Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Sambhv Steel Tubes Ltd (NSE: SAMBHV) Q4 2026 Earnings Call dated May. 11, 2026
Corporate Participants:
Vikas Kumar Goyal — Managing Director,Chief Executive Officer
Analysts:
Sahil Sanghvi — Analyst
Unidentified Participant
Presentation:
Operator
Ladies and gentlemen, Good day and welcome to the Sumbav Steel Tubes Limited Q4FY26 earnings conference call hosted by Monarch Net Worth Capital Limited. As a reminder, all participant lines will be in the listen only mode. And there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference, please signal an operator by pressing Star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr.
Sahil Sanghvi from Monarch Network Capital Limited. Thank you. And over to you sir.
Sahil Sanghvi — Analyst
Thank you, Darwin. Good evening everyone and welcome to the Summer Steel Tube Limited earnings call to discuss Q4 and FY26 performance. Before we begin, we would like to remind you that today’s discussion may include certain forward looking statements which should be considered in the light of the risks and uncertainties outlined by the company. Joining us on the call today are Mr. Vikas Kumar Goel, Managing Director and CEO Ms. Anu Garg, Chief Financial Officer. Mr. Vikas Agarwal, Additional Executive Director and Mr.
Mayank Agarwal, AVP CEOs Office and Investor Relations. We would like to congratulate the whole the management, the whole team at Samba for the very impressive set of numbers. I now invite Mr. Vikas Goen to take us through the business outlook and key financial highlights. Following which we’ll open the floor for questions. Thank you. And over to you Vikas Ji.
Vikas Kumar Goyal — Managing Director,Chief Executive Officer
Thank you Sahil. Good evening everyone and thank you for joining the earnings call conference call of Sumner Steel Tubes Ltd. I hope you had the opportunity to review our financial results and investor presentation filed with stock exchanges. I will take you through the key strategic updates, operational highlights and financial performance of the company for the year and quarter ended. FY26 followed by discussion session. I am pleased to share that FY26 have been a landmark year for the Sangov with a growth of total sales volume by 37%, revenue 60%, EBITDA 79% and paired by 147%.
Our performance reflects the strength of our integrated business model, disciplined execution capabilities and the continued focus on operational efficiency and value added products. Before turning to the financial highlights let me update you on strategic initiatives and expansion progress. We continue to make steady progress on our capacity expansion plans. As communicated earlier. Our greenfield project at Keza and Qutrail 2 are progressing as scheduled. The first phase of expansion having three 60,000 ton per and stainless steel capacity remain on track for Commissioning in quarter four.
Financial year 2027 under our Brownfield expansion program we are enhancing capacities in both stainless steel CR coils and yard pipes and tubes. To strengthen our value added product portfolio, we have completed the debottle necking project of four stainless steel CR coils which will increase capacity from 58,000 ton per annum to 1,16,000 ton per annum. We are expecting to receive the consent to operate in this week. We are expanding our ERWN tubes capacity by 1,50,000 tonnes per annum through direct forming technology with an estimate CAPEX of 50 crores.
Upon completion our total ERW pipes and tubes capacity will increase to per annum. Further, we have successfully completed the public hearing of our proposed 30 megawatt captive power plant at Sorora which has an estimated capex of 150 crores. This project is expected to make the Sorora unit self sufficient in power requirements and improve overall operating efficiencies Strengthen our stainless steel strategy Further, we have signed MoU with the Ministry of Steel under the PLI Scheme 1.2 for Stainless Steel CR Coil for the manufacturing of thinner gauges coil catering to higher value applications.
We are also pleased to share that we have executed six additional MU’s under the CO branding for stainless steel pipe manufacturing with this additional a total of 10 MU’s are now live under this initiative. Further discussion with several other partners are also well placed in progress. Coming to yearly operational performance Our product mix continues to evolve towards higher margin highway value added offering in line with our long term strategy vision. Sales volume reached all time high of 3.96,000 ton registering growth of 37%.
