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    BUILDPRO

    BUILDPRO
    Consumer Services·12 Feb 2026
    Management Summary

    Shankara Buildpro Limited reported strong Q3 FY26 results, driven by robust steel sales volume growth of 37% YoY and a 29% increase in overall revenue to ₹1666 crores. Profitability also improved with EBITDA margin reaching 3.30%. However, the non-steel segment experienced a 5% YoY decline due to various market and regulatory challenges, and Q3 PAT was impacted by one-time demerger and labor code costs. The company remains optimistic about achieving its FY26 steel volume target and improving non-steel performance in the coming quarters.

    Highlights

    5
    • Steel sales volume grew 37% YoY in Q3 FY26 to 2.61 lakh tonnes, driven by aggressive penetration in western geographies (Maharashtra, Gujarat, MP).

    • Overall top line (revenue) for Q3 FY26 was ₹1666 crores, reflecting a 29% YoY growth.

    • Profit After Tax (PAT) for 9M FY26 stood at ₹86.5 crores, registering a strong 77% growth over the same period last year.

    • EBITDA margin for Q3 FY26 improved to 3.30% from 2.75% YoY, and for 9M FY26 to 3.28% from 2.8% YoY.

    • ROCE for 9M FY26 stood at 37%, and working capital remains efficiently managed under 30 days.

    Concerns

    4
    • Non-steel sales declined 5% YoY in Q3 FY26 to ₹146 crores, facing headwinds from weak export markets, raw material volatility, and government policy changes.

    • PAT for Q3 FY26 fell sequentially from ₹29 crores to ₹25 crores, impacted by a ₹2.61 crore additional gratuity provision for a new labor code and ₹1.5 crore demerger costs.

    • Management noted some resistance to the significant steel price increases observed towards the end of the quarter and into January.

    • Construction activity, particularly in non-steel, was slowed by elongated monsoons and state-level regulatory interventions in Southern States like Karnataka and Telangana.

    What Changed1

    vs Q4 FY26

    Guidance items16 → 6 (-10)
    Key financials

    Metrics

    8

    Periods

    3

    Headline

    1
    • Working Capital
      30 days

    Q3 FY26

    4
    • Overall Revenue
      ₹1,666 Cr
      YoY+29.0%
    • EBITDA
      ₹55 Cr
    • EBITDA Margin
      3.3%
      YoY+20%
    • PAT
      ₹25 Cr
      QoQ-13.8%

    9M FY26

    3
    • Overall Revenue
      ₹4,829 Cr
      YoY+30%
    • PAT
      ₹86.5 Cr
      YoY+77%
    • ROCE
      37%

    Segment breakdown

    • Steel (Q3 FY26)₹1,520 Cr23.4%
    • Non-Steel (Q3 FY26)₹146 Cr2.2%
    • Steel (9M FY26)₹4,384 Cr67.5%
    • Non-Steel (9M FY26)₹445 Cr6.9%
    Donut· Share of Sales Revenue

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Debt

    Debt disclosed

    Cost 7.5%

    Guidance & targets

    6
    CategoryTargetPriority
    Volume
    Steel Volume
    1 million tonnes
    High
    Volume
    Overall Volume Growth
    20%
    High
    Margin
    EBITDA Margin
    3.5%
    High
    Margin
    EBITDA Margin
    4%
    High
    Revenue Mix
    Non-Steel Revenue Contribution
    20%
    High
    Revenue
    Top Line
    ₹10,000 crores
    High

    Non-Steel Segment Recovery

    From Q2 FY27
    Current5% YoY decline in Q3 FY26
    TargetGrowth/improvement

    Why it matters

    Essential for achieving the 20% non-steel revenue mix target by 2030 and overall growth, as management expects results from Q2 next financial year.

    I think things are looking better and we are looking to get back on that track from next year. We have already worked on what changes need to be done internally... And I think we will start seeing those results from the second quarter of the coming financial year.

