Hi-tech pipes Limited, one of India's leading manufacturers of steel tubes, hollow sections, and value-added steel products, has announced the commencement of commercial production at its Sikandrabad Unit-III facility in Uttar Pradesh. This milestone marks a significant achievement in the company's growth trajectory and strengthens its manufacturing presence across North and Central India.

Capacity Expansion Details

The commissioning of the Sikandrabad facility represents a major step forward in Hi-Tech Pipes' expansion strategy. The facility adds substantial manufacturing capacity while enhancing the company's operational flexibility and market reach.

With this new facility, Hi-Tech Pipes has effectively achieved a landmark milestone of 1 million tons of installed annual capacity, reflecting the company's consistent execution and disciplined capital allocation approach.

Strategic Positioning and Benefits

The Sikandrabad facility's strategic location enhances proximity to key consumption centers, delivering multiple operational advantages. The facility improves supply chain efficiency, reduces logistics costs, and enables faster response to customer requirements across infrastructure, construction, water distribution, fabrication, and industrial segments.

The plant is equipped with modern manufacturing technology and process efficiencies, enabling superior quality, scalability, and reliability. This strategic positioning is designed to support improved operating efficiencies, better realization, and stronger operating leverage, contributing to sustained improvement in EBITDA per ton.

Future Expansion Plans

Building on this milestone achievement, Hi-Tech Pipes is progressing toward the next phase of expansion with a clear roadmap to add another 1 million tons of capacity over the medium term. This expansion strategy aligns with the company's vision of building a robust, pan-India, and globally competitive manufacturing platform.

The company's expansion approach focuses on enhancing profitability and margin resilience while addressing evolving customer requirements and supporting long-term profitability metrics.

Market Outlook and Opportunities

The demand outlook for steel pipes and tubes remains strong and structurally positive, supported by several key factors:

• Sustained government-led infrastructure development
• Continued urbanization trends
• Renewable energy investments
• Increased private sector participation

On the global front, recent trade developments such as the US-India and EU-India trade pacts are expected to be structurally supportive for Indian steel product manufacturers, improving export competitiveness and access to international markets.

Management Commentary

Mr. Ajay Kumar Bansal, Chairman and Managing Director of Hi-Tech Pipes Limited, commented on the commissioning: "The commencement of commercial production at our Sikandarabad Greenfield facility is a significant step forward in our growth journey and reinforces our commitment to building a strong, regionally balanced manufacturing network. With this commissioning, we have reached the important milestone of 1 million ton of installed capacity, reflecting our disciplined execution and long-term strategic vision."

He further added: "Sikandarabad has been developed with modern technology and enhanced efficiencies to support our growing focus on value-added steel products and high-demand segments. As we move ahead, we are actively gearing up for the next phase of expansion, targeting an additional 1 million tons of capacity."

Hi-Tech Pipes Limited announced its unaudited financial results for the third quarter and nine months ended December 31, 2025, delivering record quarterly performance with strong revenue growth despite margin pressures. The Board of Directors approved the results in their meeting held on February 07, 2026.

Record Quarterly Performance Drives Growth

The company achieved its highest-ever quarterly performance with consolidated revenue from operations reaching ₹1,069.59 crore compared to ₹761.02 crore in the corresponding quarter of the previous year. This represents a substantial year-on-year increase of 41%, supported by strong volume growth and operational expansion. Total sales volumes increased by 10% to 1.36 lakh tonnes in Q3FY26 compared to 1.24 lakh tonnes in Q3FY25.

Nine-Month Performance Shows Consistent Growth

For the nine-month period ended December 31, 2025, Hi-Tech Pipes maintained steady growth momentum. Consolidated revenue from operations increased by 17% to ₹2,719.72 crore from ₹2,333.89 crore in the corresponding period last year. Total sales volumes grew by 4% to 3.85 lakh tonnes compared to 3.69 lakh tonnes in 9MFY25.

Margin Pressure Despite Volume Growth

While the company achieved record revenue and volume growth, profitability faced headwinds during the quarter. EBITDA per tonne decreased by 5% to ₹3,078 per MT in Q3FY26 compared to ₹3,238 per MT in Q3FY25. The decline in profitability was attributed to softer Hot Rolled Coil (HRC) prices, which impacted margins despite improved operational leverage.

Capacity Expansion and Strategic Developments

The company announced the commencement of commercial production at its Sanand Unit-2 Phase II and the Jammu (Kathua) facility, with the Sikandrabad facility expected to follow shortly. These expansions significantly enhance the company's scale and product mix, with installed capacity nearing 1 million tonnes. The Board also approved entering into a Non-Compete Agreement with Hi-Tech Flow Solutions Limited to clearly demarcate respective business domains.

Management Commentary and Outlook

Chairman and Managing Director Ajay Kumar Bansal commented on the performance, stating that the company delivered its highest-ever quarterly performance with revenues growing 41% year-on-year. He noted that while EBITDA improved modestly, profitability was impacted by softer HRC prices. The management remains focused on strengthening operating leverage and improving margins, with demand supported by infrastructure, renewable energy projects, and export opportunities positioning the company for sustained long-term growth.

Earnings Conference Call Audio Available

The company has made available the audio recording of its earnings conference call held on February 07, 2026 at 04:00 P.M. (IST) to discuss the Q3FY26 financial results. The audio link can be accessed on the company's website for investors and stakeholders seeking detailed insights into the quarterly performance and management commentary.