Hariom Pipe

Hariom Pipe Industries Limited reported robust financial performance for Q3 and 9M FY26. For the nine months ended December 31, 2025, sales volume reached approximately 2.07 lakh tons, marking a 21% year-on-year growth. Revenue from operations also grew 21% YoY to INR 1,159.7 crores, with EBITDA at INR 145.5 crores and an EBITDA margin of 12.55%. For Q3 FY26, revenue stood at INR 362.9 crores, a 21% increase from INR 299.9 crores in Q3 last year, with EBITDA at INR 45.2 crores and a margin of 12.47%. Profit after tax for Q3 was INR 11.6 crores.

The company demonstrated steady execution and operational consistency despite market fluctuations. A continued focus on value-added products, disciplined working capital management, and stable plant operations contributed to consistent margins and profitability. Value-added products continue to be a significant contributor, accounting for 96% to 97% of total revenue. The integrated steel plant in Telangana has achieved near-optimal utilization, and overall plant performance across units remains stable and efficient.

Hariom Power and Energy, the company's renewable energy subsidiary, is making smooth progress on its 60 megawatt solar project. Land development work is on schedule, and a significant portion of the required land has been secured, including government land, which helps optimize project costs. The company expects 35 megawatt capacity to commence operations by April 2026, with the balance capacity becoming operational by the end of August 2026.

Hariom Pipe incorporated a new subsidiary, Metal Mart Private Limited, in which it holds 70%. This subsidiary is intended for trading metal and steel-allied products that Hariom does not currently manufacture, and to supply OEMs. The strategic rationale includes testing new markets, particularly in Western and Northern India where Hariom's presence is negligible, and gaining insights for future expansion. While trading margins are lower and may initially dilute consolidated margins, the subsidiary aims to provide transparency and market intelligence.

Management expressed confidence in achieving its volume growth targets, expecting to be 'very near' the 30% guidance for the current fiscal year. Q4 FY26 sales volume is projected to be between 90,000 to 95,000 tons. For the next fiscal year (FY27), the company anticipates returning to around 30% growth parameters. Demand visibility remains healthy, particularly in Southern India (Karnataka, Kerala, Andhra Pradesh), and the company is well-placed in the market, dismissing concerns about oversupply in the pipe segment.

EBITDA per ton remained healthy at INR 6,613 in Q3 and INR 7,039 for 9M FY26, with management guiding for a steady-state range of INR 7,000-8,000. While PAT growth lagged revenue/EBITDA growth in Q3, primarily due to depreciation and finance costs (including EIR adjustment on lease liabilities), the company expects its PAT rate to stabilize around 5% for the next two years, followed by substantial growth. The average finance cost for working capital is approximately 7.9%.

The planned steel plant in Gadchiroli, Maharashtra, is progressing slowly, with land allocation from the government still pending. Management expects to secure the land by the end of FY26, but significant movement on the project, including environmental clearances, is anticipated to take 1.5 to 2 years thereafter. The company continues to focus on maximizing production at its existing integrated steel plant and exploring opportunities for value-added products and further acquisitions.