Hariom Pipe Industries Limited (HARIOMPIPE) Q3 FY2026 Earnings Call Transcript & Summary

Ladies and gentlemen, on behalf of Kaptify Consulting Investor Relations team, I welcome you all to the Q3 and 9 Months FY '26 Post Earnings Conference Call of Harm Pipe Industries Limited. Today on the call from the management team, we have with us Mr. Rupesh Kumar Gupta, Managing Director; Mr. Ansh Golas, Whole-Time Director; Mr. Amitabha Bhattacharya, Chief Financial Officer; and Ms. Rekha Singh, Company Secretary. As a disclaimer, I would like to inform you that this call may contain forward-looking statements, which may involve risks and uncertainties. Also, a reminder that this call is being recorded. I would now request the management to brief us about the business and performance highlights for the period ended December 2025, the growth perspectives and vision for the coming year, post which we will open the floor for Q&A. Over to the management team.

Good afternoon, everyone. This is Rupesh Kumar Gupta from Hariom Pipe Industries Limited. Thank you for joining us today to discuss the performance of Hariom Pipe Industries Limited for the third quarter and 9 months ended December 31, 2025. During the period, the company continued to demonstrate steady execution and operational consistency despite fluctuations in steel prices and the dynamic market environment. Our continued focus on value-added products, disciplined working capital management and stable plant operations helped us maintain consistent margins and profitability. For the 9 months ended December '25, the company recorded sales volume of approximately 2.07 lakh tonnes, reflecting a 21% year-on-year growth. Revenue from operations stood at INR 159.7 crores, also growing 21% year-on-year. EBITDA came at INR 145.5 crores with EBITDA margin at 12.55%. EBITDA per tonne remained healthy at around INR 7,039 per tonne, supported by our strong value-added product mix, which continues to contribute about 96% to 97% of total revenue. Profit before tax for the 9-month period stood at INR 62 crores, while profit after tax came at INR 45.6 crores, showing stable earnings despite price movements during the year. Overall profitability remains well aligned with our internal estimates. Coming to the third quarter, revenue from operations was INR 362.9 crores compared to INR 299.9 crores in Q3 last year. EBITDA for the quarter stood at INR 45.2 crores and margin at 12.47%. And EBITDA per tonne remained at a healthy level of INR 6,613. Before tax -- profit before tax was INR 15.6 crores and profit after tax stood at INR 11.6 crores. From an operational perspective, the Galvanized Pipes and Coils segment continues to be the primary contributor with both the Telangana and Tamil Nadu units performing steadily. The integrated steel plant in Telangana facility has now reached near optimal utilization. And overall plant performance across units remained stable and efficient. Looking ahead, business conditions remain stable, and operations across all units continue to perform steadily. Demand visibility remains healthy. And our focus on value-added products, disciplined execution and operational stability continues to support overall performance. Based on the performance achieved so far and current business momentum, we remain confident on closing the financial year on a good note as Q4 is always marked as good quarter for steel industry. I would now like to brief update you on our renewable energy subsidiary, Hariom Power and Energy. The 60-megawatt solar project is progressing smoothly. The land development work across locations is moving as per schedule. A significant portion of land required for the project has been secured, including government land, which helps optimize project cost. We expect 31-megawatt capacity to commence operations by April '26 and balance capacity by end of August '26. To conclude, the company continues to maintain stable performance, consistent margins and disciplined execution. With improving demand visibility, strong product mix and ongoing strategic initiatives, we are confident of delivering steady growth and finishing the financial year on a good note. Thank you all for your continued support and participation. Thank you.

Amitabha, would you like to add anything on the financial front? Or shall we proceed with Q&A?

I think let's go with the presentation [ one ] so that people have a very clear clarity on that.

Sir, we can go with the question.

[Operator Instructions] We will take the first question from Aryan Bhatia.

My first question is regarding the drop in EBITDA per tonne. So can you specify the reason? Is it due to the lower steel prices? And if it is, I just wanted to know after the antidumping duty that government has imposed, what is the steady-state EBITDA per tonne we're expecting?

[Foreign Language] EBITDA per tonne [Foreign Language], that is recently, which has been completed, [Foreign Language] related to your raw material pricing, including coal, iron ore and [Foreign Language], which is not a major one. [Foreign Language].

Okay. So from INR 7,000 to INR 8,000. Got it. So, my second question is regarding, again, the antidumping duty. If I remember correctly, we used to import some of the HR coils due to the lower prices. But now that government has imported -- sorry, imposed an antidumping duty, so do you see some impact on our EBITDA per ton due to this only? Because we were previously importing some HR coils, which were cheaper than in the current domestic...

[Foreign Language]

Okay. Got it. And sir, my question is on our -- we were planning a steel plant in Gadchiroli. So any -- what is the outlook for that?

