Venus Pipes — Q3 FY26 earnings call

Call held 5 Feb 2026

Management summary

Venus Pipes & Tubes delivered a strong Q3 FY26 performance with robust revenue and PAT growth, driven by healthy domestic demand and a solid order book. The company is on track to commission new capacities for fittings and seamless pipes by March 2026, which are expected to significantly boost future revenue and margin. Management expressed optimism about growth opportunities in the power sector and a rebound in US exports following tariff resolutions.

Highlights

  • Q3 FY26 revenue from operations grew 28.3% YoY to INR296.7 crores.

  • Q3 FY26 PAT grew 42% YoY to INR25.6 crores.

  • EBITDA margin for Q3 FY26 improved to 16.4% from 16.1% in Q3 FY25.

  • Order book of approximately INR470 crores provides strong revenue visibility, up from less than INR350 crores last year.

  • New capacities for fittings and seamless pipes are progressing well and expected to come on stream by March 2026, driving future growth.

Concerns

  • A one-time impact of approximately INR65 lakhs was incurred in Q3 FY26 due to changes in gratuity and leave liability.

  • Export growth in Q3 FY26 was slower at 5% YoY, primarily due to a decline in US contribution to total exports (from 20% to 12%).

Key financials

2 periods

Q3 FY26

  • Revenue
    ₹296.7 Cr
    YoY +28.3%
  • EBITDA
    ₹48.8 Cr
    YoY +31%
  • EBITDA Margin
    16.4%
  • PAT
    ₹25.6 Cr
    YoY +42%
  • PAT Margin
    8.6%

9M FY26

  • Revenue
    ₹864.7 Cr
    YoY +23.5%

What they filed

Q1 FY27: revenue up 16.3%, net profit up 4.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue229 231 258 276 292 +28%297 +29%302 +17%321 +16%
EBITDA41 37 42 45 48 +17%49 +32%49 +17%52 +16%
Net profit24 18 24 25 26 +8%26 +44%26 +8%26 +4%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Seamless (Q3 FY26 Revenue Mix)
    60% Share of Total Revenue43% YoY Growth
  • Welded (Q3 FY26 Revenue Mix)
    34% Share of Total Revenue13% YoY Growth
  • Others (Q3 FY26 Revenue Mix)
    6% Share of Total Revenue
  • Seamless (9M FY26 Growth)
    27% Growth
  • Welded (9M FY26 Growth)
    22% Growth

Order book

high confidence

Total value

₹470 Cr

as of 2025-12-31 quantified

Execution

typically between six, seven months

Composition

Mix 3 geographies
  • Europe (9M FY26 Exports) 60%
  • USA (9M FY26 Exports) 20%
  • Middle East/UAE/Saudi (9M FY26 Exports) 10%

Share of order book by geography· partial disclosure (90% of the book)

Pipeline

other

Total demand from power sector (NTPC, Adani, BHEL, others) over 4-5 years

The order book is robust and provides good visibility, with expectations of increased orders from the US and power sector.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex Capex disclosed
    • New capacities for fitting and seamless pipe ₹60 Cr
    See, as we said earlier, the investment is roughly in the range of INR60-odd crores in our fitting business
  • Debt Net ₹260 Cr
    Net debt was around INR260 crores.

Guidance & targets

Revenue

  • Revenue Growth Revenue · FY27 · Medium confidence >20%
    See, again on an overall basis what we are currently guiding is at least more than 20% compared to FY26.

    — Kunal Bubna

  • Revenue from new capacities (fitting & value-added welded) Revenue · Full capacity run-up · Medium confidence INR350 crores
    See for condenser if I take a full capacity run up for fitting and value-added welded the better name would be rather than condenser. It should be running around INR350 odd crores.

    — Kunal Bubna

  • Revenue from new capacities (seamless & value-added welded) Revenue · FY27 · Medium confidence INR250-270 crores
    So basically out of INR350 crores, you will be able to do INR250 to INR270. That's how we should interpret?

    — Kunal Bubna

Profitability

  • EBITDA Margin Profitability · FY28 · High confidence 18%
    FY28 should be the year where the entire improvement should come.

