Hi-Tech Pipes Limited has delivered exceptional performance in Q3 FY26, achieving record sales volume that underscores the company's strong market position and operational efficiency. The steel sector company has demonstrated consistent growth across multiple measurement periods, reflecting robust demand dynamics in key end-user industries.

Record Sales Volume Achievement

The company reported sales volume of 1,36,067 MT in Q3 FY26, marking a new milestone in its operational performance. This achievement represents the highest sales volume recorded by the company, demonstrating its enhanced production capabilities and market reach.

Growth Trajectory Analysis

The company's sales volume growth of 10% year-over-year indicates sustained momentum compared to the corresponding quarter in the previous fiscal year. Additionally, the 9% quarter-over-quarter increase demonstrates sequential improvement and consistent operational performance. This dual-period growth pattern reflects the company's ability to maintain upward trajectory across different timeframes.

Market Demand Drivers

The strong performance has been fueled by increased demand from infrastructure, construction, and engineering segments. These key end-user industries have provided substantial support for the company's sales volume expansion, indicating favorable market conditions and the company's effective positioning within these growing segments. The growth is supported by the company's diversified product portfolio, expanded capacities, and strong customer relationships.

Management Commentary

Mr. Ajay Kumar Bansal, Managing Director of Hi-Tech Pipes Limited, expressed satisfaction with the performance, stating that the company delivered healthy sales volume growth despite a challenging macroeconomic environment. He emphasized the company's focus on operational efficiency, product diversification, and timely execution of orders as key factors strengthening their market position. The management remains optimistic about demand prospects in coming quarters, supported by ongoing infrastructure development, housing activity, and government initiatives.

Company Profile and Capacity

Hi-Tech Pipes Limited operates as one of India's leading steel processing companies with nearly four decades of experience. The company maintains six state-of-the-art integrated manufacturing facilities located at Sikandrabad, Sanand, Hindupur, and Khopoli, with an installed capacity of 8,50,000 MTPA on a consolidated basis. The company is progressing towards reaching 1 million tonnes capacity and maintains direct marketing presence in over 20 states with more than 500 dealers and distributors across India.

Hi-Tech Pipes Limited (ISIN: INE106T01025) has reported a strong performance in the second quarter of fiscal year 2026, with significant revenue growth and strategic capacity expansions underway. The company's latest financial results and operational updates highlight its resilience in a challenging market environment and its commitment to long-term growth.

Financial Highlights

Hi-Tech Pipes demonstrated robust financial performance in Q2FY26:

The company's revenue growth was primarily driven by an improved product mix and higher contribution from value-added products. Despite challenging external factors such as an extended monsoon and declining steel prices, Hi-Tech Pipes maintained a healthy capacity utilization of around 60%.

Operational Performance

For the first half of FY26, Hi-Tech Pipes reported:

• Sales volume increase of 1.66% to 2.5 lakh tons
• Revenue growth of 4.91% to ₹1,650 crores
• EBITDA of ₹85.36 crores
• PAT of ₹41.17 crores, up from ₹36.16 crores in H1FY25

The company maintained a strong balance sheet with a debt-to-equity ratio of 0.21 and a current ratio of 2.09x, demonstrating sound liquidity and financial discipline.

Capacity Expansion and Strategic Initiatives

Hi-Tech Pipes is actively pursuing capacity expansion to support future growth:

1. Existing Facilities: A 3 lakh ton capacity addition is in the advanced stage of commissioning, with trial runs already commenced. Commercial production is expected to begin in Q3FY26.

2. Greenfield Project: The company has laid the foundation stone for a new manufacturing facility in Hindupur, Andhra Pradesh. This 1.5 lakh ton capacity plant will focus on value-added coated products for infrastructure and industrial sectors, with completion targeted for Q1FY28.

Product and Market Developments

• Launched new nationwide television commercials and marketing campaigns to enhance brand visibility
• Introduced new SKUs, including jumbo steel sections up to 300 series, to cater to larger infrastructure projects
• Expanded presence in international markets, strengthening the company's global footprint
• Continued growth in the solar segment, establishing Hi-Tech Pipes as a reliable supply chain partner in the renewable energy space

Outlook

Hi-Tech Pipes remains optimistic about future growth, citing strong underlying demand from infrastructure, construction, and renewable energy sectors. The company's near-term focus includes:

• Improving capacity utilization to 70%
• Enhancing the value-added product mix
• Strengthening domestic and export markets
• Progressing towards its 2 million ton capacity milestone

With new capacities coming online and sustained brand momentum, Hi-Tech Pipes expects improved operating leverage, enhanced margins, and stronger return ratios in the coming periods.

Mr. Anish Bansal, Whole-Time Director of Hi-Tech Pipes Limited, commented on the results, stating, "This performance has been achieved in a very challenging external environment, which was dominated by extended monsoon and declining steel prices. This proves the company's resilience and strength to deliver consistent performance despite adverse market conditions."

As Hi-Tech Pipes continues to expand its capacity and focus on value-added products, investors will be watching closely to see how these strategic initiatives translate into sustained growth and profitability in the coming quarters.