Sambhv Steel Tubes Ltd (SAMBHV) Quarterly Report Analysis & Insights

Sambhv Steel Tubes Ltd

| Statement Of Consolidated Financial Results For The Quarter And Year Ended March 31, 2026

⬤9th May 26

Summary : Sambhv Steel Tubes reports strong growth, significant capacity expansion, and positive cash flow, despite a minor legal challenge.

Quarterly Report Analysis & Insights

Financial Disclosures

Consolidated Cost of materials consumed: ₹17,383.77 million (FY26) vs ₹10,860.08 million (FY25).
Consolidated Employee benefits expense: ₹1,344.18 million (FY26) vs ₹884.21 million (FY25).
Consolidated Finance costs: ₹413.32 million (FY26) vs ₹472.94 million (FY25).
Consolidated Other expenses: ₹2,807.05 million (FY26) vs ₹2,039.83 million (FY25).
Consolidated Revenue from operations: ₹24,132.43 million (FY26) vs ₹15,113.55 million (FY25).
Standalone Revenue from operations: ₹24,132.43 million (FY26) vs ₹15,113.55 million (FY25).
Consolidated Net cash from operating activities: ₹2,115.26 million (FY26) vs ₹1,261.90 million (FY25).
Consolidated Net cash used in investing activities: ₹(3,960.69) million (FY26) vs ₹(2,331.59) million (FY25).
Consolidated Net cash from financing activities: ₹2,412.43 million (FY26) vs ₹1,045.41 million (FY25).
Consolidated Cash and cash equivalents at year end: ₹619.04 million (FY26) vs ₹52.04 million (FY25).
Consolidated Total Assets: ₹20,657.05 million (Mar 31, 2026) vs ₹14,045.85 million (Mar 31, 2025).
Consolidated Equity Share Capital: ₹2,946.71 million (Mar 31, 2026) vs ₹2,410.02 million (Mar 31, 2025).
Consolidated Other Equity: ₹7,589.36 million (Mar 31, 2026) vs ₹2,543.39 million (Mar 31, 2025).
Consolidated Non-current Borrowings: ₹2,258.87 million (Mar 31, 2026) vs ₹3,303.30 million (Mar 31, 2025).
Consolidated Current Borrowings: ₹1,454.19 million (Mar 31, 2026) vs ₹1,740.98 million (Mar 31, 2025).
Consolidated Trade Payables: ₹5,257.18 million (Mar 31, 2026) vs ₹3,199.09 million (Mar 31, 2025).
Consolidated Trade Receivables: ₹2,225.98 million (Mar 31, 2026) vs ₹1,471.55 million (Mar 31, 2025).
Consolidated Inventories: ₹4,425.20 million (Mar 31, 2026) vs ₹2,538.90 million (Mar 31, 2025).
Both standalone and consolidated financial results are presented and audited.
Consolidated results include a subsidiary (Sambhv Tubes Limited) and an associate (Clean Max Opia Private Limited).

Corporate Overview

Manufacturing units in Sarora, Tilda, Kuthrel, Raipur (Chhattisgarh, India).
Registered office in Raipur, Chhattisgarh, India.
Legal issue regarding land purchase with undisclosed encumbrances.
Uncertainty in recovery of advance related to land purchase.
Reduced dependency on external power source due to captive power plant.
Manufacturing of steel pipes and tubes.
Formal and compliant, focusing on regulatory disclosures and operational updates.
Steel products.
Existing capacity (Sarora): 350,000 MTPA.
Existing capacity (Unit-3): 25MW.
Proposed addition (Sarora): 150,000 MTPA.
Proposed addition (Unit-3): 30MW.
Total capacity after expansion: 500,000 MTPA and 55MW.
Expansion of Pipe Mill Complex by 150,000 MTPA.
Setting up an additional 30 Megawatt Power Plant.
Total investment of ₹500 Million for Sarora expansion and ₹1,500 Million for Unit-3.
Proposed capacity to be added by December 2027.
Financing through debt and internal accruals.

Risk Factors

Legal issue with land purchase.
Uncertainty in advance recovery.
Reliance on other auditors.
Impact of new labor codes.

Key Drivers

Significant pipe mill capacity expansion.
New 30 MW captive power plant.
Strong revenue and profit growth.
Positive cash flow from operations.

Auditor’s Report

Unmodified opinion on both standalone and consolidated financial results.
Audit of financial statements of one associate (Clean Max Opia Private Limited) reflecting a loss, with reliance on other auditors' reports.
Statement includes results for the quarter as a balancing figure between audited full-year and unaudited third-quarter figures.

Board Commentary

Mr. Bikash Agrawal appointed Additional Executive Director.
Mr. Bhavesh Khetan and Mr. Saurabh Patil re-appointed Executive Directors.
Mr. Suresh Kumar Goyal re-designated to Chairman cum Managing Director.
Mr. Shashank Goyal appointed Senior Management Personnel (Vice President- Project Management).
Legal issue related to land purchase, resulting in a provision for doubtful advance.
FIR lodged regarding land purchase due to undisclosed encumbrances.
Compliance with SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.
Monitoring of new Labour Codes for potential impact.
Approved expansion of Pipe Mill Complex and 30 MW Power Plant.
IPO proceeds utilized for prepayment of borrowings and general corporate purposes.

Corporate Governance

Board changes and re-appointments based on Nomination and Remuneration Committee recommendations.
Audit Committee and Nomination and Remuneration Committee are active.

Management Discussion & Analysis

Future Strategy

Capacity expansion in Pipe Mill Complex and Power Plant.
Focus on operational efficiency and cost optimization.

Operational Focus Areas

Strengthening product portfolio.
Improving plant operational efficiency.
Ensuring uninterrupted energy supply.

Performance Drivers

Expansion to strengthen portfolio and improve operational efficiency.
De-bottling of existing integrated facility.
Contribution to long-term growth and profitability.
Captive power generation for uninterrupted energy supply.
Power cost optimization.

Risk Control Measures

Provision for doubtful advance created for the legal issue.

Critical Risks

Legal issue concerning land purchase with undisclosed encumbrances.
Uncertainty regarding the recovery of advance for land purchase.
Potential impact of new Labour Codes (rules yet to be notified).