Hariom Pipe Industries Ltd (NSE: HARIOMPIPE) Q1 2026 Earnings Call dated Aug. 11, 2025
Corporate Participants:
Unidentified Speaker
Rupesh Kumar Gupta — Managing Director
Amitabha Bhattacharya — Chief Financial Officer
Soumen Bose — Non-Executive Director
Analysts:
Unidentified Participant
Agastya Dave — Analyst
Maitri Shah — Analyst
Aadesh Gosalia — Analyst
Radha Agarwal — Analyst
Presentation:
Unidentified Speaker
Ladies and gentlemen, on behalf of Captify Consulting Investor Relations team I welcome you all to the Q1FY26 post earnings conference call of Hariyom Pipe Industries Limited. Today on the call from the management team we have with us Mr. Rupesh Kumar Gupta, Managing Director. Today we are also Happy to welcome Mr. Soumein Bose, non Executive Director who was the former Managing Director of Tata Thailand. And he joined the board of Hariyom pipe Industries on June 10th, 2022 as an independent director and was re designated as non executive director on 4th of January 2024. He currently serves as a representative of HPIL’s Thailand Foreign Office. We also have Mr. Amitabh Bhattacharya, chief financial officer and Ms. Rekha Singh, company Secretary.
As a disclaimer I would like to inform all of you that this call may contain forward looking statements which may involve risk and uncertainties. Also a reminder that this call is being recorded.
I would now request the management to brief us about the business and performance highlights for the quarter ended June 2025. The growth plan and vision for the coming year post which we will open the floor for Q A. Over to the management team.
Rupesh Kumar Gupta — Managing Director
Good afternoon everyone. I’m Rupesh Kumar Gupta, Managing Director of Harem Pipe Industries Limited. I thank you all for joining this Q1 FY26 earning call of Harem Pipe Industries. I am pleased to present to you the financial and operational performance for the first quarter of the financial year 2526. It is my pleasure to share that we have started the year on a very strong note both in terms of operational performance and strategic progress. That reflects both the strength of our business model and the disciplined execution of our strategy. At the start of FY26 we had set a clear growth outlook aiming for around 30% year on year volume expansion.
And I’m happy to share that we have met and even exceeded the target in Q1. Our sales volumes stood at 78,221 metric trend reflecting a 35% growth compared to Q1 FY25 and a 5% sequential increase. This performance demonstrates the resilience of our demand based across multiple sectors and the efficiency of our operations across our integrated manufacturing units. Our average selling price improved to 58,931 per metric ton a 9% sequential increase which helped cushion the impact of input cost fluctuation. This improvement is the result of a healthy product mix, strong value added product sales and our ability to command better pricing through quality and customer trust.
Revenue from operations came in at 460.96 crore, registering a 34% growth over Q1FY25 and a 15% increase over the previous quarter. Our strategic focus on value added products continued to yield results with this product contributing 98% of our revenues in line with our consistent product mix category. On the profitability front, EBITDA excluding other income was 57.58 crore showing 29% year on year growth and 18% sequential growth with EBITA margins maintained at a healthy 12.49%. This reflects our continued emphasis on operational efficiency, prudent cost management and the benefits of our backward integration. Operations pack stood at 23.61 crore, up 35% year on year and 37% sequentially with PAT margins improving to 5.11.
EPS for the quarter rose to 7.63 rupees, reinforcing our commitment to value creations for shareholders. Strategically, we have made strong progress on innovation and market development. We have developed new products and strengthened relationships with original equipment manufacturers, especially in the fast growing renewable energy sector. A notable highlight has been our transition in solar structure manufacturing, moving away from conventional HR steel channels with cost intensive hot dip galvanizing to high strength pre galvanized tubular sections. This shift not only reduces steel weight but also enhances durability and efficiency, breaking traditional design limitation and enabling our customers to achieve better cost effectiveness in their projects.
As we look ahead, we anticipate a significant boom in solar and renewable energy infrastructure both in India and globally. Our innovation products position us to play a pivotal role in supporting this growth, contributing to reduced carbon footprints and improving the sustainability and viability of solar projects. In summary, Q1’s strong performance reaffirms our confidence in meeting our FY26 targets and sustaining our momentum. We will continue to focus on volume growth, margin stability, operational efficiency and innovation, ensuring that Harum Pipes remains well positioned to deliver sustained value to all stakeholders.
With that, I look forward to addressing your questions and sharing further details on our outlook for the year ahead. Thank you.
