Sambhv Steel Tubes544430Capex expansion plan

Board approves 14,400 MTPA stainless steel seamless pipes project and Q2/H1 results

Board approved Q2/H1 FY27 results: Q2 revenue ₹8,359.86 million, profit ₹612.87 million.

By ScoutQuest · Thu 29 Oct 2026, 1:52 PM IST · 3 min read

Q2 Revenue: ₹8,359.86 million
Q2 Profit: ₹612.87 million
Greenfield Project Capacity and Investment: 14,400 MTPA, ₹1,480.00 million, ₹1,000.00 million debt, by March 2028

Unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2026, as recommended by the Audit Committee.
The Statutory Auditors' Limited Review Reports on those results.
A greenfield manufacturing facility for stainless steel seamless pipes and tubes through wholly owned subsidiary Sambhv Tubes Limited (formerly Sambhv Tubes Private Limited), in Chhattisgarh.

Proposed initial capacity: 14,400 MTPA. Existing capacity in this product line is Nil, so total capacity after the addition is also 14,400 MTPA.
Estimated investment: ₹1,480.00 Million, to be funded through a mix of debt and internal accruals, of which ₹1,000.00 Million is proposed through debt.
Expected completion: March 2028.
The stated rationale covers demand for stainless steel seamless pipes and tubes, import substitution potential, export opportunities, a diversified end-user industry base and long-term scalability.

Revenue from operations: ₹8,359.86 million in the quarter ended September 30, 2026, against ₹7,321.73 million in the June 2026 quarter and ₹5,801.69 million in the September 2025 quarter. For the half year: ₹15,681.59 million against ₹11,387.98 million.
Profit for the period: ₹612.87 million for the quarter and ₹1,178.99 million for the half year, against ₹566.12 million and ₹633.64 million respectively.
Basic and diluted EPS: ₹2.08 for the quarter and ₹4.00 for the half year (not annualised).
Finance costs: ₹108.74 million for the quarter and ₹215.95 million for the half year.

Non-current borrowings rose to ₹4,429.56 million at September 30, 2026 from ₹2,258.87 million at March 31, 2026; current borrowings were ₹1,130.30 million against ₹1,454.19 million.
Capital work-in-progress increased to ₹4,364.99 million from ₹1,872.36 million.
Cash and cash equivalents: ₹5.72 million at September 30, 2026, against ₹616.19 million at March 31, 2026.
Net cash generated from operating activities for the half year: ₹3,053.92 million; net cash used in investing activities: ₹5,304.28 million.

The company issued and allotted 86,95,400 fully convertible equity warrants at an issue price of ₹ 115.00 per warrant on a preferential basis, after stock exchange approval on October 07, 2026.
Upfront subscription of ₹ 28.75 per warrant (25% of issue price) was received, aggregating to INR 249.99 millions; each warrant converts into one equity share of ₹ 10 each within 18 months of allotment, on payment of the balance consideration.

The update carries two separate messages: a financial results disclosure for the September 2026 quarter and half year, and a board decision to build new capacity.
The results describe the business as it stands today, while the new plant is a future capacity addition that is expected to be completed only by March 2028, so its contribution would come later.
The project is being set up in a wholly owned subsidiary, which the company consolidates; the ₹1,000.00 Million debt proposed for it is a funding commitment to track, alongside the higher borrowings and capital work-in-progress already visible in the balance sheet.
The warrants are convertible into equity shares within 18 months on payment of the balance, so the equity base can change over that period; the balance consideration, when paid, would come into the company.

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