the same period last year.

Balance Sheet Strength

As of September 30, 2025, Sambhv Steel Tubes reported:

Total assets of ₹15,492.36 Millions, up from ₹14,344.96 Millions as of March 31, 2025.
A strong equity position with total equity increasing to ₹9,772.28 Millions from ₹4,960.46 Millions at the end of the previous fiscal year.

Future Outlook

The Board of Directors has approved capacity expansion plans, including:

Setting up a Cold Rolling Mill (Stainless Steel) at Unit II in Kuthrel, Raipur, to increase capacity from 58,000 MT to 178,000 MT per annum.
A Greenfield Integrated Steel Manufacturing Project in Village Kesda, Tehsil Simga, which will significantly boost the company's production capabilities.

These expansions are expected to be completed by Q4 FY27 and will be financed through a combination of internal accruals and debt.

Sambhv Steel Tubes' impressive Q2 results and strategic expansion plans position the company for continued growth in the Indian steel market. The significant improvements across all financial metrics reflect the company's strong operational performance and its ability to capitalize on market opportunities.