Hariom Pipe Industries Ltd Q1 FY27 Earnings Analysis

- FY27 volume guidance: Targeting 350,000 to 360,000 tons, implying ~20-25% growth (Page 14, 17). - Capacity: Existing capacity can support up to 30% volume growth y-o-y, subject to market conditions and profitability focus (Page 6). - Sales focus: Emphasis on profitable, cash-generating growth rather than aggressive volume push; B2B sales and dealer expansion are key growth drivers (Page 17, 18). - Product mix: Growth expected across a mixture of coils, MS, and GI pipes; scaffolding volumes weak, focus shifting to more stable credit models (Page 18). - Revenue and EBITDA growth: Revenue grew 23% in FY26 with a stable 12.56% EBITDA margin; management targets sustainable margins and continuous EBITDA per ton improvement (Page 4, 9). - Value-added products: Currently 98% of revenue; focus remains on profitability and OEM growth instead of just volume (Page 8, 18).

- FY26 PAT grew by 23% year-on-year, reaching INR 76 crores, with improving profitability trends. - The company aims for volume growth of approximately 20-30% in FY27, subject to market conditions and profitability focus. - Blended EBITDA per tonne improved in FY26; Q4 EBITDA was INR 7,800, up from INR 6,583 in Q4 FY25. - Management targets sustaining or improving EBITDA margins around 12.5%, with continuous efforts to increase EBITDA despite market volatility. - Profitability focus prioritized over volume growth to maintain sustainable margins. - Expansion includes value-added products (98% of revenue) and new solar power projects expected to contribute stable, fixed revenues with minimal operating expenses. - Return metrics improved with FY26 ROCE at 21%, indicating effective capital utilization. - Ongoing efforts to strengthen capacity utilization, operating efficiencies, and working capital discipline support future profit growth.

- Hariom Pipe Industries has a solar power project with a total CapEx of around INR 240 crores for 60 megawatts capacity. - Bank term loan of INR 195 crores taken for this project; net debt post-completion expected around INR 160 crores. - Equity investment by Hariom Pipes in the solar power unit is INR 25-30 crores. - So far, INR 9.56 crores invested, with 8 out of 13 project locations underway; 38 MW under construction, 10 MW production starting next month. - Remaining CapEx for FY27 related mainly to completing the solar project and associated pilot projects. - Backward integration expansion is on hold pending environmental clearance (EC) from the government; no construction without EC. - Future strategic investment includes expanding value-added products and capacity utilization to support profitable growth rather than volume chase.

- The company has taken debt of INR195 crores related to the solar power project, with net debt after completion expected around INR160 crores. (Page 13) - Capital expenditure for the solar power project is around INR241 crores, largely backed by capital subsidy from the central government, with only INR25-30 crores as equity component from Hariom Pipes. (Page 7, 13) - No specific mention of any new fundraising through debt or equity beyond this ongoing project debt. - The company is currently managing working capital discipline and optimizing financial costs, indicating a cautious approach toward future fundraising. (Page 5) - Environmental clearance (EC) approval is awaited for expansion plans related to backward integration; no construction or fundraising steps initiated until clearance is received. (Page 13) Overall, no new or future fundraising through debt or equity is explicitly announced other than the existing solar project financing.

The transcript does not provide specific details on the current or expected order book or pending orders for Hariom Pipe Industries Limited during the Q4 FY26 conference call. However, some relevant points are: - The company is focusing on increasing B2B clients and has grown B2B contribution from 15% to 20% in Q4 FY26. - Efforts are ongoing to add new dealers and deepen market presence. - The company remains confident of achieving volume guidance of 350,000 to 360,000 tons in FY27, indicating healthy demand. - No direct mention of exact order book size or value was made during the call. - OEM demand is stable, and the company meets supply commitments despite temporary plant closure. - Management emphasized maintaining operating efficiency and financial discipline while focusing on profitable growth rather than only volume. In summary, while the management expresses confidence in demand and growing B2B sales, no explicit order book figures were disclosed.