News Earnings Shankara Buildpro Limited Reports Strong Q3 FY26 Performance with 37% Steel Volume GrowthShankara Buildpro Limited Reports Strong Q3 FY26 Performance with 37% Steel Volume Growth
Shankara Buildpro Limited reported strong Q3 FY26 results in its first earnings call post-demerger, with steel volumes growing 37% YoY to 2.61 lakh tonnes and total revenue reaching Rs.1666 crores (29% growth). The company's western region expansion strategy proved successful, contributing significantly to volume growth. Nine-month PAT grew 77% to Rs.86.5 crores with ROCE at 37%. While steel segment performed robustly, non-steel sales faced challenges due to construction activity slowdown. Management remains optimistic about achieving 1 million tonnes steel volume target for FY26.
*this image is generated using AI for illustrative purposes only.
Shankara Buildpro Limited conducted its inaugural earnings conference call on February 12, 2026, marking a significant milestone as the first such call following the company's demerger from Shankara Building Products Limited. The company was listed on both NSE and BSE on January 9, 2026, establishing itself as an independent entity in the building materials marketplace.
Strong Steel Segment Performance
The company delivered robust performance in its steel segment during Q3 FY26, demonstrating strong market traction across its operational territories. Steel demand remained resilient across all regions, supported by increased infrastructure spending by the central government and substantial growth in steel buildings and industrial projects.
| Performance Metric: | Q3 FY26 | Q3 FY25 | Growth (%) |
|---|---|---|---|
| Steel Volume: | 2.61 lakh tonnes | - | 37% |
| Steel Sales: | Rs.1520 crores | - | 34% |
| Total Revenue: | Rs.1666 crores | - | 29% |
For the nine-month period, steel sales volume reached 7.27 lakh tonnes with 38% year-on-year growth, while steel sales stood at Rs.4384 crores. The overall top line for nine months FY26 was Rs.4829 crores, reflecting 30% year-on-year growth.
Regional Expansion Strategy Drives Growth
The company's aggressive expansion into western geographies emerged as a key growth driver. Management highlighted that approximately 50% of volume growth came from the western region, particularly Maharashtra, Gujarat, and Madhya Pradesh. The western region currently contributes close to 17% of the steel business, while the southern region maintained around 20% growth.
Shankara Buildpro operates through 94 stores and 36 fulfillment centres spread across Tier 1, 2, and 3 cities in 10 states and 1 Union Territory, covering over 5.3 lakh square feet of retail space. The company positions itself as the largest retailer and distributor of steel pipes and tubes in India.
Financial Performance and Margins
The company maintained healthy profitability metrics despite market challenges. EBITDA margins for Q3 FY26 came in at Rs.55 crores at 3.30%, compared to 2.75% year-on-year. For the nine-month period, EBITDA stood at Rs.158 crores at 3.28%, against 2.8% in the previous year.
| Financial Metric: | 9M FY26 | Performance |
|---|---|---|
| Profit After Tax: | Rs.86.5 crores | 77% growth YoY |
| ROCE: | 37% | - |
| Working Capital: | Under 30 days | - |
| EBITDA Margin: | 3.28% | vs 2.8% YoY |
The company's asset-light marketplace model continues to deliver superior return on capital and higher capital efficiencies.
Non-Steel Segment Challenges
While steel performance remained strong, the non-steel segment faced headwinds during the quarter. Non-steel sales stood at Rs.146 crores for Q3 and Rs.445 crores for the nine-month period. The entire industry across multiple products including tiles, plumbing, and sanitary ware faced similar challenges.
Several factors contributed to the slower non-steel growth:
- Weak export markets and raw material pricing volatility
- Elongated monsoon causing construction activity delays
- Government policy changes in some southern states
- Overall demand slowdown in construction activities
Management Outlook and Targets
Management expressed optimism about closing FY26 on a healthy note and achieving the target of 1 million tonnes in steel volume. The company maintains its long-term revenue target of Rs.10,000 crores by 2030, with non-steel products expected to contribute 20% of revenue by that time.
For EBITDA margins, management guided for 3% to 3.5% over the next two years, with aspirations to reach 4% thereafter. The company plans to add three to four stores in the coming financial year where strategic fit is identified, with average CAPEX of around Rs.3 crores per hybrid store including inventory.
Inventory Management and Market Dynamics
The company demonstrated effective inventory management during Q3 FY26, avoiding significant inventory losses despite steel price volatility throughout October and November. Management attributed this to careful purchase planning and price guarantees from suppliers based on volume commitments.
With steel prices increasing substantially since December 2025, management indicated potential inventory gains in Q4 FY26. The company maintains inventory levels of approximately 80,000-85,000 tonnes, positioning it to benefit from favorable price movements.
19