Value added product volumes increased to 3.56,000 ton marking growth of 51%. EBITDA per ton was 7,500 rupees including sponge excluding sponge island sale now moving to yearly performance increased by 60% to 2,413 crores. EBITDA increased by 79% to 276 crores with EBITDA margin remain over 11%. PAT more than doubled to 140 to 143 crores while PAT margin improved to improve from 3.8% to 6% delivered ROCE of 16%. Despite continuous capex our cash conversion cycle remained stable at 17 days. Coming to the quarterly performance, the quarter marked our highest ever revenue EBITDA and past performance.
Despite the war related crisis, revenue increased by 38% to 635 crores. EBITDA grew by 91% to 92 crores. EBITDA patterns stood at 9,500 excluding phone line sales paid more than double to 56 crores. EBITDA margin improved significantly to 13% and PAD margin improved to 8%. Looking ahead, we remain confident about about our long term growth opportunities for the company. Our ongoing expansion projects, increasing market penetration, strong dealer relationship strategy, focus on value added product position as well to capitalize on the growing opportunity in India’s steel pipes, tubes and stainless steel sector.
With our strategic manufacturing, manufacturing setup, captive power initiatives, expanding distribution network and experienced management team we believe Sambhav is well positioned to deliver sustainable growth and create long term value for all stakeholders. As we always say. Thank you once again for joining us today. We will now open the floor for question and answer.
Questions and Answers:
Operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the Touchstone telephone. If you wish to remove yourself from the question queue you may Press Star and 2. Participants are requested to please use handsets while asking a question. Ladies and gentlemen, we will now wait for a moment while the question queue assembles. Our first question comes from the line of Meeraj from Samiksha Capital. Please go ahead.
Unidentified Participant
Thanks a lot and congratulations to the entire team for a wonderful set of results. Sir, I have a question regarding the Capex plan that we have now. So on the last call we had we discussed that the Capex total Capex figure was of approximately 930 crores. This may say apnea 200 crores to already cut the other and in this this quarter you’ve announced another 200 crores worth of capex. Now in the balance sheet you have hundred crores worth of non current investments and if I just look at the current year’s OCF also you’re doing at least 200 crores of OCF.
So if you can just break down. My first part is if you can just break down the current total Capex plan and how much of it is already completed and how much of that Capex plan will be debt funded and how much will be internal accrual funded. That’s my first question. Thank you Mirage. I would like to explain this way the Capex that we have announced of 930 crore in the last quarter in the last call we have spent on 200 crore which is now increased to 300 crore rupees. So balance cost to be incurred is approximately 630 crore rupees.
We have to take around. We have a plan to take around 675 crore rupees of thumb load for the Keza Capex. So further Capex will be done from the debt itself. Additional capex that we have announced this quarter is around 200 crore rupees. Both are more or less debottle making and operational efficiency Capex power plant will give me power cost saving of around 60 to 70 crore rupees. And through debottle making of our existing rolling mill in Sarora we will have additional capacity debottle leaking of around one 50,000 ton per annum.
So with 50 crore of investment in my pipe mill through DFT road I will be unlocking a value operating value of around 40 to 50 crore rupees. So my this 200 crore rupees will give me an operating boost of around 100 to 120 crore rupees. These 200 crore we have planned to do investment through internal accrual and certain amount of debt. At maximum we will be taking 150 crore of debt and balance will be through our internal accrual. So this is the two CapEx that we have announced and this is the debt and equity metrics of this two capex currently.
Perfect. Understood. So sir, now we have. We have two different captive power plants. So after the installation of both of these plants how much of our power would be captive in Sora plant? With this 30 megawatt power plant we will be hundred percent self sufficient in case the we are doing 25 megawatt of power power plant installation which will have self sufficient for phase one of my rolling wheel, phase one of my kesda unit Good cell. We still have to import certain amount of electricity from the grid but going forward we have planned for that to integrate with our power plant system.
Understood. Okay great. And so my last question. So we’ve set up a target that in the next four or five years we want to reach 2 million tons of finished steel capacity. So just wanted to understand your thought process and your internal discussions on how do you plan to maintain certain debt to EBITDA level targets or restrictions or you know when would you decide that you you might need some further equity days or anything on the debt prudence that you guys have thought of. So our main purpose of IPO that we have brought is to go financial prudent and reduce our debt.
