NewsEarningsMaharashtra Seamless Reports Q2 FY26 Results: EBITDA Down 27% Amid Industry HeadwindsMaharashtra Seamless Reports Q2 FY26 Results: EBITDA Down 27% Amid Industry Headwinds
Maharashtra Seamless Limited reported a decline in financial performance for Q2 FY26, with revenue down 5% to ₹1,234.00 crores, EBITDA down 27% to ₹123.00 crores, and PAT down 44% to ₹130.00 crores. The company maintained production volume at 103,000 tons of seamless pipes. Challenges include slowdown in oil and gas sector expenditure, Chinese dumping affecting the domestic industry, and notional inventory markdown. Despite headwinds, the order book improved by 20% to ₹1,378.00 crores. The company maintains an AA- credit rating and has a treasury of ₹3,115.00 crores. The Telangana finishing line project is progressing, with operations expected to commence by the end of the current financial year.
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Maharashtra Seamless Limited , a leading player in the seamless pipe industry, has reported its financial results for the second quarter of fiscal year 2026, revealing the impact of ongoing challenges in the oil and gas sector and Chinese dumping on the domestic market.
Financial Performance
The company's financial performance for Q2 FY26 shows a decline across key metrics:
| Metric | Q2 FY26 | Change (YoY) |
|---|---|---|
| Revenue | ₹1,234.00 crores | -5% |
| EBITDA | ₹123.00 crores | -27% |
| PAT | ₹130.00 crores | -44% |
Despite the challenging environment, Maharashtra Seamless maintained its production volume, dispatching 103,000 tons of seamless pipes in Q2 FY26, consistent with the previous quarter's performance.
Industry Challenges
The company's management attributed the margin pressure to three primary factors:
- Slowdown in oil and gas sector expenditure
- Continuous Chinese dumping affecting the entire domestic industry
- Notional inventory markdown due to IndAS requirements
Chinese imports now account for 20-25% of the total domestic industry size, significantly impacting margins across all players in the sector.
Order Book and Market Position
Despite the headwinds, Maharashtra Seamless reported a 20% improvement in its order book, which now stands at ₹1,378.00 crores. This growth in orders suggests potential resilience in the face of market challenges.
Financial Stability
The company maintains its highest credit rating of AA- over the past 11-12 years, reflecting its strong financial position. Additionally, Maharashtra Seamless reported a treasury of ₹3,115.00 crores, providing a substantial financial buffer.
Ongoing Projects
The Telangana finishing line project continues to progress, with ₹80.00 crores in purchase orders issued and ₹52.00 crores in payments made. The company expects this project to commence operations by the end of the current financial year.
Future Outlook
While the company faces significant challenges from Chinese dumping and the slowdown in the oil and gas sector, its maintained production volumes and improved order book suggest a degree of resilience. However, the management acknowledges that significant margin revival appears difficult in the current market conditions.
Maharashtra Seamless remains focused on its core competencies, with no immediate plans for diversification. The company's strategy continues to prioritize long-term stability and market leadership in the seamless pipe industry, despite short-term pressures on profitability.
Investors and industry observers will be watching closely to see how Maharashtra Seamless navigates these challenges in the coming quarters, particularly in light of the ongoing global economic uncertainties and sector-specific headwinds.
Historical Stock Returns for Maharashtra Seamless
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.04% | +0.56% | -0.90% | -19.38% | -7.36% | +361.59% |
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