Vibhor Steel Tubes Limited

Vibhor Steel Tubes Limited successfully commissioned its new plant in Jharsuguda, overcoming previous hurdles related to electricity connection. The plant has commenced manufacturing three sizes of steel pipes (1.5-inch, 2-inch, and 1-inch), with plans to add more sizes this month. The galvanised capacity is also fully operational and running smoothly. Notably, the plant has already manufactured approximately 1,000 tonnes of highway guard rails and completed over 500 tonnes of galvanizing, marking a strong start to production.

With the new Jharsuguda plant, Vibhor Steel is strategically focusing on capturing new markets, particularly in the North-East of India, as its primary target for Q2 FY26 and the rest of the year. The company also aims to expand its presence in West Bengal, Odisha, and Raipur, leveraging its existing dealer network. Management expressed optimism about achieving new turnover and tapping into previously underserved markets, viewing this expansion as a foundation for future growth.

Management noted that the domestic raw material market is competitive, and demand has been steady, which positively impacted Q1 FY26 turnover and margins. For the full year, the company anticipates a 'very promising year' with stable raw material prices, unlike the fluctuations seen last year. This stability, coupled with expected price increases after Diwali, is projected to lead to 'very healthy' margin realization for FY26.

The company confirmed an installed CAPEX of ₹120 crores for the new Jharsuguda plant. This plant has an installed capacity similar to its Maharashtra and Telangana units, estimated at 100,000-120,000 tonnes per annum. While capacity utilization is still being determined as it's only the first month of manufacturing with electricity, the company expects to meet demand from existing dealers in the new regions within Q2 FY26.

Responding to an analyst's query, management clarified that while steel pipes are a major component in pre-engineered buildings (PEBs) and they supply to this segment through their dealer network, they do not currently intend to 'jumpstart into a different vertical which is of PEBs.' The immediate focus remains on streamlining operations in the new North-East market before considering diversification into new areas like the PV (photovoltaic) section in the future.