So management as a whole are very prudent on raising debt Capital or debt fuel growth is where we are very much skeptical about. So forward we have certain internal metrics upon which we will be raising debt. Let’s say we are long term debt will not be more than 1.5 times of our net worth and or or my forward EBITDA should. My long term debt should be 1.5 times of my forward EBITDA. So this is the two metrics upon which we are operating. First, secondly, in terms of. In terms of future growth planning of 22 million ton of finished product we have a bifurcation of let’s say 10%.
Let’s say 10 million ton of Ms. Pipe and tubes. Sorry. 10 lakh ton of Ms. Pipes and tubes. 3 lakh ton of coated product and approximately 7 lakh ton of stainless steel coil. So this is the composition of our product mix for 2 million ton of 2030 install capacities that we plan to achieve. Understood sir. Got it. Thank you a lot. We will have 10 to 12% of Ms. Coil or pipe market and 10 to 12% of stainless steel flat product or coil market in 2030. So that is what we aspire to achieve. That’s great sir.
Thank you so much for the detailed answer and I. We hope to see more detailing on the CAPEX plan we’ll discuss in the coming quarters. Thank you so much. Thank you.
Operator
Thank you. Participants, to ask a question you may press star and 1. Our next question is from the line of vineet Thakur from Plus 91 Asset Management Company. Please go ahead.
Unidentified Participant
I said congratulations on great results. So I would like to know what is the CAPEX schedule for next three years as we are reaching for the phase two and phase three as well. Phase one will be complete by FY27. End of FY27 and then when we are planning to announce phase two and phase three. Thank you Vineet. So as we said we wanted to achieve around 2 million ton of finished good product. Along with that we want to add 2 to 3 new product line in our product portfolio. So current CAPEX figure as a whole is very difficult to quote currently because phase two and phase three of Keshda the product composition is yet to be defined.
So in coming quarters we will be giving you the exact CAPEX figure once page one is operationalized and certain products get announced in near future. So could you give me the CAPEX figure for next two years? What would be the consolid CAPEX figure for as of two years without the phase two and phase three expansion. Hello. Hello. Currently we have announced around 934 phase 1 of Keshda 200 crore for internal operational efficiency I.e. Power plant of 30 megawatt and 1 lakh 50,000 ton of DFT line meal.
And we believe in by another like by FY28 we will have another 300 to 400 crore of additional capex that we may announce Depends on the this particular announced capex execution and timeline and sir we saw. We saw. We’ve seen a. We’ve seen a good EBITDA Burton this year especially Q4 could it have been a sustainable EBITDA buttons going forward? And could you explain why the EBITDA button was peaked this quarter?
Vikas Kumar Goyal
This quarter is more than our expectations but if the market going on this way like the HR coil prices as of now it’s depend on the HR coil prices and the raw material prices but we still believe 7500 to 8,000 rupees for the Q1 is very expected
Unidentified Participant
So could you explain why the EBITDA by then was quite high this year this quarter for us like what was the factor affecting us?
Vikas Kumar Goyal
This is a iron ore and coal. May prices Although December May Joe abundance consumption may convert who I extra capacity. So going forward. Values. Going forward.
Unidentified Participant
FY27 we can expect EBITDA in the range of 7 to 8,000 on an average side if the market situation continues to be like this and a growth volume growth visa vis 26 is around 10 to 15% what we are expecting okay sir and so could you give me a breakup of the realizations for each of the products that you have or we still are calculating it if you do have the numbers. So currently see our system doesn’t allow us to calculate because you’re fully integrated in all the departments and all the plants are interlinked so currently the transfer pricing and all these not happening the way it should have been happening because so the bifurcation in terms of EBITDA per return on the product basis will be difficult but in terms of realization I would say for Q4 2026 black Ms.
Pipe we have achieved around 55 to 60,000 depends on the product and size GPU we have achieved pricing of around 65 to 75,000 depends on again pricing product and the size range SS200 series range we have achieved a pricing of around 120 to 135 per ton 145 lakh per ton and for SS300 series we have achieved a pricing of around 182 realization of around 180 to 190 lakh per ton okay great. Current current price so if you see the current quarter price of black pipe is in the range of 57-60hp is around 675 currently hovering around and SS is around 135 and SS 200300 so your SS 200 is 135 and SS 300 is around 200 210.