    — Kunal Bubna

Capacity

  • Fittings Business Capacity Utilization Capacity · FY27 · Medium confidence ~50%
    So in the first year, maybe something near to 50% of that should be contributing.

    — Kunal Bubna

  • Fittings Business Capacity Utilization Capacity · FY28 · Medium confidence Substantial portion
    And in the FY '28, I think a substantial portion of the capacity should be utilized from the fitting business.

    — Kunal Bubna

Market Share

  • Export Share of Total Revenue Market Share · Ongoing · Medium confidence >30%
    The intent is to atleast maintain that currently. So futher we are trying tha if there a good margin order we get in export, it can go higher than that also. But the intent is currently at least above 30%.

    — Kunal Bubna

What to watch in Q4 FY26

Commissioning of new fittings and seamless pipe capacities

next quarter
Current Progressing well, expected to come on stream over coming months
Target Fully live by end of March 2026

Why it matters

These new capacities are key drivers for future revenue growth and margin expansion, as guided by management.

On the capex front, our new capacities for fitting as well as seamless pipe and tubes are progressing well and remain firmly on track. These facilities are expected to come on stream over the coming months and will further strengthen our ability to cater the high value and critical application segments.

Risks & concerns

  • CBAM (Carbon Border Adjustment Mechanism) compliance

    medium

    Revised calculations and formulas for CBAM have been released; the company is working with suppliers and consultants to address this.

    Management managing

  • One-time impact from Labour Code changes

    low

    Approximately INR65 lakhs impact due to increase in gratuity and leave liability on account of changes in Labour Code.

    Management acknowledged

  • Geopolitical issues impacting demand

    low

    Few geopolitical issues had been present, but easing US tariffs and sentimental improvement from India-EU deal are making the outlook positive.

    Management acknowledged

Q&A highlights

8 direct
Export growth momentum and impact of US tariffs Direct
So if you see, we had also been exporting to USA in the last quarter, we did around more than 20%. But this quarter it was around 12% sort of number of the total export what we exported to USA. ... I think as a pipe perspective, we should see order from USA also coming forward in coming quarters.

Analyst questioned the slowdown in export growth, and management clarified it was due to reduced US contribution but expects a rebound with easing tariff uncertainty.

Asked by Dhruv Jain

Ramp-up and contribution of the new fittings business Direct
So from the next year, we will be getting the benefit. So in the first year, maybe something near to 50% of that should be contributing. And in the FY '28, I think a substantial portion of the capacity should be utilized from the fitting business.

Management provided specific guidance on the expected utilization and contribution of the new fittings business over the next two fiscal years.

Asked by Dhruv Jain

EBITDA margin trajectory with new value-added products Direct
See, it's around currently if you see those value-added product, the contribution what is coming in the business is around 15% to 20%. And going forward, given the expansion what we are doing on the side of fitting and also on the side of seamless and other businesses, we believe it should be at least double of that what is currently being contributed. And on the front of EBITDA it's 16.4%-16.5% range for this current quarter and we believe, see it can move from 16% to, can go up to 18%.

Management outlined the current contribution of value-added products and provided a clear target for EBITDA margin improvement to 18% by FY28, linked to product mix changes.

Asked by Romil

Opportunities and market share in the power sector Direct
No, the pipe order in the stainless-steel pipe segment order, not only INR3,000 crores order is pending with the BHEL, whatever the tender has been received from the NTPC or from Adani group, the BHEL or other power companies. So we are anticipating in the next four to five years almost more than 8,0000 metric ton demand will come from the in-power sector. ... Almost you can say it will be more than INR6,000 crores near about. ... our market share is approximately 15% to near about 15% to 20%.

Management quantified the significant market opportunity in the power sector and stated the company's current market share, with expectations for it to increase.

Asked by Bhargav

Net debt levels and future outlook Direct
Net debt was around INR260 crores. ... For the coming quarter we believe that it should not increase much. INR10 to INR20 crores from here.

Management provided a specific net debt figure and a clear outlook on its expected movement, indicating controlled leverage.

Asked by Pallav Agarwal

Lead time for international approvals Direct
See again it's again depend on client basis and their comfort level. So sometime it can take you 3 to 5 year also. Sometime keeping your credential and all you can get in less than 2 year also. But generally the lead times are generally high for getting these approval from these multinational companies.

