Vibhor Steel Tubes vs JG Chemicals Q3 FY26

Vibhor Steel Tubes reported Q3 FY26 revenue of ₹301.1 crore, up 21% YoY, driven by the ramp-up of the Jajpur (Odisha) plant which reached 21% capacity utilization in December. The company's legacy Maharashtra and Telangana plants continue to operate at 70-72% capacity. Management highlighted that the metal crash barrier division is running at full capacity (1,000 tons/month at each plant), prompting expansion with new machines and a second galvanizing line in Jajpur. New products like transmission line towers, monopoles, and poles are gaining traction, with EBITDA margins expected to be higher (5-10%) than pipes (3.5-3.8%). Capex of ~₹10 crore is planned for FY26. Key risk: high dependence on Jindal (80% of revenue) and execution delays in certification for new products.

Guidance read

Jajpur plant capacity utilization to reach 30-40% in FY27: Management expects the Jajpur plant to achieve 30-40% capacity utilization in the next fiscal year, up from 21% in December. Capex of ~₹10 crore in FY26: The company plans to invest approximately ₹10 crore in FY26 for new machines and galvanizing lines. New products to contribute 20% of revenue: Management expects non-pipe products (crash barrier, poles, towers) to account for 20% of revenue in the near term.

Risk read

Key risks include High customer concentration (Jindal) — Approximately 80% of revenue comes from Jindal, posing a risk if the relationship sours or demand drops.; Certification delays for new products — New products like transmission towers and poles require state-level certifications, which may delay revenue recognition.; Execution risk in capacity expansion — The company is adding new machines and galvanizing lines; any delay could impact growth targets..

Promise ledger

Scorecard data is being built as historical quarters are processed.

JG Chemicals delivered its highest-ever quarterly revenue of ₹249 crore (up 19% YoY), EBITDA of ₹26 crore, and PAT of ₹18 crore, driven by strong tire industry demand post-GST rate cuts, improved product mix, and higher capacity utilization. The company is executing a greenfield expansion in Gujarat (Phase I capex ~₹45-50 crore, revenue potential ~₹400 crore) expected to commission in Q2 FY27, alongside a brownfield expansion at Naidupa. Management targets doubling revenue every 3-4 years and improving EBITDA margins to 13-14% over 2-3 years via operating leverage and non-rubber mix shift to 70:30. A pilot recycled rubber project shows encouraging initial results. Key risk: zinc price volatility could impact working capital, though management expects inventory gains to flow in Q4.

Guidance read

Gujarat greenfield plant commissioning in H1 FY27: Phase I of the Gujarat plant (40,000 MTPA capacity) expected to commission in Q2 FY27, with full utilization in 2-2.5 years. Revenue target of ₹900-950 crore for FY26: Based on 9M run rate of ~₹700 crore, management expects FY26 revenue to exceed ₹900 crore, potentially reaching ₹950 crore. EBITDA margin expansion to 13-14% in 2-3 years: Core EBITDA margin of 10.5-11% expected to improve to 13-14% through operating leverage and higher specialty product mix. Non-rubber revenue mix target of 30% in 2-3 years: Management targets increasing non-rubber contribution from current 15-17% to 30% over the next 2-3 years.

Risk read

Key risks include Zinc price volatility impacting working capital — Rising zinc prices may increase working capital requirements; management believes internal cash flows are sufficient but risk remains if prices spike sharply.; Slower ramp-up of new Gujarat plant — Commissioning in Q2 FY27 with full utilization expected in 2-2.5 years; any delays or slower customer uptake could impact revenue growth.; Duty removal on zinc dross not yet implemented — Budget removed import duty on zinc scrap but not on zinc dross, a key raw material; management is lobbying for correction, but uncertainty remains.; Zinc sulfate demand sensitivity to farmer pricing — High zinc and sulfuric acid prices are causing farmers to defer purchases, leading to slower offtake; recovery depends on price stabilization..

Promise ledger

Scorecard data is being built as historical quarters are processed.