So that is the current price or realization going on in the market. If you can give me individual production volumes of the product if it’s possible. If not for Q4. So I think you can take a reference from there. So one last question. What would be the peak utilization of Ms. SSGP and ERWGI pipes? Like what will be the peak utilization after debottle lacking up is gone through and the new capacity comes. So in SS segment we are going to achieve around 60 to 65% of the utilization. Because we have announced we are about to receive a consent to update for our brownfield expansion by this weekend.
So that will have with that capacity expanded, we will have 60 to 65% of capacity utilization for Ms. Pipe and call 65 to 70 Mississippi pipes and tubes. And for GP we can achieve around 80 to 90 easily. And GI Touch and Erwin. So we are not currently working on gi, we are working on GP pipes and GP pipes and tubes. So that utilization we are expecting around 80, 80 to 90% for ERW 70 approximately 7075 at max. That is the utilization that we can achieve after a DFT comes in line. Okay. Could you sir explain the DFT and the AOD process?
Like what is the beneficial aspect to it? Like if you could explain. Sorry.
Vikas Kumar Goyal
TFT is a direct forming technology, Right? Time, delivery or production capacity. Four inches and above.
Unidentified Participant
Thank you sir. Thank you so much sir.
Vikas Kumar Goyal
Thank you.
Operator
Thank you. Ladies and gentlemen, to ask a question you may press Star and one. That is Star and one. If you wish to ask questions, our next question is from the line of Mahek Talati from Agility Advisors. Please go ahead.
Unidentified Participant
Yeah. Hello sir. Thank you so much. Yeah. Sir, just two clarifications. We. We did not have any inventory gain in this quarter, correct? Yes. Okay. And sir, we mentioned that we are increasing our ERW capacity by good point. 1.5 million ton. So we would be increasing our backward HR coil nano HR capacity as well for this DFT plan, right?
Vikas Kumar Goyal
No, no. We are just improving our HR coil manufacturing facility in house. Just after that transfer to SS manufacturing facility to KEZA, we improved in instead of 6000 ton of assets, we can we can produce 10,000 of HR file in house. So we are planning to convert that material to the pipes, ERW pipes and little bit of the
Unidentified Participant
Market HR
Vikas Kumar Goyal
Coil.
Unidentified Participant
Okay, understood. And what would be a peak debt after completing all the cases? Currently the capex that is announced we are expecting a peak Long term debt of around 800 crore rupees at max and 200 to 300 crore rupees of working capital. So that is what are total debt figures that we are looking at at the peak level for the current capex that we have announced. Okay. And from Q4 on, from Q4 to current there is an increase in the utilization across all the product portfolios. So how much is the.
How much is the pass on to the ebitda? Is the similar increasing the raw material or whatever the increase in the realization will transport? Can you repeat the question because we missed certain words of your questions. So there has been an increase in the realization across Ms. DP and SS voice but by close to 2000 to 3000 rupees are done. Now can we expect this increase in the realization to be low down to EBITDA or there is a similar increase in the raw material prices as well. So you are saying what is the whatever the price increase in terms of realization whether it is being 100% pardoned to EBITDA level or not?
Not so I think 50 to 60% is actually passed on to the EBITDA level. Rest actually we either passed on through our credit note or we are through giving certain discounts to our. And. And also raw material cost also. You know like say zinc has been increased many fold and certain energy cost also increased during this wartime and also cost also being increased along with that. So pass on percentage is around 50 to 60%. Okay. So we can expect similar kind of an EBITDA around 8,000 to 8,500 in Q1. But we are.
We will give you a range of 7,500 to 8,000 currently. But if the work persists and if the market anomaly still lies there we are hoping for the best. But 7,500 to 8,000 looking at current quarter is quite achievable. Okay. Okay. Thank you. Thank you.
Operator
Thank you. Participants, to ask a question you may press Star and one that is Star and one to ask a question. Ladies and gentlemen, our next question comes from the line of Mehul Panjwani from 40 cents please go ahead.
Unidentified Participant
Hello sir. Robust numbers question as slide number 9. Slide number 9. Existing capacity post expansion capacity. Last sentence. Slide number nine. The post expansion capacity. Right? Correct. Expansion capacity 20 lakh 32 thousand. What are the. Because I’m new to the company. What are we producing right now? Just only one product. Is it? Currently we are operating in two segments. What? That is carbon steel segment and stainless steel segment. In carbon segment we have two products. One is erw pipes and tubes and secondly GP pipes and GP coils and GP pipes and in stainless steel.