Questions and Answers:
operator
Thank you sir. We’ll start the question and answer session. Participants who wish to ask a question, please use the option of raise hand. We’ll take the first question from Agastya Dawe. Please go ahead.
Agastya Dave
Am I audible? Yes Good afternoon everyone. Thank you very much for the Opportunity and congratulations on very good performance. So I had some very small questions. So I’ll go through them very quickly. First is given the kind of volume jump that you have seen this year, sorry, this quarter, what’s the state of the inventory in the system? And let me define system as the inventory that all your customers are carrying plus any of the dealers. What’s the total inventory? And do you see this 30%, this 35% run rate continue for some time? Hello.
Rupesh Kumar Gupta
Yes, we see that 30% of growth rate to be continued.
Agastya Dave
So broadly last year same quarter say or sequentially channel my inventory buddy. Hair. Same hair. Yeah, yeah. I’m not looking at a specific number, sir. Just qualitative commentary.
Amitabha Bhattacharya
Yeah. So basically this quarter we are not disclose the balance sheet as per the guidelines. So take already you have the last quarter Q4 numbers. I think 128 days. We are holding days we have now roughly we are having 89 days. This improvement is largely due to the better procurement planning, faster conversion of raw materials into finished goods and improved sales volatility.
Agastya Dave
So my question was different. My question was in the. In the sales channel that you are selling your products, are your customers increasing their inventory? Not your inventory, sir, their inventory. Are they. Are they increasing their stocks? Are they. Are your dealers increasing their stocks? Because the steel prices were falling last year, they have started stabilizing. So I’m just wondering if there is again they’re. They’re increasing their. Their stocks of. Of inventory.
Rupesh Kumar Gupta
Demand and supply.
Agastya Dave
Okay, Excellent. Second question is again. Sir. Because raw material prices fluctuations or prices be stabilized gross margins, gross margin per ton basis pay and EBITDA per turn basis payable reverse. But gross margin.
Rupesh Kumar Gupta
Performance.
Agastya Dave
I think 18 months.
Rupesh Kumar Gupta
2.96. Okay. Within the time.
Agastya Dave
Expected PLF Kitna tracker based fixed solar modules. Okay, sir. And so final question. Sir, opening remarks solar structures enter current.
Rupesh Kumar Gupta
Engineering and everything complete ready to use 100 satisfy karangay to customer customer kesatna.
Agastya Dave
So 35% volume growth contribution would be negligible, right? Perfect, sir. All the way, sir. Excellent quarter and best of luck for the remaining years, sir. Thank you.
Amitabha Bhattacharya
Thank you. Thank you.
operator
Thank you. Agastya. I would request participants to limit their questions to two per participants. We’ll take the next question from Smith Gala. Please go ahead.
Unidentified Participant
Good. Congratulations on the good set of numbers. Last participant questions. That is a new normal.
Amitabha Bhattacharya
Actually the gross margin is always depend on the raw material versus your sales last year, last quarter, whatever. We have witnessed that 9% sales realizations and raw material price are remain same. There will Be no further fluctuation. Mainly the you have to understand that key. Why the gross margin can be increased. Or what are the possibility that is always depend on the product mix consistency, backward integration and operational efficiency. So presently we are already 98% of our sales coming from the value added products. And our margin are less dependent on lost steel price shrinks.
Unidentified Participant
Okay. Okay. That was helpful. Second question was. We have already started our sales to Maharashtra. So if. If you have the number handy. What are the percentage of sales which are coming from Maharashtra in volume terms? And also we had released a notification that one of our plants in Mahbubnagar will be having a planned maintenance shutdown for 10 days in quarter two. So what will be the impact of those on quarter two numbers? Okay. Or Maharashtra sales.
Amitabha Bhattacharya
State specific. We’ll update you separately. You just put the mail. We’ll confirm.
Unidentified Participant
Okay. And one last question. If I can chip in now in the new power plant Insights planning after the last con call revenue funding.
Amitabha Bhattacharya
Sir, already the ppa. Just the last question. Our indisar already addressed that. Keep that PPA was signed and it is in public domain. We have signed with PPA for supplying of 60 megawatt solar power for 25 years to MECPCA at a price per unit 2 rupees 96 paisa. The deadline of the completion of the project will be 2nd September 2026. And after completion first three years we are getting additional 0.25 paisa as an incentive per unit.
Apart from that as per the PM Kusum scheme we are getting the equity subsidy during the construction period. So these are the scenarios we have. And moreover thing is out of the total project we have already finalized near our 115 acres of land which is consistent able to supply that 32 megawatt of solar power can be able to generate. And out of 413 location we have already finalized eight locations. These are the present status of this project.
