Sambhv Steel Tubes Limited , a leading manufacturer of structural pipes, tubes, and value-added products, has reported exceptional financial results for the first quarter of fiscal year 2026, marking its highest-ever quarterly performance.

Strong Financial Performance

The company's revenue from operations soared by 69% year-on-year to INR 559.00 crores in Q1 FY26, showcasing robust growth across its product segments. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) witnessed a significant increase of 58% YoY, reaching INR 73.00 crores, with margins holding strong at 13.00%. The company's Profit After Tax (PAT) grew by 35% YoY to INR 33.00 crores, demonstrating improved profitability.

Record-Breaking Sales Volume

Sambhv Steel Tubes achieved its highest-ever quarterly sales volume, registering a remarkable 50% year-on-year growth. The company's EBITDA per ton stood at an impressive INR 7,800.00, reflecting operational efficiency and strong market demand for its products.

Product Segment Performance

The company reported strong performance across its diverse product portfolio:

Successful IPO and Expansion Plans

Sambhv Steel Tubes successfully raised INR 440.00 crores through its Initial Public Offering (IPO) in July 2025, marking its debut on the stock exchanges. The funds raised are being utilized for debt repayment, meeting working capital needs, and supporting the company's ambitious expansion plans.

Capacity Expansion Initiatives

The company has received consent to enhance its GP coils and stainless steel coils capacity from 58,000 to 116,000 metric tons per annum each. This expansion is expected to be operational by the end of FY26, further strengthening Sambhv's market position.

Additionally, a major Greenfield project is underway at Kesda, with a planned capacity addition of 1.2 million tons of finished products across three phases. The first phase, expected to be commissioned by the end of FY27, will add 180,000 tons each of ERW pipes and stainless steel production capacity.

Management Commentary

Vikas Kumar Goyal, Managing Director and CEO of Sambhv Steel Tubes Limited, commented on the results, stating, "We are delighted to report our highest-ever quarterly performance, which reflects the strong demand for our products and our ability to capitalize on market opportunities. Our strategic investments in capacity expansion and product diversification are yielding positive results, and we remain committed to delivering sustainable growth and value to our stakeholders."

Outlook

With a robust order book, ongoing capacity expansions, and a focus on value-added products, Sambhv Steel Tubes is well-positioned to capitalize on the growing demand in the Indian steel and pipe industry. The company aims to maintain its EBITDA margins at around 13.00% in the coming quarters, despite seasonal fluctuations and market dynamics.

As Sambhv Steel Tubes continues to strengthen its market presence and expand its production capabilities, it is poised for sustained growth in the evolving Indian infrastructure and construction sectors.

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.