We are currently manufacturing stainless steel coil of 200 and 300 series. Right? Construction and commissioning completely done. 58 will become 1 lakh 16 thousand ton from this week itself. Okay. This is our first unit, right? For a greenfield expansion. 58,000 from November 2024. We are. We are now down. We have just completed our brownfield expansion. To achieve. What are the milestones we are having. Slide number 9 already announced here. 9 lakh 30 thousand. Sorry. 930 crore stainless steel or similarly though but product composition.
So how will it impact our ebitda per turn
Vikas Kumar Goyal
The last year. Depending on the raw material price and the HR coil prices. December first week. Key to its around the prices are of HR queries 45,000. For now it is as a 56,000 rupees. So 20%. Going forward. Capacity market may or consumption. Production and consumption of HR coil is at parenthood. So. Next year.
Unidentified Participant
How are we managing? We have enough market enough demand to already capture.
Vikas Kumar Goyal
Stuck. Converted into the hollow section pipes. Hollow section in flat product. Railways May be a stainless steel. Lagna pipe and tube convert over here Metros maybe decoration. Initiative. Beheki transport co ma.
Unidentified Participant
Sorry to interrupt you to please rejoin
Operator
The question queue. If you have any further questions.
Unidentified Participant
Sir, we are totally mostly depending on our in house power requirement from our captive power plants first. Secondly we have commissioned our LPG LNG based pipeline. Our energy. We have switched our energy requirement from LPG to LNG in January 2026. So just before our work we have successfully commissioned our. We have converted our line from LPG to PNG and Chhattisgarh very few people are using PNG pipe gas. And also the city distribution is yet to be started. So as per the MoU with the gale of a gale and state of Chhattisgarh.
So the pipe the PNG supply is uninterruptly being provided to Chhattisgarh based manufacturer. So. Right. We have not impacted with the shortage of PNG or lng. So we in this world time or in the bad rest of the time our plant were up and running 24 hours.
Vikas Kumar Goyal
Like in Hamari industry domestic coals pay dependent domestic coal both abundance. So import related products.
Unidentified Participant
Okay. Okay. Thank you so much sir. Thank you.
Operator
Thank you. Ladies and gentlemen. To ask a question you may press star and one that is star and one to join the question queue. Our next question is from the line of Shashi Ranjan from Anandan Capital. Please go ahead. Thank
Unidentified Participant
You for thank you for the opportunity, sir. And congratulations to the entire team. In slide number 38. I see that the inventory has jumped up significantly to the tune of like 40%. Although we have increased the number of distributors by say 10% and the dealer by say around say 40%. So in. In spite of having these increase in dealers and distributors we see that the inventories are up by 40%. May I know the reason for that, sir?
Vikas Kumar Goyal
It is. It is with the line. In line with the revenue. 40% revenue increase. 40% stock increase last year. Finished product car work in progress. So in line with the revenue.
Unidentified Participant
Thank you sir. And again from slide number 38 I see a investment of 100 crore in the concurrent asset. Can you just throw some light on that 100 crore of investment that is there? Slide number 38, sir. Yes. So we have excess funds at the March year end. So we just have parked the excess 100 crores in the liquid fund which is highly insignificant risk involved. And since it is invested in mutual fund. So we have shown this in current investments and that converted into cash at any time. It is a non current investment if I’m not wrong.
Non current. Okay. It’s. Sorry, it’s concurrent investment. The last question. Yes, it’s current investment. The last question if I make extract is that we are completing the entire apexy Q4.7, right. So what percentage of Phi 1.2 will be able expansion that we are going to have?
Operator
Sorry to interrupt but your line is not very clear. Members of the management. I hope you have the question
Unidentified Participant
Clearly audible to us.
Operator
Okay,
Unidentified Participant
I repeat the question again. APEX will be over by Q427. And with the green expansion ending by that timeline. What how much we will be able to extract from pli. One way to which the government is offering right now. Which end. So PLI scheme that for the thin gauge cold roll coil that we have received. We can avail it till 2030 or 2031 or so. But it will be kept at around 200 crore rupees or the installed capacity tonnage production. So either of the in due condition. So let’s say 2027 Q4 we will be commissioning.