Unidentified Participant
Okay. And one last question please. Please.
operator
If you can rejoin the queue please. Okay. Yeah. We’ll take the next question from Raman kv. Please go ahead.
Unidentified Participant
Hello sir. Thank you for allowing me to ask the question. I just want to understand what’s our volume growth guidance for the year? And what’s. What was our EBITDA per turn during the quarter?
Amitabha Bhattacharya
Sorry sir, can you repeat once?
Unidentified Participant
What is the volume growth guidance for the year? And what is the. What was the EBITDA per turn for Q1 FY26?
Amitabha Bhattacharya
Okay. So volume growth already we have given. Sir, year on year 30% volume growth in our last call in Q4. And. The EBITDA Parton per metric turn. Blended EBITDA per metric turn as of first quarter 2026. 7362.
Unidentified Participant
Thank you, sir.
operator
Thank you. Raman, we’ll take the next question from Sagar Shah. Please go ahead. Yes, Sagar. We’ll move on to the next participant. We’ll take the question from Yash Sina. Please go ahead.
Unidentified Participant
Yeah. Hi. Congratulations on a good set of numbers. I just wanted to understand your volume and revenue split by product. Similar to how you’ve given on page 18 of your PowerPoint.
Rupesh Kumar Gupta
So the presentation. Yeah, yeah. We’ll give. So product product. Volume wise we are having. Sir, Ms. Tubes and sc folding. Hello. Hello.
Amitabha Bhattacharya
Yes sir. Ms. Tubes and scaffolding product. We had done 25,196 metric tons. Sold out organized product. Togetherly we are having almost all 52, 53,000 and other steel product like sponge, iron and other. That is coming around 501. Total volume is sold out 78,221.
Unidentified Participant
Got. Got it? Yeah. And is key against realizations.
Amitabha Bhattacharya
Sir, that realization is turnover. We have achieved. Turnover is for Ms. Tubes and scaffolding around 126.51 crores. And this is togetherly around 333.11 crores. Galvanized products and remaining for other state products.
Unidentified Participant
Got it. And sir, is financial year additional CAPEX plan? Other than that power project.
Rupesh Kumar Gupta
No. No operational capex. Apart from that our keen interest to sweating up the existing assets.
Unidentified Participant
Last question. Sir. Ugly two to three years expansion plan.
Rupesh Kumar Gupta
Opportunity. 100% expansion. No second thought.
Unidentified Participant
Thank you. And all the best for the year.
Rupesh Kumar Gupta
Yes, sir. Thank you.
operator
Thank you. We’ll take the next question from Radha Agarwal. Please go ahead.
Unidentified Participant
Sir. Thank you for the opportunity and congratulations on good results. Sir, about six to nine months back your cost of production for billets was about 37,000 per metric ton. Versus the market rate at that time was 42,000 per metric ton. So the EBITDA per metatron at a billet level used to be 5,000. And then 3,000 additional from billet to Ms. Tube conversion. So I wanted to understand how the scenario is currently so comparatively in this scenario the market price of billet has come down to 37,000. So. So at these prices what is your cost of production of billets And.
And the EBITA per ton at the billet and the Ms. Tube level? Yes sir, but. Yes sir, but my question was. What I wanted to understand is. Since you are backward integrated yeah. The EBITDA per metric turn for you will be significantly higher compared to a non backward integrated secondary steel pipe manufacturer manufacturer. So if you can tell me the EBITDA per metric ton at the billet level then I’ll be able to understand how is it for the industry who are non backward integrated as well.
Amitabha Bhattacharya
Basically sir madam, to be honest calculation that’s depend on if during the quarter if we we had done any sort of billet sale K then only you can calculate overall Hamada up to Ms. Tubes. I can say key up to Ms. Tubes through integrated process we are getting this quarter specifically 8,200 plus PER.
Unidentified Participant
And sir, how much would it be as per your understanding for non backer integrated players?
Amitabha Bhattacharya
That is. That is not my talk about we are integrated player. We can say up to our. So as of now Ms. Tubes level 8200/integrated process we are getting for this quarter.
Unidentified Participant
Okay. Okay. Yes. So secondly out of the 4.5 million ton market of the secondary pipes in India roughly what percentage of players would have backward integration like you.
Amitabha Bhattacharya
That also that market research team can be given the better answers. We are not we can say about Hariyandima.
