Steamhouse India reported a strong Q2 FY27 with profit rising 167% to Rs 7.77 crore. Despite monsoon-related seasonal softness, the company saw a 73% jump in EBITDA, supported by higher steam sales volume and improved capacity utilization. Management reaffirmed a 25% annual volume growth target and highlighted a strong project pipeline across industrial gases and waste-to-steam facilities.
Steamhouse India Reports 167% Profit Surge in Q2 FY27
Revenue grew by 2.4% to Rs 128 crore, while PAT jumped 167.14% to Rs 7.77 crore YoY.
Reader Takeaway: Strong operational growth driven by volume increases, though investors should monitor monsoon-related seasonality and project commissioning timelines.
What just happened
Steamhouse India delivered robust growth in the second quarter of FY27, with PAT rising significantly to Rs 7.77 crore compared to Rs 2.91 crore in the year-ago period. EBITDA surged by 73.38% to Rs 24.68 crore, with margins expanding to 19.28% from 11.39%. This growth was supported by a 12.06% increase in steam sales volumes, reaching 3,01,642 tons for the quarter.
Why this matters
The results demonstrate the company's ability to drive profitability through operational efficiency, even as seasonal monsoon challenges dampened sequential performance. Management's successful reduction of the net debt-to-equity ratio to 0.16x, down from 1.57x in FY26, marks a significant improvement in the balance sheet health following the IPO.
Expansion and Projects
The company is actively broadening its footprint with several key projects. The Jhagadia facility is set for commissioning in November 2026. Furthermore, Steamhouse has secured a major EPC mandate in Himachal Pradesh worth Rs 311 crore and is exploring a Rs 500 crore infrastructure opportunity in Haryana. Investments into waste-to-steam and nitrogen plants are part of a broader strategy to diversify revenue streams.
Risks to watch
While volume growth remains strong, the business faces execution risks related to the timely ramp-up of new facilities. Waste availability remains a critical constraint for the waste-to-steam segment. Additionally, investors should remain aware of the inherent cyclicality of the industry, where seasonal weather patterns significantly impact operational efficiency and transmission losses.
What to track next
Watch for the volume ramp-up in H2 FY27, which management expects will accelerate as new capacity comes online. The successful execution of the Jhagadia project will be a key indicator of the company's ability to meet its 13.25 lakh ton volume guidance for the fiscal year.