So we will have three to four finish financial year to avail this incentive from the government of India. Depend on the which thickness and which grade of steel that we are going to manufacture from the plant. Thank you very much for all the elaborate answer. Congratulations to your entire team and all the best wishes. Thank you. I’ll come back in queue.
Operator
Thank you. Participants who wish to ask questions may press star and One that is a star and one to ask a question. Our next question is from the line of Chandrash Malpani with Niveshahed. Please go ahead.
Unidentified Participant
Thank you so much sir for the opportunity or Congratulations. Good set of numbers. Picked up at an expansion. So sir, stainless side because in one of your answers you mentioned that 300 series realization has reached around 2 lakh to 2 lakh 10,000 while in Q4 it was about 180 to 190,000.
Vikas Kumar Goyal
Sarabi jesse hamdo last quarter may 10% k aspa 300 series k production line. Or utensil section. 300 and 400 ratio of the king 30 to 40% 400 series OGA. 10 20% Kia Aspa GM 300 series current.
Unidentified Participant
Okay and on the import window.
Vikas Kumar Goyal
3 months 6 months. Bathing India the last timeline. Dependent. Like nickel, chrome and copper. Or production cost. Maybe India consumption of China. Standards. In domestic market.
Unidentified Participant
Okay. Okay sir. Online.
Vikas Kumar Goyal
20,000 ton per month. So 15 say 16,000 four to 5,000 outside HR or going forward per month 30 to 35,000. 35,000. So. Five to ten thousand ton Karangam outside HR coil about the seven inches. So.
Unidentified Participant
Okay got it sir last question. There are working capital cycle maintain it very well and 1617 days even when you know look stainless steel which is a B2B business. So how do you see this days going forward when you know 60 percentage stainless steel business contribution. To 2026 with lot of efforts and improvements in our planning 2027b but 2028 stainless steel production live hoga 202825 say 30 days advance raw material market. And currently Joe coated products. So Jesse product mix change 25 to 30 days expected stabilized working cycle days.
Vikas Kumar Goyal
Okay,
Unidentified Participant
Thank you so much and all the rest.
Vikas Kumar Goyal
Thank you. Thank you.
Operator
Thank you. Participants to ask a question you may press star and one that is a star and one to ask a question. Ladies and gentlemen, our next question is from the line of Himanshu Shivare with MB investment. Please go ahead.
Unidentified Participant
Hi, good evening. My question is what is the percentage of inventory of raw material that you have that is bought on the old prices as of now.
Vikas Kumar Goyal
Actually basic raw material iron ore and coal hair. This may be both pricing. 250 rupees price increase after just one month. So work in progress.
Unidentified Participant
If you see our financials around 60% is in the form of raw material and 40% are in the form of finished gold stock intel or you can say stock towards parents. So 60% stabilized price. So there is no differentiation between old rate and new rate. Because the parity is there. There is no major gap in the pricing.
Vikas Kumar Goyal
We are calculating in the cost bas.
Unidentified Participant
Yes. Yes. Thank you sir. Thank you so much. Thank you.
Operator
Thank you. Ladies and gentlemen, you are requested to please restrict yourselves to two questions only. If you have any further questions, you may rejoin the queue. To rejoin the queue you may press Star and one. Ladies and gentlemen, that is Star and one to join the question queue. Our next question is from the line of Randir Singh with Randir Huf. Please go ahead.
Unidentified Participant
Hello.
Operator
Then you may proceed sir, you are audible.
Unidentified Participant
Thanks for the opportunity, sir. PLI 1.2 scheme but in terms of project planning and everything. Once full approval is there in our hand, we will be announcing that and there sir, before that announcement Doing announcement will not be prudent, sir. Completely depend on the approval from the government authority Sir. Once we will have all the approvals in place for start the construction work then we will be announcing the exact timeline for the production line. Sir, Same price point for same cost structure improvement PLI industry maybe Baki players we achieve let’s say mobile electronics or your high value added products manufacturers higher margin because of the pli we will also be having that benefit side.
