Any current/future new fundraising through debt or equity?

For the ongoing capex in Stage 1 (approx. INR 930-940 crores), the company plans to raise around INR 600-650 crores through long-term debt. The balance INR 300 crores for the project will come from internal accruals. The company currently has INR 210 crores in total debt (INR 40 crores term loans and INR 170 crores working capital loans). Regarding seamless pipes (stainless steel seamless), any new capex beyond the already announced amount will be treated as separate capex and announced accordingly. There is no mention of immediate equity fundraising, only plans for additional debt to

Any current/future capex/capital investment/strategic investment?

Sambhv Steel Tubes Limited is undertaking a major capex for the Greenfield stainless steel expansion (Stage 1) with an estimated cost of INR 930-940 crores, of which INR 250 crores has been incurred as of December; remaining INR 700 crores planned over next 12 months. Funding for this includes INR 600-650 crores from long-term debt and approximately INR 300 crores from internal accruals. Separate capex will be announced for stainless steel seamless pipe project, potentially as a JV, distinct from Stages 2 and 3. Planning a 25-30 MW captive power plant for Sarora to reduce grid power dependence

Future growth expectations in sales/revenue/volumes?

Targeting commercialization of Stage 1 expansion by Q4 next year, with numbers reflecting from Q1 FY’28. Expecting Q4 FY26 blended EBITDA per ton of INR 7,500 and overall FY26 EBITDA per ton around INR 7,000. Projected sales volume for Q4 FY26 between 1 to 1.5 lakh tons (blended). Brownfield and greenfield expansions to significantly increase stainless steel capacity from 1,00,000 to 3,50,000 tons. Growth focus on stainless steel seamless pipes addressing unserved high-diameter imports. Marketing efforts intensifying in West, Central, and North India; proactive expansion planned in Northeast a

Future growth expectations in earnings/operating earnings/profits/EPS?

For FY26, the company is confident of achieving an operating EBITDA of around INR 260 crores at the enterprise level with a blended EBITDA per ton of approximately INR 7,000. Q4 FY26 is expected to see a further rise with an EBITDA per ton of about INR 7,500, driven by improved raw material costs, increased galvanizing capacity, and higher stainless steel prices due to import duties. Volumes for Q4 FY26 are guided to be around 1 lakh to 1.5 lakh tons, providing growth in topline. From FY27 onwards, significant growth is expected from stainless steel Brownfield expansion and the upcoming Greenf

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Sambhv Steel Tubes LtdQ4 FY27Industrial Products

Sambhv Steel Tubes Ltd Q4 FY27 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹108P/E: 22.8Market Cap: ₹3.3K CrSector: Industrial Products

Management growth scorecard

Revenue

Category 1

Margin

Category 1

Fundraise

Yes

Order

N/A

Capex

Yes

4 of 4 growth signals are positive — a strong management growth story.

Full analysis

Revenue guidance

Category 1

→Targeting commercialization of Stage 1 expansion by Q4 next year, with numbers reflecting from Q1 FY’28.
→Expecting Q4 FY26 blended EBITDA per ton of INR 7,500 and overall FY26 EBITDA per ton around INR 7,000.
→Projected sales volume for Q4 FY26 between 1 to 1.5 lakh tons (blended).
→Brownfield and greenfield expansions to significantly increase stainless steel capacity from 1,00,000 to 3,50,000 tons.
→Growth focus on stainless steel seamless pipes addressing unserved high-diameter imports.
→Marketing efforts intensifying in West, Central, and North India; proactive expansion planned in Northeast and North regions.
→Expect upward sales growth driven by value-added product mix and brand building in stainless steel.
→Capex of around INR 930-940 crores for Stage 1, mainly funded by long-term debt and internal accruals, supporting future volume and revenue growth.

Margin guidance

Category 1

→For FY26, the company is confident of achieving an operating EBITDA of around INR 260 crores at the enterprise level with a blended EBITDA per ton of approximately INR 7,000.
→Q4 FY26 is expected to see a further rise with an EBITDA per ton of about INR 7,500, driven by improved raw material costs, increased galvanizing capacity, and higher stainless steel prices due to import duties.
→Volumes for Q4 FY26 are guided to be around 1 lakh to 1.5 lakh tons, providing growth in topline.
→From FY27 onwards, significant growth is expected from stainless steel Brownfield expansion and the upcoming Greenfield project phases.
→The stainless steel seamless pipe segment is targeted for import substitution with high-margin products, indicating future earnings expansion.
→Expected capex of about INR 700-940 crores over stages aiming to expand capacity and market presence, potentially boosting profitability.
→The company targets EBITDA margin improvement with better product mix, branding, and cost efficiencies going forward.

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Fundraise plans

Yes

→For the ongoing capex in Stage 1 (approx. INR 930-940 crores), the company plans to raise around INR 600-650 crores through long-term debt.
→The balance INR 300 crores for the project will come from internal accruals.
→The company currently has INR 210 crores in total debt (INR 40 crores term loans and INR 170 crores working capital loans).
→Regarding seamless pipes (stainless steel seamless), any new capex beyond the already announced amount will be treated as separate capex and announced accordingly.
→There is no mention of immediate equity fundraising, only plans for additional debt to finance expansions.

Order book

The transcript from the provided pages does not explicitly mention details about the current, expected order book, or pending orders for Sambhv Steel Tubes Limited. However, a few related points can be inferred: - The company is actively expanding capacity with brownfield (galvanized and stainless steel) and greenfield (stainless steel) projects aiming to enhance production and sales volumes, indicating healthy incoming demand. - MOUs and co-branding partnerships are in place with multiple locations (Raipur, Gwalior, Sambalpur, Jamshedpur) to boost sales, aiming to increase sales executed through MOU holders from 700-1,000 tons to 2,500 tons. - Marketing efforts and fabricator meets are ongoing to strengthen brand presence and create a market for additional capacity. - Volume guidance for Q4 is between 1 lakh to 1.5 lakh tons on a blended basis, suggesting strong sales order pipeline. - No direct quantitative disclosure on total order book or pending orders was provided in the pages reviewed.

Capex plans

Yes

→Sambhv Steel Tubes Limited is undertaking a major capex for the Greenfield stainless steel expansion (Stage 1) with an estimated cost of INR 930-940 crores, of which INR 250 crores has been incurred as of December; remaining INR 700 crores planned over next 12 months.
→Funding for this includes INR 600-650 crores from long-term debt and approximately INR 300 crores from internal accruals.
→Separate capex will be announced for stainless steel seamless pipe project, potentially as a JV, distinct from Stages 2 and 3.
→Planning a 25-30 MW captive power plant for Sarora to reduce grid power dependence, with estimated capex of INR 125-150 crores.
→Received approval under PLI scheme 2.0 for stainless steel product expansion, expected to provide incentives.
→Brownfield expansions are ongoing for galvanized and stainless steel capacities, with stainless steel capacity ramp-up targeted by Q4 FY27.

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