So, the MoU was signed by Maharashtra government for Gadchiroli project, which is under process. So, the documentation part is going on. We are not aggressively having anything in hand now. Government has to allot us the land, which is with MSEDCL. And after that only, we will be getting some clarity after land allocation. So we are waiting for things to happen. We think, by end of this year, we will be getting the land in hand. And moving ahead, I think, 1.5 years, 2 years [Foreign Language]. We'll have to [ the leasing ] and other processes will be there. After that only, things will be moving ahead.

Got it. Got it. And sir, my last question is regarding our 30% guidance -- volume guidance. So are we still intact? And what is our expansion plans for the next...

Yes. So this quarter, we have [indiscernible] 21% of our plants. And as you know, this fourth quarter will always be a beneficial one. And moving ahead, we are expecting new growth in our value-added chain also. And on the similar guidelines, we are working. And I think we'll be very near to the guidelines.

Okay. Okay. And sir, my last question is, like, do you think there is enough demand? Because if I look at all the players, they are expanding their capacity quite rapidly. So -- but if I look at the growth, the growth has not been that far. So do you think there is a case of oversupply regarding the ERW pipes or black pipes? Because if I look...

Yes. So Aryan, basically [Technical Issues] -- the policies [indiscernible] the government and other things, [Foreign Language] as geopolitical issues are also a part of our commodity products and the pricing and other things. So basing on those lines, in Indian and especially in southern part of India like Hyderabad, Telangana and Andhra and Karnataka, we find very good growth, and we expect things should move out well. So [Foreign Language]. It is all about between some [Foreign Language]. Demand-wise, we're extremely good [Foreign Language] in the market.

We'll take the next question from Vijay Chauhan.

So my first question is on realization side. So if we look at the current quarter realization, somewhere it's around INR 53,000. So how do we see it shaping up into the quarter 4 and FY '27?

So quarter 4 will always be a beneficial one, and the average pricing, which should minimum move around INR 55,000, what is our expect, between INR 54,500 to INR 55,000, which is our expectation. And we feel that the demand [ and deciding ] the prices is already being accepted by the market or the market [Foreign Language]. So we expect a good hike in the price also.

Okay. So around INR 54,000, INR 55,000 is what we are expecting for quarter 4.

It's an average pricing.

Okay. And on the volume side, so the guidance on that 30% volume growth, so if I recollect, we had done, in quarter 4 previous year, somewhere around 74,000 in quarter 4. So are we expecting the same trajectory go ahead, maybe 95,000 or 1 lakh, as per your visibility? Because already -- 1 month is already over. So would you like to put some light so that we get some clarity on that part?

Yes, 90,000, plus we are -- it's a thing -- we can easily put on our things. As you know, 21% has already been touched upon. And moving ahead, it will automatically [ blow on ]. So I think 95,000 [Foreign Language] 90,000 to 95,000.

Okay. So it will be around 30% -- 27%, 28% kind of growth that you are targeting on the quarter 4. Which are the segments or sectors you are seeing much demand and in this quarter and also for the long term based on your assessment on the budget?

So budget has not given much of support to [indiscernible]. So it was normal only. Apart from that [Foreign Language].

We'll take the next question from Smith Gala.

[Foreign Language]

[Foreign Language] that is only part of the business. Other part is basically [Foreign Language] new development and visibility in the market will be there.

Add on to that, in our earlier presentation also, we have clearly mentioned that our B2B sales is 15%. Now, it has up to 21% till 9 months. So slowly and gradually. We are going into that B2B with corporate clients and OEM manufacturers. So we're supplying to them. In that way also, whatever our target of demand that we can match.

[Foreign Language]

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[Foreign Language]

[Foreign Language] It is not, every year, we will jump on with some good opportunities and all. It is all about evaluation of the opportunity [Foreign Language] we're moving very aggressively on it. [Foreign Language]

[Foreign Language]

[Foreign Language]

We'll take the next question from Kashish Gandotra.

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language] which is pretty good in present financial market. [Foreign Language]

[Foreign Language] Will that be the right judgement?

[ Nearly ].

Second question is regarding -- like you mentioned [Foreign Language] first quarter, at least, it will be near about breakeven?

Nearby breakeven [Foreign Language] it is nothing but the internal cash accrual [Foreign Language].

[Foreign Language] If you can just give a number, that would be helpful.

It is quite difficult. [Foreign Language]

We'll take the next question from Praneeth Reddy. We'll move on to Sagar Shah.

Congratulation, sir, [Foreign Language] on consol basis.

[Foreign Language] for any further CapEx. So that is why we are creating a platform where the trading margin in very less. And if I'm creating a subsidiary company, then this put on our -- directly to our balance sheet, and -- which is impact to the -- very difficulty for us to distinguish between the -- what are the trading sales and what are manufacturing sales. So, for Hariom, track record is [ 12.5% ] [Foreign Language]. And moreover, this company is actually focused on western and northern part of India [Foreign Language] without any confusion [Foreign Language].

[Foreign Language]

[Foreign Language] It all depends on the tie-ups with the OEMs and what are they demanding and what are we -- getting that produced and giving [ him ]. It is not fixed with any particular region or any particular product. [Foreign Language]

[Foreign Language]

[Foreign Language] Otherwise we'll not go inside it.

