Maharashtra Seamless Q1 Revenue Dips 11% Amid Market Headwinds

2 min read     Updated on 04 Aug 2025, 12:24 PM
scanxBy ScanX News Team
whatsapptwittershare
Overview

Maharashtra Seamless Limited experienced a challenging Q1 with revenue falling 11% to Rs 1,303.00 crores. EBITDA dropped 41% to Rs 165.00 crores, while PAT declined 4% to Rs 234.00 crores. The company dispatched 103,000 tons of seamless pipes, but faced a slowdown in order booking, with the order book decreasing by Rs 400.00 crores to Rs 1,149.00 crores. Chinese dumping and reduced oil and gas sector expenditure were cited as key challenges. Despite operational difficulties, the company maintains a strong treasury position of Rs 2,919.00 crores and an AA+ credit rating. Ongoing projects include a finishing line in Telangana and a cold drawn pipes project in Maharashtra.

15836104

*this image is generated using AI for illustrative purposes only.

Maharashtra Seamless Limited , a leading seamless pipe manufacturer, reported a challenging first quarter, with revenue declining 11% to Rs 1,303.00 crores compared to the previous quarter. The company faced headwinds from Chinese dumping and reduced expenditure in the oil and gas sector, impacting its order book and financial performance.

Financial Performance

The company's EBITDA saw a significant drop of 41% to Rs 165.00 crores, while Profit After Tax (PAT) declined by 4% to Rs 234.00 crores. Earnings Per Share (EPS) stood at Rs 17.00 for the quarter. Despite the decline in operational performance, Maharashtra Seamless maintained a strong treasury position, which contributed Rs 160.00 crores to other income, helping to cushion the impact on the bottom line.

Operational Highlights

Maharashtra Seamless dispatched 1,03,000 tons of seamless pipes during the quarter. However, the company experienced a marked slowdown in order booking, which has persisted longer than anticipated. The order book stood at Rs 1,149.00 crores, down by Rs 400.00 crores quarter-on-quarter, reflecting the challenging market conditions.

Market Challenges

Kaushal Bengani, Deputy General Manager of Investor Relations and Finance, attributed the slowdown to two primary factors:

  1. Chinese dumping of seamless pipes
  2. Reduced expenditure in the oil and gas sector

These factors have led to a decline in sales realization and put pressure on margins. The company expects the September quarter to remain muted on the margin front.

Financial Position

Despite the operational challenges, Maharashtra Seamless maintains a strong financial position:

Metric Value
Treasury Rs 2,919.00 crores
Credit Rating AA+

Ongoing Projects

The company is progressing with two key projects:

  1. Finishing line in Telangana: Rs 80.00 crores in purchase orders issued
  2. Cold drawn pipes project in Maharashtra: Machine installations planned for August-September

Future Outlook

While the company faces near-term challenges, management remains focused on maintaining its market leadership position. Maharashtra Seamless is preparing for the renewal of anti-dumping duties and plans to petition for higher minimum import prices and broader product coverage to address Chinese dumping.

The company's cautious approach to expansion and strong cash position are expected to help weather the current market turbulence. However, recovery in the oil and gas sector spending will be crucial for improving order inflow and financial performance in the coming quarters.

Maharashtra Seamless continues to monitor market conditions closely and remains prepared to adapt its strategies to maintain its competitive edge in the seamless pipe industry.

Historical Stock Returns for Maharashtra Seamless

1 Day5 Days1 Month6 Months1 Year5 Years
-1.45%-5.73%-10.87%+3.01%+9.29%+529.44%
Maharashtra Seamless
View in Depthredirect
like15
dislike

Maharashtra Seamless Reports Strong Q1 FY26 Results with ₹233.86 Crore Net Profit

2 min read     Updated on 30 Jul 2025, 10:33 PM
scanxBy ScanX News Team
whatsapptwittershare
Overview

Maharashtra Seamless Limited announced Q1 FY26 results with net profit of ₹233.86 crore, up 72% year-on-year. Revenue increased 7.16% to ₹1,302.57 crore. EBITDA was ₹169.00 crore with 15% margin. EPS rose to ₹17.45. The company has a ₹1,149.00 crore order book and plans ₹852.00 crore in capital expenditure for capacity enhancement. Net cash balance stands at ₹2,914.00 crore.

