Analysis: Hariom Pipe Industries Limited

NSE:HARIOMPIPE Steel - Tubes/Pipes Market cap: ₹1.1K cr

Growth thesis

Hariom Pipe Industries is a steel tubes/pipe manufacturer with 98% revenue from value-added products. Growth hinges on 20-25% volume expansion in FY27 driven by higher capacity utilization (currently above 60%) and B2B sales rising to 21% of revenue. The 60 MW solar project (35 MW operational by April 2026) will reduce power costs by 62% (from INR7.5 to INR2.96/unit), adding ~200 bps to EBITDA margins. Backward integration expansion from 40% to 80% (pending EC approval) and Metal Mart’s metals trading entry will diversify revenue streams. Margins remain stable at 12.5-12.6% through disciplined cost control, with CapEx focused on solar infrastructure (INR241 crore total). Key execution risk: Tamil Nadu plant restart delays (2-3 working days pending approval) could temporarily disrupt southern supply chains.

Why is Hariom Pipe Industries Limited stock rising?

30% volume growth guidance for FY27, subject to market conditions and without compromising profitability
Backward integration to increase from ~40% to ~80% upon receiving environment clearance from Government of India
60 MW AC solar power plant progressing in phases; 35 MW expected to commence by April 2026, balance by August 2026
Sustainable EBITDA margin target of ~12.5% driven by value-added products and cost discipline
Subsidiary Metal Mart Private Limited to trade non-manufactured steel products, test northern/western markets, and inform future capacity expansion

Research report

companyname: Hariom Pipe Industries Limited ticker: HARIOMPIPE sector: Steel / Pipes and Tubes Hariom Pipe Industries Limited is a vertically integrated steel manufacturer with nearly two decades of experience. It operates four manufacturing units across Telangana, Andhra Pradesh, and Tamil Nadu with a total installed capacity of 7,01,232 MTPA. The company produces a diverse range of value-added iron and steel products including mild steel (MS) pipes, galvanized pipes and coils, cold rolled coi...

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Catalysts

capex, margin expansion, new product segment, geographic expansion

Growth guidance

FY27 volume growth guided at 350,000-360,000 tons (20-25% y-o-y) driven by capacity utilization and value-added product mix; blended EBITDA per tonne maintained at INR7,200-7,300 through product mix optimization

Guidance downgraded

Management consistency

mixed

RS rating: 24 Stage: Stage 3

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