Hi-Tech Pipes

Hi-Tech Pipes reported a robust performance for Q4 FY26, with revenue surging 102% year-on-year to INR1,480 crores and sales volume growing 27% to 1.47 lakh tons. For the full fiscal year 2026, revenue increased by 37% to INR4,200 crores, and sales volume reached 5.32 lakh tons. EBITDA for Q4 FY26 stood at INR46 crores, a 33% increase, with EBITDA per ton improving 5% to INR3,150. Total comprehensive income for FY26 was INR77 crores, up 5% from FY25.

The company is on track with its vision to achieve 2 million tons capacity, planning an additional 1 million tons by FY29. Key projects include the DFT facility at Sanand Unit 2 Phase 3, expected to be operational by Q3 FY27, and the APA pipes facility, which should be ready by Q4 FY27. The greenfield Hindupur facility, focusing on ERW pipes and solar tubes, is also slated for operationalization by Q4 FY27, contributing to an operational capacity of 1.4 million tons by the end of FY27 and 1.7 million tons by FY28.

Hi-Tech Pipes is intensifying its focus on high-margin value-added products, which already accounted for 39% of the business mix in FY26. The company aims to increase this contribution to 50% by the end of FY27, driven by new capacities like the Hindupur facility (1.5 lakh tons capacity) dedicated to coated steel tubes for the solar segment. The successful establishment of 300x300 hollow section products further strengthens this portfolio.

The company maintains a healthy balance sheet, reflected by a current ratio of 2.17x and a debt-equity ratio of 0.18 in FY26, providing ample financial flexibility. A preferential issue of INR90 crores will support incremental working capital for the ongoing capital expenditure pipeline. For the incremental 1 million tons capacity, INR100 crores is already in CWIP, with an additional INR300 crores needed, of which INR75-100 crores is targeted for FY27.

Hi-Tech Pipes is committed to environmental responsibility, having added 1 megawatt rooftop solar capacity at its Secunderabad Unit 3 facility, bringing its total installed solar capacity to 16.5 megawatts, covering approximately 35% of its power requirement. Furthermore, the company has initiated the use of green hydrogen at its Secunderabad Unit 1 facility, aiming to reduce its carbon footprint and promote sustainable manufacturing practices.

Despite a positive outlook for the steel tubes and pipes industry driven by infrastructure development and renewable energy investments, Q4 FY26 presented challenges. The company faced pressure on input costs and export realizations due to volatility in gas prices, intermittent availability, elevated ocean freight costs, and geopolitical factors. Management expects EBITDA per ton to be in the range of INR3,500 to INR4,000 for FY27 and FY28, assuming market stability.