Sambhv Steel Tubes Limited reported robust Q3 and 9-month FY26 financial performance, achieving significant growth in revenue, EBITDA, and PAT. The company made substantial progress on capacity expansion, including greenfield and brownfield projects, and secured PLI scheme approval. Despite temporary margin pressures in Q3 due to raw material price fluctuations and import policies, management expressed strong confidence in a significant margin recovery in Q4 FY26.
| Metric | Value | YoY |
|---|---|---|
| 9M FY26 Sales Volume | 260000 tons | +34.0% YoY |
| 9M FY26 Revenue | ₹1.7K Cr | +70.0% YoY |
| 9M FY26 EBITDA | ₹184 Cr | +73.0% YoY |
| 9M FY26 PAT | ₹88 Cr | +110.0% YoY |
| Q3 FY26 Revenue | ₹589 Cr | +60.0% YoY |
| Q3 FY26 EBITDA | ₹51 Cr | +34.0% YoY |
Segment Breakdown
Share of Volume Sold
"The company has executed four MOUs to commence stainless steel pipes manufacturing under co-branding, with a target to increase sales through MOU holders from current 700-1,000 tons to 2,500 tons per month in the first phase. This is part of a strategy to sell 50% of 5,000 tons per month coil sales through MOU holders."
| Category | Headline | |
|---|---|---|
Capex | ₹250 crores this quarter · ₹930 crores (Stage 1) planned INR 600-650 crores from long-term debt and INR 300 crores from internal accruals for the balance INR 700 crores of Stage 1 capex. | |
Debt | Gross ₹210 crores |
| Category | Target | Priority |
|---|---|---|
| Profitability | EBITDA per ton→INR 7,000+ | High |
| Profitability | EBITDA per ton→INR 7,500 | High |
| Profitability | Overall Operating EBITDA→INR 260 crores+ | High |
| Profitability | Black Pipe Blended EBITDA per ton (Sustainable)→INR 6,200-6,500 | High |
| Profitability | HRAP Coil EBITDA Margin→INR 10,000 | High |
| Profitability | CR Bright Handled Coil EBITDA Margin→INR 15,000+ | High |
| Profitability | DFT Margins→INR 3,500-4,000 | High |
| Capacity | Galvanized Product Capacity→1,16,000 tons per annum | High |
| Capacity | Stainless Steel CR Capacity→1,16,000 tons per annum | High |
| Capacity | Greenfield Stainless Steel Capacity (Phase 1)→3,50,000 tons | High |
| Capacity | Greenfield Capacity Commissioning→Commissioned | High |
| Capacity | Total Stainless Steel Annual Capacity→4,70,000 tons | High |
| Capacity | ERW GI and GP Capacity→3,60,000 tons | High |
| Product Mix | Stainless Steel 300/200 Series Mix→50-50 | High |
| Realization | Stainless Steel Realization per ton→INR 1,50,000 | High |
| Volume | Blended Volume→1 lakh tons | Medium |
| Commercialization | Greenfield Phase 1 Commercialization→Commercialization | High |
| # | Metric | |
|---|---|---|
| 01 | Q4 FY26 Blended EBITDA per ton | |
| 02 | Stainless Steel CR Capacity Commissioning | |
| 03 | PLI Scheme 2.0 Details and Quantum | |
| 04 | Recovery of Balance Land Advance | |
| 05 | Greenfield Phase 1 Project Funding |
| Severity | Risk |
|---|---|
medium | EBITDA margin compression in Q3 FY26 Margin pressure in Q3 due to government opening stainless steel import window, fall in HR coil prices, and 15-day shutdown for capacity expansion. Management |
medium | Raw material price volatility Changes in raw material prices (e.g., HR coil, iron ore) impact product pricing and margins, with benefits/impact realized in subsequent quarters. Management |
medium | Ramp-up and market absorption for greenfield stainless steel capacity Analyst questioned the ramp-up risk for 6x stainless steel capacity expansion given past government delays. Management cited PLI support, scale advantage, and focus on specific product series (200/300) to mitigate this. Analyst |
Sambhv Steel Tubes Limited reported its strongest ever 9-month performance, with total sales volume, revenue, EBITDA, and PAT growing by 34%, 70%, 73%, and 110% respectively. For Q3 FY26, revenue increased by 60% year-on-year to INR 589 crores, and PAT more than doubled to INR 24 crores. The company's 9-month revenue reached INR 1,728 crores, with EBITDA at INR 184 crores and PAT at INR 88 crores, reflecting robust operational and financial progress.
The company is actively pursuing both brownfield and greenfield expansion. Brownfield initiatives include increasing galvanized product (GP) capacity to 1,16,000 tons per annum and doubling stainless steel CR capacity from 58,000 to 1,16,000 tons per annum, with the latter expected to be live by March 2026. A greenfield project at Kesda and Kuthrel Unit-II, targeting 3,50,000 tons of stainless steel in its first phase, has received environmental clearance, and project execution has commenced.
Q3 FY26 saw a reduction in EBITDA per ton from INR 6,100 in Q2 to INR 5,200, attributed to the government's temporary opening of stainless steel imports, a 6% fall in HR coil prices, and a 15-day shutdown for galvanizing capacity expansion. However, management expressed high confidence in a significant recovery for Q4, guiding for INR 7,500 EBITDA per ton, citing a reversal of these factors, including a 10% increase in coil prices and utilization of low-cost raw materials procured in Q3.
Sambhv is strategically focusing on high-margin, value-added stainless steel products. The company has secured approval for the PLI scheme 2.0 for its stainless steel products, with details to be finalized in February. Management noted that China's tightened export regime for stainless steel has led to price increases of INR 2,000-3,000 across various series, benefiting domestic manufacturers. The company is also developing co-branding MOUs to expand its stainless steel pipe sales, targeting 2,500 tons per month through these channels.
The first stage of the greenfield project is estimated to cost INR 930-940 crores, with INR 250 crores already incurred by December 2025. The remaining INR 700 crores will be spent over the next 12 months, funded by INR 600-650 crores from long-term debt and approximately INR 300 crores from internal accruals. Additionally, the company is planning a 25-30 MW captive power plant with an estimated capex of INR 125-150 crores to reduce dependence on external power.
As of December 31, 2025, the company's total debt stood at INR 210 crores, comprising INR 40 crores in term loans and INR 170 crores in working capital loans. Management highlighted that financial costs declined significantly in Q3 due to the repayment of long-term borrowings, indicating prudent debt management and a focus on strengthening the balance sheet.
Sambhv is actively researching and exploring entry into the stainless steel seamless tubes market. This segment is identified as a high-value, high-technology product with significant growth potential in sectors like defense, marine, and nuclear power, where current domestic supply is limited. The company aims to leverage its integrated plant and market understanding to capitalize on this opportunity, potentially through a joint venture.