Hariom Pipe

Hariom Pipe Industries delivered robust financial results for Q4 and the full year FY26. Full year revenue from operations grew 23% year-on-year to INR 1,667 crores, with EBITDA increasing by 19% to INR 209 crores, maintaining a healthy margin of 12.56%. Profit After Tax (PAT) for the full year also saw a 23% rise to INR 76 crores. For Q4 FY26, revenues from operations surged 27% year-on-year to INR 507 crores, and PAT significantly improved by 75% year-on-year to INR 30 crores, demonstrating strong operational execution.

Management emphasized a conscious strategy shift towards profitable and cash-generating growth, rather than solely pursuing volume. This approach aimed at reducing working capital intensity, improving cash conversion, and strengthening the company's financial position. Despite competitive market conditions and input price volatility, the company maintained stable margins, with full year blended EBITDA per metric tonne at INR 7,258 and Q4 at INR 7,800, indicating a disciplined approach to business quality.

The subsidiary, Hariom Power & Energy Private Limited, is actively executing a 60 megawatt AC solar power plant project. The total project cost is estimated at INR 241 crores, with INR 195 crores secured through a bank term loan and INR 25-30 crores as equity from Hariom Pipes, complemented by central government subsidies. So far, INR 9.56 crores has been invested. Production from 10 MW of this capacity is expected to commence in the next month (Q1 FY27), generating fixed revenue at INR 3.21 per unit, with the entire 60 MW targeted for completion by the end of FY27.

The company addressed the temporary closure of its Tamil Nadu plant, clarifying that it was due to government election-related decisions and not non-compliance. Management stated that this temporary disruption had no material impact on revenue in April 2026, as supply was effectively managed through existing stocks and an asset-light model utilizing other facilities. They anticipate receiving the order to reopen the plant within two to three working days, highlighting the company's operational flexibility.

Hariom Pipe aims to enhance its backward integration from the current 40% to 80% within 3-4 months, contingent on receiving a single environmental clearance (EC) order from the Government of India. This move is expected to significantly improve the quality and consistency of raw material supply. Additionally, the company has incorporated Metal Mart Private Limited, which is in its initial setup phase, to support future business initiatives in trading metals, steel, and allied products, pending GST registration in various regions.

For FY27, Hariom Pipe targets a volume growth of approximately 30% year-on-year, aiming for 350,000 to 360,000 tonnes, while maintaining blended EBITDA per tonne in the range of INR 7,200-7,800. Key strategic priorities include improving capacity utilization, strengthening the value-added product mix, maintaining working capital discipline, optimizing financial costs, and generating healthy cash flows. The company also plans to increase its B2B contribution, which currently stands at 20%.