Analyst inquired about the process and timeline for securing international approvals, which is crucial for expanding export markets.

Asked by Sonal Minhas

Current capacity utilization and timeline for new capacities Direct
In case of Seamless it's more than 90% and on the side of Welded it is more than 60%. ... See the capacity of fitting and seamless pipe, a portion of seamless has come but major capacity will be we are targeting by end of this financial year. So primarily all the capacity we will be live in the coming financial year that is FY 26-27.

Management provided current utilization rates and confirmed the timeline for new capacity commissioning, which is a key growth driver.

Asked by Shubham Thorat

Overall demand situation and outlook Direct
See few of the geopolitical issues had been there. But with the recent ease of tariff on India by US, I think it's a good sign. Again India the EU deal was not directly impacting us, but again it's a sentimental improvement is also there. So we believe and also there is a demand from power and other sector in the Indian market also. So keeping all this perspective going forward it seems to be quite positive from now onward.

Management provided a comprehensive view of the demand environment, highlighting positive factors like easing tariffs and domestic sector growth.

Asked by Shubham Thorat

3 min read 6 chapters

Detailed narrative

Robust Financial Performance in Q3 & 9M FY26

Venus Pipes & Tubes reported strong financial results for Q3 FY26, with revenue from operations growing 28.3% year-on-year to INR296.7 crores. For the nine months ended December 31, 2025, revenue reached INR864.7 crores, already 90% of the full FY25 revenues, indicating sustained growth momentum. Profit After Tax (PAT) for Q3 FY26 saw a significant increase of 42% year-on-year to INR25.6 crores. The company's EBITDA margin for Q3 FY26 improved to 16.4% from 16.1% in the corresponding period last year, reflecting operational efficiencies.

Healthy Order Book and Future Growth Drivers

The company maintains a strong order book of approximately INR470 crores, which is a substantial increase from less than INR350 crores in the previous year. This order book provides good revenue visibility, with an expected execution timeline of 6-7 months. Management highlighted that new capacities for fittings and seamless pipes are progressing well and are anticipated to be fully operational by the end of March 2026. These new facilities are expected to be key drivers for accelerating growth and contributing significantly to revenues in FY27 and FY28.

Strategic Focus on Value-Added Products and Key End-Use Sectors

Venus Pipes is strategically enhancing its value-added product (VAP) portfolio, which currently accounts for 15-20% of its business and is projected to double with ongoing expansions. The company is actively targeting critical end-use sectors such as power, oil & gas, engineering, and food processing, which demand high technical expertise and product quality. The power sector alone presents a significant opportunity, with an estimated demand of over INR6,000 crores in stainless steel pipes over the next 4-5 years, where Venus Pipes aims to expand its current 15-20% market share.

Export Market Dynamics and US Tariff Resolution

While Q3 FY26 export growth was a modest 5% year-on-year, primarily due to a temporary decline in US contribution to total exports (from 20% to 12%), management is optimistic about a rebound. The recent resolution of Section 232 tariffs in the US is expected to stimulate new orders from the region in the coming quarters. Exports currently constitute over 30% of the total order book, with Europe being the largest market (60-65% of 9M FY26 exports), followed by the US (20-25%) and the Middle East/UAE/Saudi region (10-12%).

Margin Expansion and Disciplined Capital Allocation

The company is focused on improving its EBITDA margin from the current 16.4% to a target of 18% by FY28, driven by a favorable product mix towards value-added offerings and enhanced capacity utilization. Capital expenditure for the new fittings business is approximately INR60 crores, with an expected asset turn of 3x-3.5x. Net debt stands at INR260 crores, and management anticipates only a marginal increase of INR10-20 crores in the coming quarter, demonstrating a disciplined approach to capital allocation and maintaining a healthy balance sheet.

Capacity Utilization and Expansion Outlook

Current capacity utilization remains healthy, with seamless pipes operating at over 90% and welded pipes at over 60%. The newly commissioned capacities are ramping up well. The major new capacities for fittings and seamless pipes are on track for commissioning by the end of March 2026, with full operationalization expected in FY27. These expansions are crucial for meeting the growing demand and strengthening the company's competitive position in the stainless steel pipes and tubes industry.

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