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    Venus Pipes

    VENUSPIPES
    Capital Goods·26 May 2026
    Management Summary

    Venus Pipes & Tubes delivered strong Q4 and FY26 results, with revenue growing 17% and 22% respectively, driven by strategic capacity expansion and entry into new segments like data center spooling solutions. Despite challenges from global geopolitical tensions and elevated raw material prices, the company maintained healthy EBITDA margins and secured significant new orders. Management provided optimistic guidance for FY27, targeting over 20% volume growth and improved margins.

    Highlights

    5

    • FY26 Revenue increased by 22% to INR1,166.8 crores, demonstrating strong overall growth.

    • Q4 FY26 Revenue from operations grew 17% YoY to INR302.2 crores.

    • EBITDA for FY26 grew 14% to INR190.6 crores, with a consistent margin of 16.3%.

    • Secured a significant LOI of INR185 crores for spooling solutions in the fast-growing data center segment, marking entry into a high-potential area.

    • Successfully commissioned the entire capex program, including expansion of seamless pipe capacity to 20,400 MTPA and achieving 100% backward integration for mother hollow pipes.

    Concerns

    3

    • Q4 export sales declined to INR87.8 crores from INR112.5 crores in the same period last year, impacted by temporary disruption from the Middle East conflict.

    • PAT growth for Q4 FY26 was 7% YoY at INR25.4 crores, lower than revenue and EBITDA growth.

    • Management noted that a prolonged period of elevated raw material prices may have some impact going forward.

    Key financials

    Metrics

    19

    Periods

    6

    Headline

    1
    • EBITDA per kg (blended)
      ₹65

    Q4 FY25

    1
    • Export Sales
      ₹112.5 Cr

    Q4 FY26

    6
    • Revenue from Operations
      ₹302.2 Cr
      YoY+17%
    • EBITDA
      ₹49.4 Cr
      YoY+19%
    • EBITDA Margin
      16.3%
    • PAT
      ₹25.4 Cr
      YoY+7.0%
    • PAT Margin
      8.4%

    Q4 QoQ

    1
    • Volume Growth
      1%

    Q4 YoY

    3
    • Volume Growth
      12%
    • Seamless Segment Revenue Growth
      15%
    • Welded Segment Revenue Growth
      10%

    FY26

    7
    • Revenue from Operations
      ₹1,166.8 Cr
      YoY+22%
    • EBITDA
      ₹190.6 Cr
      YoY+14.0%
    • EBITDA Margin
      16.3%
    • EBITDA to CFO Conversion
      59%
    • Volume Growth
      15%

    Segment breakdown

    Q4 FY26 Revenue Bifurcation
    59% Seamless Pipes Share34% Welded Pipes Share7% Others Share
    List

    Order Book

    high confidence

    Total Value

    ₹ 450 crores

    as of 2026-05-26

    quantified

    Execution

    executable in about 15 months for the INR185 crores LOI

    Composition

    Export(geography)
    40.0%

    Pipeline

    L1 awaiting loa

    LOI from data center segment and L1 tenders from BHEL

    "The company has a well-diversified order book of INR450 crores, supplemented by an INR185 crores LOI from a data center and INR50 crores in L1 BHEL tenders, totaling INR685 crores visibility."

    Source:
    Prepared remarks

    Capital allocation

    1
    high confidence
    CategoryHeadline
    Capex

    ₹90 crores

    Guidance & targets

    8
    CategoryTargetPriority
    Volume
    Volume Growth
    >20%
    		High
    Margin
    EBITDA Margin
    Higher than 16.3%
    		High
    Margin
    EBITDA Margin
    17-18%
    		High
    Margin
    Spooling Business EBITDA Margin
    Higher than current business
    		Medium
    Other
    Spooling Business Asset Turn
    ~3x
    		Medium
    Other
    Spooling Business Commercial Production
    Start in Q3
    		High
    Revenue
    Export Revenue Share
    30-35%
    		High
    Revenue
    Overall Pipe Business Growth
    >20%
    		High

    Spooling Business Commercialization & Revenue

    Q3 FY27
    CurrentINR70 crore capex completed, INR185 crore LOI secured
    TargetCommercial production starts in Q3 FY27, initial revenue contribution

    Why it matters

    This new segment is expected to be higher margin and contribute significantly to future growth, validating the strategic capex.