[Foreign Language] That is why we've created a separate subsidiary. Otherwise, [Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language] What is the utilization right now [Foreign Language]?

[Foreign Language]

[Foreign Language] around 3 lakh tonnes, galvanized pipes and coils?

[Foreign Language] to be precise, 77,230 metric tons, plus 51,000. [Foreign Language] 122,046 metric tons, 9 months.

So almost 40% utilization [Foreign Language], right, sir?

50% [Foreign Language]

[Foreign Language] So can we expect some sort of realization increase if we scale this kind of product more?

Yes, definitely. Realization [Foreign Language]

[Foreign Language]

[Foreign Language] Yes, you're right, absolutely right. Realization [Foreign Language]

[Foreign Language]

Absolutely. Correct.

We'll take the next question from Praneeth Reddy.

Given that our Anantapur sponge iron plant is around 300 to 400 kilometers away from existing pipe mills and pipes are very heavy to transport, would it make strategic sense over the long term to evaluate a small to midsized pipe mill near Anantapur? With the infrastructure and industrial development happening in Andhra, so such a unit could act as a feeder plant to some nearby markets more efficiently.

Yes. So, Praneeth, basically [Foreign Language] that is, only we are holding in sponge iron unit. And all the sponge iron which is manufactured is being transported to Hyderabad unit. So now, recently -- the public hearing results are coming out. And recently, 2 days back, we had a meeting also online, in which we'll be having -- the clarity will come for the [ ECE ]. And further moving, we can plan out the [ cleaning production ] and other things also. So moving ahead, we never know if at all the opportunity is there, the market conditions are there, we can go for additional capacities in Anantapur also because we are having the land as well and the government of Andhra is also cooperative in those terms, and we can move ahead in that plant also.

Because there is more industrial activity happening in the [Technical Issues]

Yes. And demands are also good in Andhra. Moving ahead, we see Andhra will be a very strong player in terms of consumption, and we can get the help from the government also.

Okay, sir. My second question is, do you see Hariom entering into branded play and -- which 1, 2 executions, if done well, could truly change the company's trajectory?

Sorry, I haven't got that.

Do you see Hariom entering into branded play?

Yes. I mean, the Hariom brand is well accepted in the market, and people are demanding that particular quality, what we are delivering. It's the process what we are driving on, on-time delivery, quality, rust-free material, [indiscernible] material, all these things -- and then, ISI grading and all, everything is being provided to the customers. So customers are very happy. And repeatedly -- you see, our repeated customers are not going anywhere, and we are adding on new customers.

And which -- 1, 2 executions in longer term, if done well as per you, would really change the company's trajectory?

So OEMs and the government projects what we will be supplying will also help us out in the profitability and the numbers.

Okay, sir. Right now, which state is giving the most revenue, sir -- revenue contribution?

Revenue from the state?

Yes. Like, state-wise bifurcation or something like that. Which state is giving more revenue...

Basically, our major revenue is coming from Karnataka, Kerala, and third position is Andhra Pradesh. So first one is Karnataka, second Kerala, and third is Andhra Pradesh.

Okay. Sir, do we have in DFT installed in our plants or...

DFT?

Yes, Direct Forming Technology.

That is -- in [indiscernible] there, but that is earlier version of DFT present version of technology.

Okay. Are we planning to upgrade anything? Or is it...

Not exactly DFT.

Okay. And what about -- any color-coated products, are we planning to add any?

Not now. We are not trying to add on any color-coated products at all. But value-added products, yes, we are doing excellently well. Galvanizing, we are doing good. And [ while ] -- galvanizing, also we are doing very good. And annealing things are also being packed out. CRFH coils, CR coils, all these things are in place basically. So we are not planning for...

We already have color-coated products, sir?

No, we don't have any color-coated products.

We'll take the follow-up question from Smith Gala.

[Foreign Language]

[Foreign Language] basically, it's a new team, which is really working very closely to that. It is all about opportunity and the safety of the amount which we have been giving. [Foreign Language] it is more about receiving the amounts also. [Foreign Language] it will initially start with a small volume only. And after a quarter time only, we'll come know what exactly with the numbers. The only incorporation because of bifurcation [Foreign Language].

[Foreign Language]

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[Operator Instructions] Since there are no further questions, would you like to give any closing comments?

[Foreign Language] Just a closing remark, I would like to reiterate that Hariom Pipe Industries continues to remain focused on stable growth, disciplined execution and long-term value creation. Despite market fluctuations, the company has maintained consistent operational performance, supported by strong value-added product mix and efficient utilization of capacity. Our strategic initiatives, including expansion in value-added segments and progress in renewable energy, continue to strengthen the company's long-term positioning. With steady demand visibility and improving operational stability, we remain confident of closing this financial year on a good note and continuing our growth journey in the coming periods. We sincerely thank all our investors, analysts, vendors, partners and employees for their continued trust and support. Thank you all.

Thank you, sir. We thank the management team and all the participants for joining on this call. This brings us to the end of this conference call. Thank you.