Hi-Tech Pipes Limited, a leading manufacturer of steel pipes and tubes, has announced its unaudited financial results for the first quarter of the fiscal year 2026, showcasing a remarkable improvement in its financial performance.

Strong Revenue Growth

The company reported a total income from operations of Rs 791.36 crore for the quarter ended June 30, 2025, marking a significant increase from Rs 733.74 crore in the corresponding quarter of the previous year. This represents a year-on-year growth of 7.85% in revenue.

Impressive Profit Surge

Hi-Tech Pipes witnessed a substantial surge in its profitability metrics:

• Net profit after tax skyrocketed to Rs 72.86 crore, up from Rs 17.49 crore in the same quarter last year, representing an impressive growth of 316.01%.
• Net profit before tax also saw a significant rise, reaching Rs 97.99 crore compared to Rs 27.97 crore in Q1 FY25, marking a 250.34% increase.

Enhanced Shareholder Value

The company's strong financial performance translated into improved returns for shareholders:

• Earnings per share (EPS) for the quarter stood at Rs 10.40, compared to Rs 3.98 in the corresponding quarter of the previous year, showcasing a substantial improvement in shareholder value.

Key Financial Metrics

Transparency and Compliance

In line with regulatory requirements, Hi-Tech Pipes has submitted its Monitoring Agency Report for the quarter ended June 30, 2025, regarding the utilization of proceeds from its Qualified Institutional Placement (QIP). The report, prepared by CRISIL Ratings Limited, indicates that the company is utilizing the funds in accordance with the stated objectives, including capital expenditure for expansion and repayment of borrowings.

Outlook

The robust first-quarter performance sets a positive tone for Hi-Tech Pipes Limited in FY26. The company's ability to significantly enhance its profitability while growing its revenue suggests improved operational efficiency and potentially favorable market conditions in the steel pipes and tubes sector.

Investors and stakeholders will likely keep a close watch on the company's performance in the coming quarters to see if this strong growth trajectory can be maintained amidst evolving market dynamics in the infrastructure and construction sectors, which are key demand drivers for Hi-Tech Pipes' products.

Hi-Tech Pipes Limited, a leading manufacturer of steel pipes and tubes, has reported the utilization of its Qualified Institutional Placement (QIP) proceeds for the quarter ended June 30. The company's monitoring agency, CRISIL Ratings Limited, has confirmed that the funds are being used in line with the stated objectives, with no deviations observed.

QIP Proceeds and Utilization

Hi-Tech Pipes raised Rs 5,007.89 million through a QIP conducted from October 7-11, resulting in net proceeds of Rs 4,732.89 million. As of June 30, the company has utilized Rs 3,883.43 million of the total proceeds, leaving Rs 850.46 million unutilized.

Breakdown of Fund Utilization

The utilization of funds has been allocated across three main objectives:

1. Capital Expenditure: Rs 550.54 million has been used for expansion projects, including:

   • Expansion of the existing manufacturing unit at Sanand, Gujarat
   • Setting up a new manufacturing unit at Sri City (Chinnapandru), Andhra Pradesh

   During the reported quarter, an additional Rs 300.00 million was utilized for these projects.

2. Debt Repayment: The company has fully utilized Rs 2,500.00 million for the repayment and/or pre-payment of certain outstanding borrowings.

3. General Corporate Purposes: Rs 832.89 million has been completely utilized for general corporate purposes.

Unutilized Funds

The remaining Rs 850.46 million of unutilized funds have been deployed in fixed deposits and mutual funds, earning returns between 6.5% to 6.7%.

Monitoring Agency Report

CRISIL Ratings Limited, acting as the monitoring agency, has reported no deviations from the stated objectives of the QIP. The agency confirmed that the company is utilizing the funds as per the purposes outlined in the offer document.

Hi-Tech Pipes Limited's strategic use of the QIP proceeds for expansion, debt reduction, and general corporate purposes demonstrates the company's commitment to growth and financial prudence. The expansion projects in Gujarat and Andhra Pradesh are expected to enhance the company's manufacturing capabilities, particularly in large diameter section pipes, which are in high demand in the construction and infrastructure sectors.

As the company continues to deploy the remaining funds, investors and stakeholders will be keenly watching the impact of these investments on Hi-Tech Pipes' future performance and market position in the steel pipes and tubes industry.