Venus Pipes Q2 FY26 Earnings Results

Venus Pipes & Tubes Limited is a manufacturer and exporter of stainless steel pipes and tubes. The company is manufacturing stainless steel tube products in two broad categories – seamless tubes/pipes and welded tubes/pipes under which five categories of products are manufactured namely, stainless steel high precision & heat exchanger tubes, stainless steel hydraulic & instrumentation tubes, stainless steel seamless pipes, stainless steel welded pipes and stainless steel box pipes.

 

Q2 FY26 Earnings Results

• Revenue from Operations: ₹291.54 crore, an all-time high quarterly revenue representing a 27.3% YoY growth and a 5.5% sequential growth from ₹276.41 crore in Q1 FY26.​

• Export sales surged 53% YoY to ₹115.6 crore, contributing 40% of total revenue; domestic sales grew 15% YoY.​

• EBITDA: ₹47.51 crore, up 16% YoY from ₹40.95 crore, though the EBITDA margin fell from 17.89% to 16.30% due to margin compression.​

• Profit After Tax (PAT): ₹26.10 crore, up 10% YoY from ₹23.7 crore; PAT margin at 8.95%, down from 10.33% YoY reflecting margin pressure.​

• Capacity was expanded by 1,800 MTPA, with fixed assets growing to ₹309.51 crore as capital expenditure continues.​

• Operating cash flow positive at ₹68 crore in FY25, but investing cash flow remains elevated due to expansion.​

• Debt-to-EBITDA ratio at 1.28x and net debt-to-equity at 0.28x, indicating manageable leverage with no promoter share pledging.​

 

Management Commentary & Strategic Insights

• Management emphasized strong growth in both seamless and welded pipes segments and sees continuing demand momentum driven by power sector investments and export market expansions.​

• Margin compression is a concern attributed to raw material cost escalation and the cost associated with capacity expansion, but improved product mix and pricing power are expected to gradually restore margins.​

• The company guided for a 25% revenue growth for FY26 supported by a healthy order book of around ₹490 crore and ongoing operational efficiencies.

• Management highlighted investments in value-added and critical application products which have longer approval cycles but higher margins, anticipating margin mix improvement in FY27.​

• The company continues capacity expansion and product innovation to capture growing industrial demand domestically and internationally.​​

 

 

Q1 FY26 Earnings Results

• Revenue from Operations: ₹276.4 crore, up 15.1% YoY from ₹240.1 crore in Q1 FY25, and a 7.1% sequential growth from Q4 FY25.​

• EBITDA: ₹44.9 crore, slightly lower YoY but well-supported by export growth.​

• PAT: ₹24.8 crore, down 9.8% YoY, reflecting margin pressures.​

• Export revenues jumped 69% YoY to ₹103.1 crore (37.3% of total revenue).​

• Both seamless and welded pipes segments recorded healthy YoY growth with 13% and 10% respectively.​

 

To view the company’s previous earnings and latest concall transcripts, click here  to visit the Alphastreet India news channel.