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Revenue
₹1,070 Cr
verified against source
Revenue YoY
40.6%
reported change
EBITDA
₹42 Cr
latest reported figure
Source
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record provenance
Actual signal trajectory
Where this quarter sits.
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What the record says.
Hi-Tech Pipes reported a strong Q3 FY26 with revenue surging 40% YoY to ₹1,070 crore and sales volume hitting a record 1.36 lakh tons (+10% YoY). However, EBITDA margin contracted 130 bps to 3.93% due to a sharp correction in hot-rolled coil prices from cheap imports, which compressed spreads. PAT fell 9% YoY to ₹17 crore. Management highlighted that the government's 12% safeguard duty imposed on December 30, 2025, has stabilized steel prices and reversed the margin pressure. New capacities at Sanand (1 lakh tons) and Jammu (80,000 tons) have commenced production, with Hindrapur expected soon, taking total capacity to 1 million tons. The company targets 25% volume growth annually and aims to increase value-added product mix from 37% to 50% over time. Risks include potential demand slowdown if infrastructure spending disappoints and competitive intensity from industry capacity additions.
Colored figures show movement against the previous available record.
Guidance to track
- Management targets 25% year-on-year volume growth, with FY26 sales volume guidance of 5.5 lakh tons (plus/minus 5-10%).
- Current value-added product mix is 37%; management expects it to increase to 42-43% by end of FY26 and 50% in the coming years.
- Management expects EBITDA per ton to stabilize in the range of ₹4,000-4,500, with Q4 FY26 being substantially better than Q3.
- Company plans to add another 1 million tons of capacity, with half a million tons expected by FY27-28. Total capex of ₹500-600 crore.
Risks flagged
- Sharp correction in hot-rolled coil prices due to cheap imports impacted spreads and profitability in Q3. Although safeguard duty has been imposed, any reversal or further volatility could hurt margins.
- An analyst raised concern that peers are also ramping up capacity, which could create excess capacity and make volume growth difficult. Management expressed confidence but acknowledged the risk.
- Demand is heavily reliant on government infrastructure projects and private sector investments. Any slowdown in spending could impact order inflows and volume growth.
- The company is undertaking significant capex to double capacity. Delays in commissioning or cost overruns could strain finances and delay expected benefits.
Key quotes
- The third quarter of FY26 marked a significant milestone for the company as we delivered our highest ever quarterly performance across key operational matrix.
- The decline in profitability was primarily attributable to a sharp correction in hot-rolled coil prices driven by an influx of cheaper imports, which exerted pressure on spreads across the industry.
- We are looking at between FY28 and FY29 for the additional 1 million tons which will take us to 2 million tons.
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