About Sambhv Steel Tubes Ltd.
Sambhv Steel Tubes Ltd (NSE: SAMBHV) is a manufacturer of steel tubes and value-added steel products, catering to a wide range of industrial and infrastructure applications. The company focuses on expanding capacity, enhancing its distribution network, launching value-added products, optimizing costs, and strengthening its brand presence.
Q3 FY26 Strategic Highlights
Sambhv achieved its highest-ever sales volume of value-added products, with strong contributions across all segments. The company executed four MOUs for stainless steel pipes under the Sambhv co-branding initiative. Installed capacity of pre-galvanised (GP) coils was doubled from 58,000 MTPA to 116,000 MTPA. Environmental clearance has been received for the Kesda plant, and project execution has begun. There was further improvement in stainless steel capacity utilization and progress in brownfield expansion.
Q3 FY26 Operational & Financial Metrics
Production volumes in Q3FY26 included 56,625 MTPA for structural pipes & tubes, 45,322 MTPA for stainless steel products, and 31,592 MTPA for GP coils & pipes. Sales volumes were 57,262 MTPA for structural pipes & tubes, 13,371 MTPA for stainless steel coils, 19,979 MTPA for GP coils & pipes, and 6,860 MTPA for intermediate products. The company reported total revenue of INR 5,891 million, EBITDA of INR 511 million, and PAT of INR 241 million for Q3FY26. Overall production volume stood around 319,074 MTPA, and total sales volume was 97,472 MTPA for the quarter.
9M FY26 at a Glance
For the nine months ended December 31, 2025, Sambhv reported significant growth in volumes, revenue and profitability, reflecting strong operational performance and expansion progress. Production volumes in 9M FY26 were 959,661 MTPA across key product lines, while total sales volume reached 288,946 MTPA, highlighting robust demand and supply capabilities. Revenue for 9M FY26 was INR 17,279 million, supported by increased sales across structural pipes & tubes, stainless steel and GP products.
The company delivered EBITDA of INR 1,874 million and PAT of INR 875 million in 9M FY26, demonstrating strong earnings momentum. Key financial ratios showed continued efficiency, with EBITDA per tonne improving and a working capital cycle of 36 days, underscoring effective cost and working capital management.
Key Milestones
In FY18 started the commencement of sponge iron manufacturing with an initial installed capacity of 60,000 MTPA. In FY19, expanded the production capacity of sponge iron to 90,000 MTPA. In FY20, commissioned 15MW power plant (6 MW WHRB + 9 MW AFBC) and commenced manufacturing of blooms / slabs with installed capacity of 120,000 MTPA. In FY22, Expanded the capacity of blooms / slabs to 150,000 MTPA and commenced manufacturing of HR coils with installed capacity of 150,000 MTPA.
In FY23, increased the capacity of Sponge iron to 105,000 MTPA, blooms/slabs to 231,000 MTPA and HR coils to 350,000 MTPA. Commenced manufacturing of ERW Pipes with installed capacity of 150,000 MTPA & increased it to 250,000 MTPA. In FY24, Increased the installed capacity for blooms/slabs to 317,000 MTPA and commenced manufacturing of GI pipe. Commissioned a 132 kVA power line. In FY25, Expanded the capacity of sponge iron to 280,000 MTPA, HR coils to 390,000 MTPA, ERW & GI Pipes to 350,000 MTPA, and the power plant to 25 MW (16 MW WHRB + 9 MW AFBC). Achieved the capability to produce stainless steel blooms/slabs & HR coils with installed capacity of 60,000 MTPA each.
Commenced Manufacturing of GP Coil and GP Pipes with installed Capacity 58,000 MTPA and 1,00,000 MTPA, respectively and SS CR Coils with an installed capacity of 58,000 MTPA. In FY 26, Successfully raised INR 440 Cr& listed on stock exchanges. GP Coil Capacity doubled from 58,000 MTPA to 1,16,000 MTPA.
Key Growth Strategies
Capacity Expansion:
The company commissioned the Kuthrel facility in FY25, focusing on high-margin products such as GP coils, GP pipes, stainless steel HRAP coils, and stainless steel CR coils. Under brownfield expansion, GP coil capacity has doubled from 58,000 MTPA to 116,000 MTPA. Expansion of stainless steel CR coil capacity from 58,000 MTPA to 116,000 MTPA is ongoing, with Consent to Establish (CTE) received.
Sambhv plans to commission a greenfield facility at Kesda, targeting 1.20 MMTPA of finished products in phases. Phase I is expected to be operational in FY27, with environmental clearance already obtained and execution underway.
Distribution Network Expansion:
The company is expanding its reach across new states while deepening penetration in existing markets to improve product availability. Distributor strength will be increased to access a larger pool of dealers, retailers, and fabricators. GP pipe supplies have commenced to address rising demand, particularly in coastal regions. Planned distributor expansion includes Kerala, Tamil Nadu, Andhra Pradesh, Goa, Maharashtra, and other states and UTs. Sambhv is also targeting international markets, leveraging its expertise in ERW GI and GP pipes and tubes.
Value-Added Products and Customization:
The company continues to develop value-added and customized products to cater to evolving customer requirements. Production of SS HRAP coils, SS CR coils, CRFH pipes, GP coils, and GP pipes commenced in FY25. These products expand Sambhv’s end-use exposure to sectors such as infrastructure, construction, telecommunications, plumbing, irrigation, firefighting systems, fencing, poles, and signage supports.
Cost Optimization Initiatives:
Enhanced machining capabilities, automation, and adherence to high quality standards are improving operational efficiency. Advanced technology adopted for GP coils and pipes enables lower zinc consumption, resulting in cost savings. The company is evaluating the establishment of a captive power plant to meet residual power needs at the Sarora and Kuthrel plants, reducing reliance on external power sources.
Brand Building and Market Engagement:
Sambhv continues to invest in branding through electronic media, outdoor advertising, digital platforms, and print media to enhance visibility. The company conducts personalized outreach programs, including informal interactions such as “Chai Pe Charcha” with fabricators and retailers. Regular formal meetings are held with distributors, dealers, and retailers. Active participation in domestic and international trade fairs and exhibitions supports customer engagement and market intelligence gathering.