15440600

*this image is generated using AI for illustrative purposes only.

Maharashtra Seamless Limited , a leading manufacturer of seamless and ERW pipes, has announced robust financial results for the first quarter of fiscal year 2026, ending June 30, 2025. The company reported a net profit of ₹233.86 crore, showcasing its continued strong performance in the market.

Financial Highlights

  • Revenue: The company's total revenue for Q1 FY26 stood at ₹1,302.57 crore, compared to ₹1,215.56 crore in the same quarter last year, marking a 7.16% year-on-year increase.
  • Net Profit: Maharashtra Seamless recorded a net profit of ₹233.86 crore, up from ₹135.95 crore in Q1 FY25, representing a significant 72% year-on-year growth.
  • EBITDA: The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the quarter was ₹169.00 crore, with an EBITDA margin of 15%.
  • Earnings Per Share (EPS): The Basic and Diluted EPS for the quarter stood at ₹17.45, compared to ₹10.15 in the same period last year.

Segment Performance

Maharashtra Seamless operates in multiple segments, with Steel Pipes & Tubes being its primary business. The segment-wise performance for Q1 FY26 is as follows:

  1. Steel Pipes & Tubes: This segment generated revenue of ₹1,126.44 crore, contributing significantly to the company's overall performance.
  2. Power - Electricity: The power segment reported revenue of ₹20.84 crore.
  3. Rig: The rig segment contributed ₹9.06 crore to the total revenue.

Order Book and Future Outlook

As of July 25, 2025, Maharashtra Seamless maintains a robust order book of ₹1,149.00 crore. The order book composition is as follows:

Order Type Amount (₹ crore) Percentage
ONGC & OIL orders 288.00 25%
Other orders 861.00 75%

The company's strong order book position indicates a positive outlook for the coming quarters.

Capital Allocation and Expansion Plans

Maharashtra Seamless has announced significant capital expenditure plans totaling ₹852.00 crore, aimed at enhancing its production capabilities and value-added offerings. Key investments include:

  • Heat treatment, finishing facilities, and EMI for capacity enhancement at Narketpally (USTPL)
  • Complete line for cold drawn pipes at Mangaon
  • OCTG line and billet pre-heating surface at Mangaon
  • Hot mill upgrade to PQF (14") at Nagothane

These investments are expected to increase the company's annual turnover substantially, with the potential to add approximately ₹1,900.00 crore to its top line.

Financial Position

Maharashtra Seamless continues to maintain a strong financial position with a net cash balance of ₹2,914.00 crore as of June 30, 2025. This robust liquidity provides the company with ample resources to fund its expansion plans and capitalize on growth opportunities in the market.

Management Commentary

Saket Jindal, Managing Director of Maharashtra Seamless Limited, commented on the results, stating, "Our Q1 FY26 performance demonstrates the resilience of our business model and the strength of our market position. The significant increase in net profit and the healthy order book underscore the growing demand for our products. We are excited about our expansion plans, which will further enhance our capabilities and drive long-term growth."

Maharashtra Seamless Limited's strong Q1 FY26 results, coupled with its strategic investments and solid order book, position the company well for continued growth in the pipes and tubes sector. As the company moves forward with its expansion plans, investors and industry observers will be keenly watching its performance in the coming quarters.

Historical Stock Returns for Maharashtra Seamless

1 Day5 Days1 Month6 Months1 Year5 Years
-1.45%-5.73%-10.87%+3.01%+9.29%+529.44%
Maharashtra Seamless
View in Depthredirect
like16
dislike
More News on Maharashtra Seamless
Explore Other Articles
Fineotex Chemical Expands Production Capacity with New Ambernath Facility 1 minute ago
GTT Data Solutions Forfeits 128,955 Partly Paid-Up Equity Shares Due to Non-Payment 12 minutes ago
Aegis Vopak Reports Q1 EBITDA Growth to ₹1.19 Billion, Approves ₹1,675 Crore Investment for New Terminal 8 minutes ago
Ginni Filaments Reports Robust Q1 Results with Significant Profit Growth 9 minutes ago
660.60
-9.75
(-1.45%)