Delay expected timeline intact as a with the God of grace which will be achieving by Q4 2027. Sir. Thank you.
Operator
Thank you. Participants, you may press Star and one to ask a question. The star and one to ask a question. Ladies and gentlemen, our next question is from the line of Avnish Kumar from Ritu Finn. Please go ahead.
Unidentified Participant
Good evening, sir. Good evening sir. First of all, congratulations on brilliant set of numbers has delivered exactly as per lines. Very good number, sir. Extremely proud to be a shareholder of some of steel sir my questions were like what kind of product lines are we planning to add in upcoming two, three years? Second, do we also have plans to add some value added materials like color coded sheets? The roofing sheets I’m talking about. And third sir, what is the difference between RSS coil and general stainless SS coil?
So you asked three questions Avnish ji first is what are the 3 or 24 products? Whatever we are talking about, what will be that? So a philosophy clear Hacky current integrated setup Current skill set in and around Capex or project supplemental or complementary? Complementary to my existing integrated setup. First, so there is no split specific to be quoted as on date in this call itself. Secondly, Chemical composition of physical properties. Rolling through or cold Rolling through stainless steel 200 or 300 full width stainless steel Ginger stainless steel produce width sizes up to around 2 meter to 2 and a half meter I believe so sizes in terms of width is much larger than what we are currently producing.
So Hamara use case if we talk about the width sense or third color coated sheet or value added product. So currently but going forward as a player significant player integrated facilities. Okay. And so just a query or what? What is the aspiration that we have in terms of revenue and net profit margin in coming 5 years product mix or different? I can’t compare you with APL Apollo because you have stainless steel also. I can’t compare you within the stainless because you have Ms. Also. So what kind of revenues and net profit margin we are looking at in next 5 years?
And what is your aspiration product line currently 10 lakh ton of Ms. Carbon steel pipes and tubes install capacity of coated sheet product capacity achieve curling it’s over 20 around 60% capacity utilization or revenue profile wise. 60 capacity utilization. Profile the kind of product mix that we have announced margin wise percentage wise Hamara business usually median margin plus minus 2% the bracket on the worst case scenario and the best case scenario operate 12 plus 2 plus minus 2% margin profile 10 net profit margin base case beer case scenario scenario net profit margin is paired that we are talking about margin profile plus minus 1% percent operating bandwidth to pass percentage of net profit margin plus minus 1% worst case scenario 4 best case scenario 6% thank you so much for the clarity and all the best for your plan Sir.
Thank you. Thank you.
Operator
Thank you. Participants, you may press Star and one to ask a question that is Star and one to join the queue. Our next question is from the line of Romul Savalia from Shamin llp. Please go ahead.
Unidentified Participant
Yeah. Hello sir. Thank you for the opportunity to ask a question on a capital allocation side. So WM of capital.
Operator
The current participant seems to have dropped from the queue. We will proceed to the next question which is from the line of Mehul Panjwani from 40 Cent. Please go ahead.
Unidentified Participant
Thank you so much for the follow up question. Expansions importance OR significant expansion 1.2 mega sorry metric MMTP 8 greenfield expansion or power Captive power plants or stainless steel bottlenecking or ERW expansion DFT. Management Every day they are just working on that line. But in terms of volume or monetary term in addition to the history of our company finished product capacity. Seriously execute. Brownfield expansion in an ongoing process on a very auto mode. But KEZA is where the maximum focus area is there, right?
By Q4 FY 2027 we will be able to commission that benefit. FY 2028 May capacity utilization. Or second phase. Sir, Second phase or third phase? Once my utilization of PH. Product mix. We will be almost doubling our capacities. Yes sir. Okay. And that. That will. We’ll see the results in first quarter of FY28. So FY28 it will not be linear capacity ramp up. It will take time. Capacity utilization for phase one of case the unit. We will be achieving the peak at Q3 Q4 Q1 28. But average out capacity utilization will be around not more than 40% for first year of commissioning.
Okay sir. Thank you so much and all the best.
Operator
Thank you. Ladies and gentlemen, you are requested to please restrict yourselves to two questions only. You may rejoin the queue if you have any further questions. You may press Star and one to join the question queue. That is Star and one. Our next question is from the line of Isha from VT Capital. Please go ahead.