    How to verify

    key_financials.segment_breakdown[name='Non-Steel (Q3 FY26)'].metrics[label='Sales Revenue']

    Risks & concerns

    3
    RiskSeverity

    Non-Steel Demand Weakness

    Tepid non-steel demand due to weak export markets, raw material price volatility, elongated monsoon, and adverse government policy changes in Southern States.Management acknowledged

    medium

    Steel Price Resistance

    Significant steel price increases towards the end of Q3 and into Q4 are facing some resistance, which could impact demand.Management acknowledged

    medium

    Regulatory/Policy Delays (Non-Steel)

    State-level government interventions (e.g., e-khata, electricity connections) in Karnataka and Telangana have slowed construction activity and project completions, affecting non-steel demand.Management acknowledged

    medium

    Q&A highlights

    8

    “I think these three States really triggered a substantial volume growth. So I think if we look at broadly the numbers, I think around 50% is our growth in the volume in the western region. I think that is what has really sustained our superior growth overall, while it has remained around 20% in the southern region.”

    Explains the significant steel volume growth (37-38%) by highlighting successful geographical expansion into western states (Maharashtra, Gujarat, MP).

    asked by Viraj

    3 min read7 chapters

    Detailed Narrative

    01

    Q3 & 9M FY26 Performance Overview

    Shankara Buildpro Limited reported a robust Q3 FY26 with an overall top line of ₹1666 crores, marking a 29% year-on-year growth. For the nine months of FY26, the top line reached ₹4829 crores, growing 30% YoY. EBITDA for Q3 stood at ₹55 crores with a margin of 3.30%, improving from 2.75% in the prior year. Profit After Tax (PAT) for 9M FY26 was ₹86.5 crores, reflecting a strong 77% growth over the same period last year, with ROCE at 37% and working capital under 30 days.

    02

    Steel Segment Outperformance

    The steel segment demonstrated strong performance, with sales volume reaching 2.61 lakh tonnes in Q3 FY26, a 37% YoY increase. Steel sales revenue for the quarter was ₹1520 crores, growing 34% YoY. For 9M FY26, steel sales volume was 7.27 lakh tonnes (up 38% YoY) and revenue was ₹4384 crores (up 34% YoY). This growth was primarily driven by aggressive penetration and market share gains in western geographies like Maharashtra, Gujarat, and Madhya Pradesh, which contributed approximately 50% of the volume growth.

    03

    Non-Steel Segment Challenges & Outlook

    In contrast to steel, the non-steel segment faced headwinds, with sales declining 5% YoY to ₹146 crores in Q3 FY26. Management attributed this to several factors including weak export markets, volatility in raw material pricing, and elongated monsoons. Additionally, a post-COVID slowdown in new project launches and state-level government policy changes in Southern States like Karnataka and Telangana have delayed construction activity. The company expects the demand environment to improve, with results from internal changes anticipated from Q2 FY27.

    04

    Profitability & Margin Analysis

    EBITDA margins for Q3 FY26 came in at 3.30% (₹55 crores) and for 9M FY26 at 3.28% (₹158 crores), showing an improvement over the previous year. However, Q3 PAT sequentially fell from ₹29 crores to ₹25 crores. This decline was primarily due to one-time📎 impacts: a ₹2.61 crore additional gratuity provision related to a new labor code and a ₹1.5 crore cost booked for the demerger process.

    05

    Inventory Management & Price Volatility

    Despite significant steel price fluctuations, including a downward trend for 8-9 months followed by increases in December and January, the company managed its inventory effectively. While Q2 FY26 saw an inventory loss of approximately ₹12 crores, Q3 FY26 had no significant inventory loss. This was achieved through careful planning, effective purchasing strategies, and securing price guarantees from suppliers, allowing the company to hedge against price volatility.

    06

    Strategic Growth Targets & Future Outlook

    Shankara Buildpro aims to achieve 1 million tonnes in steel volume for FY26. Looking ahead, the company targets an overall volume growth of 20% for FY27. Long-term aspirations include a top line of ₹10,000 crores and a 20% non-steel revenue contribution by 2030. Profitability targets include an EBITDA margin of 3.5% for FY27, with an aspiration to reach 4% in FY28, focusing on better margin mix in both steel and non-steel products.

    07

    Capital Structure & Working Capital Efficiency

    As of December, the company reported acceptances of approximately ₹450 crores and borrowings of around ₹50 crores, totaling ₹500 crores. The cost of debt on these acceptances is competitive, ranging from 7.5% to 8%. The company maintains efficient working capital management, keeping it under 30 days overall, with non-steel requiring about 48 days due to higher inventory for display, and steel at 27 days.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.