Steamhouse India reported a strong Q1 FY27 performance with revenue up 13% and PAT jumping 80% to Rs 183.42 million. The company successfully exited its coal trading business to prioritize core steam operations and secured a major Rs 311 crore EPC project in Himachal Pradesh. Investors should watch the company's ability to execute this new pan-India project while managing a rise in gross debt.
Steamhouse India Q1 Profit Climbs 80% as EPC Order Boosts Outlook
Revenue grew to Rs 1,286 million with PAT hitting Rs 183 million in Q1 FY27.
Reader Takeaway: Margin expansion and a major EPC win drive growth, though rising debt levels warrant careful monitoring.
What just happened
Steamhouse India delivered a strong quarter ending June 30, 2026, with revenue from operations reaching Rs 1,286.21 million, a 13.35% increase year-over-year. The company’s EBITDA rose by 60.08% to Rs 309.32 million. A significant strategic shift occurred as the company officially exited its coal trading segment on April 1, 2026, to focus exclusively on its core steam business.
Why this matters
The company secured a major Rs 311 crore EPC mandate for a 300 TPH community boiler facility in Himachal Pradesh. This project, funded by Himachal Pradesh Bulk Drug Park Infrastructure Limited, marks the company’s transition from a regional player in Gujarat to a pan-India entity. Simultaneously, margins have improved substantially, with the EBITDA margin expanding to 24.05% compared to 17.03% in the same quarter last year.
Risks to watch
Gross debt has increased to Rs 3,594.81 million, up from Rs 2,816.22 million in FY26. Management has indicated these funds were borrowed for corporate purposes ahead of anticipated IPO proceeds. Additionally, executing a large-scale project outside of their home turf in Gujarat presents new operational challenges that the company must navigate to maintain this growth momentum.
What to track next
Investors should monitor the execution pace of the Himachal Pradesh project and the management's ability to maintain the targeted 30-35% EBITDA CAGR. Expansion of green boiler capacity, currently planned to reach 105 TPH in FY27, will also be a critical metric for long-term sustainability.