Earnings calls / SAMBHV

Sambhv Steel Tubes Ltd. Q1 FY27 Earnings Call Summary

Sambhv Q1 FY27 revenue was ₹7,322 Mn, +31% YoY, operating EBITDA margin flat at 13.00%, PAT ex-exceptionals ₹566 Mn, +69% YoY. The driver was highest-ever value-added sales volume (structural 56,617 MT) and better realizations; other income lifted PBT margin to 10.50% from 8.06% YoY. Management guides a 150,000 MTPA brownfield structural DFT expansion with ₹500 Mn capex, stainless CR coil capacity doubled to 116,000 MTPA, and a GP coastal belt push. Risk: net debt/EBITDA rose to 1.00x from 0.78x FY26 end due to capex, working capital cycle extended to 21 days from 17, and GP pipe utilization is only 56.7%.

Revenue
Margin
Demand
Guidance
Tone

Event Participants

Executives

7 Anu Garg, Bhavesh Khetan, Bikash Agrawal, Brijlal Goyal, Niraj Shrivastava, Saurabh Patil, Suresh Kumar Goyal, Vikas Kumar Goyal

Analysts

0 Transcript incomplete - Q&A section not available for summary. This is an investor presentation document, not an earnings call transcript with analyst interaction.

Financials & KPIs

Metric Reported Commentary
Net Revenue from Operations ₹7,322 Mn +31% YoY, +7% QoQ; driven by highest-ever sales volume of value-added products and better realizations
Total Expenditure ₹6,370 Mn +31% YoY, +7% QoQ; in line with revenue growth
Operating EBITDA ₹952 Mn +31% YoY, +3% QoQ; margin stable at 13.00% vs 13.02% YoY
Operating EBITDA Margin 13.00% Flat YoY (-2 bps), -46 bps QoQ; maintained despite volume growth
EBIT (Incl. Other Income) ₹876 Mn +42% YoY, +4% QoQ; other income contribution increased
PBT (Excl. Exceptional) ₹769 Mn +71% YoY, +4% QoQ; margin expanded to 10.50% from 8.06% YoY
PAT (Excl. Exceptional) ₹566 Mn +69% YoY, +1% QoQ; margin improved to 7.73% from 5.98% YoY
Reported EPS ₹1.92 +38% YoY, +2% QoQ; share count increased post FY26 equity raise
Total EBITDA ₹1,001 Mn Includes other income; +38% YoY
Op. EBITDA/Ton (Ex. Sponge Iron) ₹10,002 Per-ton profitability on finished products
Cash Flow from Operations ₹922 Mn Strong conversion; 97% of Op. EBITDA
Net Debt / Op. EBITDA 1.00x As on Jun'26 annualized; improved from 0.78x FY26 end due to capex deployment
ROCE 21.92% Annualized as on Jun'26; up from 15.97% FY26
Working Capital Cycle 21 Days As on Jun'26; improved from 17 days FY26 end
Total Production Volume 334,439 MT Intermediate: 183,866 MT; Structural: 55,724 MT; Stainless: 42,424 MT; GP: 52,425 MT
Total Sales Volume 107,771 MT Structural: 56,617 MT; GP: 29,814 MT; Stainless: 14,760 MT; Intermediate: 6,580 MT
Finished Goods Capacity Utilization (FY26) ERW/GI: 65.4%, SS CR: 87.0%, GP Coils: 74.5%, GP Pipes: 56.7% SS CR and GP Coils running at high utilization; ERW/GI and GP Pipes have headroom

Geographic & Segment Commentary

Structural Pipes & Tubes (ERW Black/GI/CRFH): Highest-ever sales volume of 56,617 MT in Q1FY27. Capacity 350,000 MTPA with 65.4% utilization in FY26. Brownfield expansion of 150,000 MTPA via DFT route underway (₹500 Mn capex). Strong demand from infrastructure, construction, and OEM segments.

Stainless Steel (Slabs/HR/CR Coils): Sales volume 14,760 MT in Q1FY27. CR coil capacity doubled to 116,000 MTPA (CTO granted). HRAP/CR coils production at 42,424 MT. 87% capacity utilization in FY26. 18 new MoUs under "Sambhv" co-branding (total 28 partners) driving pipe conversion demand.

Pre-Galvanized Coils & Pipes (GP Coils/Pipes): Sales volume 29,814 MT in Q1FY27. GP coil capacity 116,000 MTPA (74.5% utilization), GP pipe capacity 100,000 MTPA (56.7% utilization). Targeting coastal belt expansion (Kerala, Tamil Nadu, Andhra, Goa, Maharashtra

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