Unidentified Participant
Good evening sir. I had one question regarding how are we seeing quarter one? Is it like in tandem with quarter four? Given the prices have remained strong and the demand itself is quite strong. Obviously in Q2 we would be seeing a slowdown due to monsoon. But are we really expecting that great monsoon this time which we saw last year? So our public report or El Nino publications. In the circle itself people are talking about. But last year was a phenomenally a bad year in terms of monsoon. Let’s say four to five months.
For us as a steel industry. And so what EBITDA Port. And are we expecting in Q1? Is it in line with what we saw in Q Quarter 4? Or is there any difference that we can see because of the pricing scenario change? So we would like to give you a guidance of 7,500 to 8,000 rupees per ton for Q1FY27. Okay. And so this 1 lakh 50,000 ton capacity for ERW that we have announced, when do we expect this to come online by Q4, FY27. Okay. It will start. And what would be the utilization in 28? Would it be like greater than 60, 70%?
It will be around that range only that you have quoted. Okay. Okay. That’s it. From my. Sir. Thank you sir. Thank you. Thank you.
Operator
Thank you. Participants may press Star and one to ask a question. That is Star and one to ask a question. Our next question is from the line of vineet Thakur from Plus 91 Asset Management Company. Please go ahead.
Unidentified Participant
Hi sir. Thank you for the opportunity again. Sir, I just want to know the assets value chain that we have currently. How does it work? Because I was trying to figure out we have around 58,000 tons of capacity which is going to 116 as of this weekend. But we have done, we have said a 101 lakh 69 thousand tons of sales in HR in SS. How is it? How the working sir is possible in that? I’m just trying to understand. Hello sir. So after this downfield expansion, stainless steel rated capacity will be one 18,000 ton.
But peak production 6,000 ton per month. Average last year stainless production 5500-6000 thickness material product. We can switch either or, right? Whenever we want. Want it Existing facilities and product sale. Okay. Of SS which includes slab as well. 1 lakh 69 thousand. Translate if you can give me the understanding of it. Sure. So production number includes the intermediate products as well. Let’s say 169 produce KIA SSKA slats 60,000 produce KIA into HR coils. So around 59,000 HR coil bana and then we converted into CR coil.
So if we add all three then we reach a production quantity of around 1 69,000. But again the sellable out of these three is only CR coil and hence the sale quantity is only, you can say 49,000 tons. Because the slabs and the HR coil got captively consumed, right? Correct. Yeah. So that is why you. You will see a difference between the production number and the sales number. Because at two levels we are captively consuming everything and not selling in the market. Correct. HR to CRCA ratio of conversion ratio.
HR to CRCA. HR to CRCA conversion ratio. I think around 98% recovery. So 2% would be the rolling loss. You can say. Value chain intermediate. Because we have a three step process manufacture the liquid metal of stainless convert into slabs. So this is the first step. Then slabs get converted into entire coil. This is the second process. And the third is where we do the cold rolling of HR coil. So it’s a three step process answer. Right. So Ms. May take step because before the melting we also manufacture sponge iron.
Correct sir. Add a carbon steel and in case of coated steel there is a additional process. So hr, first we do the cold rolling and then cold rolling we do the galvanizing of that CR coil and that galvanized coil is converted into pipes. Sir, correct me if I’m wrong. So galvanized, right. In GPU 5%. Because put CR coil we do convert directly into pipes also which we call it crfh pipe. So 40 45% would be going to galvanized, right? No, not 40, 40, 1995%. 1999% will go to Galvanized and then what you’ll be like on crf.
Crf. Okay, sir. Thank you so much.
Operator
Thank you, ladies and gentlemen. We will take that as a last question for today. I would now like to hand the conference over to the management for closing comments.
Vikas Kumar Goyal
Thank you everyone, for participating in this call. We hope that we have addressed all your queries satisfactorily during the session. However, if there are any remaining questions, please free to reach out our investigation at Goindia Nyadvisor. Once again, we extend our gratitude to all the participants for joining us today. We look forward to interacting with you again in the coming quarters. Thank you. Have a great day ahead.
Operator
Thank you on behalf of Monarch Net Worth Capital limited. That concludes this conference. Thank you all for joining us. You may now disconnect your lines.