Whalesbook
📉 The Financial Deep Dive
Hariom Pipe Industries Limited has posted strong top-line growth for the nine months ended December 2025 (9M FY26), with revenue from operations increasing by 21% year-on-year to INR 1,159.7 crores. Sales volume saw a corresponding 21% YoY jump to approximately 2.07 lakh tons. The company reported EBITDA of INR 145.5 crores for the period, with an EBITDA margin of 12.55%, and EBITDA per ton stood at a healthy ~INR 7,039. This performance was bolstered by a significant value-added product mix, contributing 96-97% to total revenue.
In the third quarter (Q3 FY26), revenue from operations climbed 21% YoY to INR 362.9 crores, up from INR 299.9 crores in Q3 FY25. The EBITDA for the quarter was INR 45.2 crores, with a margin of 12.47%. While margins remained stable around the 12.5% mark, analysis indicates a slight year-on-year compression from 13.21% in Q3 FY25 to 12.47% in Q3 FY26, suggesting potential pressure from input costs or competition. Profit Before Tax (PBT) for Q3 FY26 was INR 15.6 crores, translating to a Profit After Tax (PAT) of INR 11.6 crores. For the nine months, PBT stood at INR 62 crores and PAT at INR 45.6 crores.
🚀 Strategic Analysis & Impact
The company continues to leverage its operational strengths, with the galvanized pipes and coils segment, particularly the Telangana and Tamil Nadu units, showing steady performance. The integrated steel plant in Telangana is operating at near-optimal utilization. A key strategic shift noted is the increase in B2B sales, which have risen to 21% of revenue from 15% previously, indicating a move towards higher-margin channels.
A significant development is the progress on the 60 MW solar project by its subsidiary, Hariom Power and Energy. Land development is on schedule, with an expected commencement of operations for 35 MW capacity by April 2026 and the balance by August 2026. This renewable energy venture is projected to be near breakeven, even factoring in depreciation.
Furthermore, Hariom Pipe announced the incorporation of Metal Mart Private Limited, a new trading subsidiary where it will hold a 70% stake. This entity will trade steel and allied products not manufactured by Hariom, targeting expansion into new markets, especially North and West India, while aiming to enhance transparency and prevent margin dilution on consolidated books. Operations are slated to begin by the end of March or early April.
🚩 Risks & Outlook
Management expressed confidence in closing FY26 strongly, citing stable business conditions and healthy demand visibility. The EBITDA per ton is guided to remain between INR 7,000 to INR 8,000. For the next fiscal year (FY27), Hariom Pipe is targeting an ambitious ~30% volume growth. Q4 FY26 volumes are anticipated between 90,000 to 95,000 tons, with average realization expected around INR 54,500 to INR 55,000.
While topline growth is robust, investors should monitor the slight year-on-year operating margin compression observed in Q3 FY26 and the pressure on PAT margins. The company is also awaiting clarity on the Gadchiroli steel plant project, which is pending land allotment and environmental clearance. The successful execution of its renewable energy and trading ventures will be critical for future diversification and sustained growth.