Vibhor Steel Tubes Reports 19% Revenue Growth in Q2 FY26, Launches Odisha Operations
Vibhor Steel Tubes Limited reported strong Q2 FY26 performance with 19% revenue growth and 60% PAT increase during its January 07, 2026 investor call. The company successfully commissioned its Odisha plant, achieving 2,000 tons dispatch in the first month while expanding into higher-margin products including crash barriers and transmission towers. With total installed capacity now at 377,000 MT across three facilities, the company targets a 75:25 product mix and benefits from favorable steel price increases and strong order books across all locations.
*this image is generated using AI for illustrative purposes only.
Vibhor Steel Tubes Limited conducted an investor update conference call on January 07, 2026, where Managing Director Vibhor Kaushik presented the company's strong operational and financial performance for Q2 FY26. The steel tube manufacturer reported significant growth across key metrics while successfully expanding its product portfolio and geographic presence.
Strong Financial Performance in Q2 FY26
The company delivered robust financial results for the quarter, demonstrating strong operational momentum across all business segments.
| Financial Metric | Performance | Growth Rate |
|---|---|---|
| Revenue Growth | Increased significantly | 19% YoY |
| PAT Growth | Strong improvement | 60% YoY |
| EBITDA Margin | Maintained steady levels | 3.83% in H1 FY26 vs 3.85% in FY25 |
| H1 FY26 Revenue Achievement | 51% of annual target | Strong momentum indicator |
The company's EBITDA margins remained healthy and consistent, reflecting stable operational efficiency despite the expansion activities. The achievement of 51% revenue in the first half signals sustained market demand and effective execution capabilities.
Odisha Plant Operations Commence Successfully
The newly commissioned Odisha plant in Sundargarh has exceeded initial expectations, becoming operational across multiple product lines. Located strategically between Sundargarh and Jharsuguda, the facility provides access to abundant raw materials from nearby steel plants including Steel Authority of India, JSW, Tata, and JSP.
| Operational Milestone | Achievement |
|---|---|
| First Month Dispatch | 2,000 tons |
| Daily Dispatch Rate | 100-120 tons |
| Market Coverage | Northeast, Chhattisgarh, Odisha, West Bengal |
| Product Lines | Pipes, crash barriers, transmission towers, poles |
The Odisha facility enables the company to serve previously inaccessible markets including Vishakhapatnam, Vijayawada, Nagpur, Raipur, and potential expansion into Patna. The strategic location offers cost advantages through reduced raw material logistics costs.
Product Diversification Strategy Gains Momentum
Vibhor Steel Tubes is successfully transitioning from a traditional pipe manufacturer to a comprehensive infrastructure solutions provider. The company targets achieving a 75:25 product mix, with 75% pipes and 25% value-added products offering higher margins.
Value-Added Product Portfolio
Highway Guardrails (Crash Barriers):
- Galvanizing plant in Hyderabad running at full capacity
- Strong order flow emerging in Odisha operations
- Margins similar to galvanized pipes with 0.2% premium
- Serving entire South India market from Hyderabad facility
Transmission Line Towers:
- EBITDA margins 3-4% higher than traditional pipes
- State approvals obtained in Gujarat, Sikkim, and Meghalaya
- Power Grid Corporation inspection completed
- Significant market opportunity from solar plant connectivity requirements
Poles and Monopoles:
- Margins 2-3% higher than pipes for standard poles
- Monopole margins potentially 8-10% or higher
- 132 kVA prototype under development for testing
Enhanced Manufacturing Capacity and Utilization
With the Odisha plant operational, the company's total installed capacity has increased to 377,000 metric tons annually across three manufacturing locations.
| Manufacturing Unit | Capacity | Key Products | Market Coverage |
|---|---|---|---|
| Maharashtra (Nagothane) | 125,000 MT | Pipes, galvanized products | Maharashtra, Gujarat, MP |
| Telangana (Hyderabad) | 96,000 MT | Pipes, crash barriers | South India |
| Odisha (Sundargarh) | 156,000 MT | All product lines | Northeast, Eastern India |
The company maintains a warehouse facility in Hisar for northern market access, though current production is being absorbed locally due to strong regional demand.
Export Operations and Market Expansion
Vibhor Steel Tubes maintains steady export operations at 3-5% of total sales, primarily serving 11 countries in Europe and the UK. The company has been exporting pipes for over 20 years and is now exploring export opportunities for value-added products from the Odisha facility.
The export strategy focuses on capacity optimization, ensuring galvanizing units remain fully utilized even during domestic demand fluctuations. With increased capacity from Odisha, the company can better serve international inquiries while maintaining domestic market commitments.
Strong Order Book and Market Outlook
The company reported healthy order books across all locations, reflecting strong market demand and successful market penetration.
| Location | Order Book (Tons) | Product Mix |
|---|---|---|
| Odisha | 800 (pipes), 600+ (crash barriers) | Multiple products |
| Maharashtra | 2,600 | Primarily pipes |
| Telangana | 1,000+ (renewed orders) | Pipes and crash barriers |
Management highlighted that recent steel price increases of ₹3,000 per ton, driven by anti-dumping duties and safeguard measures against Chinese imports, have created favorable market conditions. The company's inventory position of over 25,000 tons is expected to benefit from these price improvements.
Strategic Partnerships and Market Position
Vibhor Steel Tubes maintains a strong partnership with Jindal Pipes for the pipe division, with the Odisha facility addressing the 20-year gap in Northeast market presence. The company operates through a dealer network model rather than direct tendering, focusing on building strong distribution channels across all product segments.
The management expressed confidence in achieving higher capacity utilization rates, particularly targeting 30% utilization at the Odisha facility by Q4 FY26, while maintaining full capacity utilization at the Maharashtra and Telangana plants.
Historical Stock Returns for Vibhor Steel Tubes
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.96% | -7.50% | +4.09% | -34.42% | -40.84% | -71.69% |
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