    Almost trial run will be over in the Q2 of this financial year. And commercial production, we are expecting to start in Q3 -- mid of the Q3.

    How to verify

    capital_allocation.capex.purposes

    Risks & concerns

    3
    RiskSeverity

    Global Geopolitical Tensions and Middle East Conflict

    Impacted Q4 export sales and supply chains, causing temporary softness, but diversified presence helped maintain momentum. — Management acknowledged

    medium

    Prolonged Elevated Raw Material Prices

    May have some impact going forward, though managed effectively so far with strong procurement and operational efficiency. — Management acknowledged

    medium

    Gas Shortage

    Increased gas prices were a challenge, but the company managed the impact effectively. — Management acknowledged

    low

    Q&A highlights

    8

    “So, see, we are targeting to get on with this business by end of this calendar year. And we see a turn of around 3x of investment is expected from this business. And see, it would be higher margin-driven business, higher than what we currently earn in our business.”

    Analyst sought clarity on the new spooling business, and management provided specific financial targets and timeline, indicating a significant new growth avenue.

    asked by Parth Bhavsar

    2 min read5 chapters

    Detailed Narrative

    01

    Q4 & FY26 Performance Overview

    Venus Pipes & Tubes delivered a robust performance in Q4 and FY26. Revenue from operations for Q4 FY26 stood at INR302.2 crores, marking a 17% YoY growth, while full-year FY26 revenue reached INR1,166.8 crores, a 22% increase. EBITDA for FY26 grew 14% to INR190.6 crores, maintaining a healthy margin of 16.3%. Q4 PAT was INR25.4 crores, a 7% YoY growth, with a PAT margin of 8.4%. The company also reported a 59% EBITDA to CFO conversion for FY26.

    02

    Strategic Capacity Expansion & Backward Integration

    The company successfully completed its entire capex program, significantly enhancing its manufacturing capabilities. Seamless pipe capacity was expanded from a planned 4,800 metric tons per annum to 6,000 metric tons per annum, with 4,200 MTPA becoming operational today. Total capex for seamless, welded, and fittings exceeded INR200 crores. Furthermore, Venus Pipes achieved 100% backward integration for its 20,400 MTPA seamless pipe capacity, enabling in-house manufacturing of mother hollow pipes to strengthen operational efficiency and supply reliability.

    03

    Entry into Spooling Solutions & Data Center Segment

    Venus Pipes is strategically entering the spooling solutions business with a capex of approximately INR70 crores. This new venture is supported by an INR185 crores Letter of Intent (LOI) from a leading data center, marking the company's entry into this high-potential segment. Management expects the spooling business to be operational by the end of the calendar year, offering higher value addition and margins, with an anticipated asset turn of around 3x. Commercial production is targeted to commence by Q3 FY27.

    04

    Market & Export Dynamics

    Despite a challenging global environment marked by geopolitical tensions and the Middle East conflict, Venus Pipes achieved an 18% growth in exports for FY26. However, Q4 export sales experienced a temporary softness, declining to INR87.8 crores from INR112.5 crores YoY due to the Middle East conflict. The company maintains an export revenue share of over 30% and anticipates 30-35% going forward⏳. Domestic demand remained robust, particularly in Q4, with strong inquiries from new age industries like data centers, semiconductors, and clean energy.

    05

    Financial Outlook & Guidance

    For FY27, Venus Pipes projects a volume growth of at least 20% and expects EBITDA margins to be higher than the 16.3% achieved in FY26, with a target of 17-18% by FY28. The company boasts a strong order visibility of INR685 crores, comprising INR450 crores in existing orders, an INR185 crores LOI from the data center segment, and INR50 crores in L1 BHEL tenders. An additional capex of INR90-100 crores is planned for FY27 to support continued growth.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.