News Earnings Tamilnadu Steel Tubes Reports Q3FY26 Results with Revenue Growth and Leadership ChangesTamilnadu Steel Tubes Reports Q3FY26 Results with Revenue Growth and Leadership Changes
Tamilnadu Steel Tubes announced Q3FY26 results showing mixed performance with revenue growth of 17.70% to ₹1,896.19 lakhs but reported a net loss of ₹0.33 lakhs compared to profit of ₹1.88 lakhs in Q3FY25. The company achieved strong nine-month revenue growth of 23.70% and implemented significant leadership changes including resignation of Wholetime Director Mr N Sudharsan and appointment of Mr Ashok Kumar Shukla as replacement.
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Tamilnadu Steel Tubes Limited announced its unaudited financial results for the quarter ended December 31, 2025, presenting a mixed performance with revenue growth accompanied by quarterly profitability challenges. The Chennai-based manufacturer and exporter of MS & GI square and rectangle steel pipes reported these results following their Board of Directors meeting held on February 14, 2026, which also addressed significant leadership changes.
Quarterly Financial Performance
The company's Q3FY26 results showed contrasting trends in revenue and profitability metrics compared to the previous year.
| Financial Metric: | Q3FY26 | Q3FY25 | Change |
|---|---|---|---|
| Net Sales: | ₹1,896.19 lakhs | ₹1,611.15 lakhs | +17.70% |
| Total Income: | ₹1,901.94 lakhs | ₹1,614.81 lakhs | +17.78% |
| Total Expenses: | ₹1,900.51 lakhs | ₹1,612.68 lakhs | +17.84% |
| Profit Before Tax: | ₹1.43 lakhs | ₹2.13 lakhs | -32.86% |
| Net Profit/(Loss): | ₹(0.33) lakhs | ₹1.88 lakhs | Loss |
The revenue growth of 17.70% demonstrates strong demand for the company's steel tube products, with net sales reaching ₹1,896.19 lakhs compared to ₹1,611.15 lakhs in Q3FY25. However, the company reported a net loss of ₹0.33 lakhs against a profit of ₹1.88 lakhs in the corresponding quarter of the previous year.
Cost Structure Analysis
The expense breakdown reveals key operational dynamics during the quarter:
| Expense Category: | Q3FY26 | Q3FY25 | Change |
|---|---|---|---|
| Raw Material Cost: | ₹1,677.85 lakhs | ₹1,501.05 lakhs | +11.78% |
| Employee Benefits: | ₹127.39 lakhs | ₹103.79 lakhs | +22.73% |
| Finance Costs: | ₹12.21 lakhs | ₹17.54 lakhs | -30.39% |
| Other Expenses: | ₹100.95 lakhs | ₹70.47 lakhs | +43.26% |
Raw material costs increased by 11.78% to ₹1,677.85 lakhs, reflecting higher input prices in the steel industry. Employee benefits expenses rose significantly by 22.73% to ₹127.39 lakhs, while finance costs decreased by 30.39% to ₹12.21 lakhs, indicating improved debt management.
Nine-Month Performance
The nine-month results for the period ended December 31, 2025, showed more positive trends:
| Parameter: | 9M FY26 | 9M FY25 | Growth |
|---|---|---|---|
| Net Sales: | ₹6,618.68 lakhs | ₹5,350.75 lakhs | +23.70% |
| Net Profit: | ₹9.45 lakhs | ₹14.88 lakhs | -36.49% |
| Earnings Per Share: | ₹0.18 | ₹0.29 | -37.93% |
The company achieved robust revenue growth of 23.70% for the nine-month period, with net sales reaching ₹6,618.68 lakhs compared to ₹5,350.75 lakhs in the previous year. Despite lower profitability, the company maintained positive earnings with a net profit of ₹9.45 lakhs.
Leadership Changes and Board Decisions
The Board meeting on February 14, 2026, addressed several significant organizational changes:
| Development: | Details |
|---|---|
| Director Resignation: | Mr N Sudharsan resigned as Wholetime Director due to age (70 years) and health conditions |
| New Appointment: | Mr Ashok Kumar Shukla appointed as Wholetime Director |
| Works Manager: | Mr Manoj Kumar Sharma appointed as Works Manager |
| Banking Changes: | Cheque signing powers updated at City Union Bank Ltd |
The Board also approved strategic initiatives including purchase of electricity from solar power manufacturers to reduce costs and acquisition of new machinery to increase production capacity. Additionally, the company is implementing compliance measures for the Digital Personal Data Protection Act 2023 and recently notified DPDP Rules 2025.
Key Financial Metrics
Earnings per share for Q3FY26 stood at ₹(0.01) compared to ₹0.04 in Q3FY25, while the nine-month EPS was ₹0.18 versus ₹0.29 in the previous year. The company's paid-up equity share capital remained stable at ₹512.48 lakhs with a face value of ₹10.00 per share.
Regulatory Compliance
The financial results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on February 14, 2026. The results underwent limited review by statutory auditors DPV & Associates, Chartered Accountants, who provided an unqualified review report. The company operates primarily in the single business segment of steel tube manufacturing with sales substantially in the domestic market.
Historical Stock Returns for Tamilnadu Steel Tubes
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -100.00% | -100.00% | -100.00% | -100.00% | -100.00% | -100.00% |
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