Unidentified Participant
Okay sir.
operator
Radha, I will request you to rejoin the queue please.
Unidentified Participant
Yeah sure.
operator
We’ll take the question from Sagar Shah. Sagar Shah please go ahead. Sagar. You’re not audible Sagar. We’ll move on to Ajit Sethi. Please go ahead.
Unidentified Participant
Thanks for the opportunity sir. What is our current net debt level?
Amitabha Bhattacharya
Current net debt level?
Unidentified Participant
Yes.
Amitabha Bhattacharya
Just template. Sir, I’ll give you total borrowing is 363.70 as of 30h.
Unidentified Participant
Okay. So going forward any plans of repaying a debt? Yeah. As we are not. Yeah.
Amitabha Bhattacharya
Yes. Yes.
Unidentified Participant
Okay.
Amitabha Bhattacharya
So basically the long term debt we are having already the repayment schedule. So next coming two years the long term date will become negligible. Having substantial cash flow where Hariyam is in a good position. And you can see the financial metrics also very positively in terms of debt negative to EBITDA.
Unidentified Participant
Okay sir, as in Q1 we have done a better around 7300. So going forward this beta pattern is sustainable.
Amitabha Bhattacharya
Yes. Yes. 100%.
Unidentified Participant
Okay. And my last question is as we are backward integrated from Ms. Tube sites and non backward integrated from galvanized side. So going for what kind of realization is sustainable?
Amitabha Bhattacharya
Sir, it’s always just a few minutes back only I have given that answers. It’s a product mix category. So now our 90 sales are coming product mix category on a value added product in that Terms you can realize always better where because the customers is given for the quality and consistent delivery basis not as a retail product where the you are getting the cheaper you are always struggling with the get a better rate because of heavy competition. Now Hariyam is always providing such kind of products where the customers is given the fixed customers are there their volume is fixed and given a good price because of quality and consistent delivery. So the realization part also har will be in a better position in the.
Unidentified Participant
Coming future Also so this Q1 realization what we have done this could be sustainable right? Yeah.
Amitabha Bhattacharya
Yeah.
Unidentified Participant
Okay sir thank you sir thank you.
operator
Ait we’ll take the next question from Harsha Please go ahead
Unidentified Participant
Good afternoon sir so you have shown a very strong volume growth in this quarter so just wanted to understand which are the end user industries you know that is contributing to such a solid growth from you and what exactly helped you during this quarter to achieve this kind of a growth? Because if you look at overall market scenario it’s pretty tepid. The outlook is not that good in such a scenario you growing at 30% so what exactly is helping you achieve this growth?
Rupesh Kumar Gupta
Thank you but still we are not focusing only on one particular product Financial support, customer footprints or customer engagement plus new customers from OEM sector from other sectors valuation create company.
Unidentified Participant
Okay and sir OEM sales.
Rupesh Kumar Gupta
I don’t think.
Unidentified Participant
Okay and sir for Ms. And galvanized dono segment car EBITDA would be in line with what you have guided historically around 6,600 and 8,600.
Amitabha Bhattacharya
Char and galvanized product by around 7,200 plus K so,000 rupees because integrated process.
Unidentified Participant
Okay. Okay and sir solar may just as one last question Sir Solar may last call May yet mentioned that the capex will be somewhere between 180 to 240 crore now since you are finalizing on the land acquisition so have you freezed on an amount?
Rupesh Kumar Gupta
Basically land we are not purchasing it’s on the leased model of 29 years 28 years though land candle it’s only the rent what we are paying and.
Amitabha Bhattacharya
Investment sir actually the TV report is under process and you can say whatever we have given the lower side will be happening higher side you are telling the 240 crores it is within the below of 240 crores understood?
Unidentified Participant
Understood Got it thank you thank you so much sir
operator
thank you Harsh we’ll take the next question from Vedant Sarda Please go ahead.
Unidentified Participant
Thank you for the. Opportunity Sir I want to ask you in the presentation I can see there is 15 direct B2B sales. So 85% from where it is coming. I think there’s some disturbance at your end. Hello. Are you audible? Yes. I wanted to ask you that in the presentation I can see there is 15 direct B2B sales. So this is OEM sales directly without distributors and dealers.
Rupesh Kumar Gupta
Yes. Yes.
Unidentified Participant
Okay. And sir, can you tell me who is our direct competitor.
Rupesh Kumar Gupta
Basically? Direct or indirect competitor.
Unidentified Participant
Okay.
Amitabha Bhattacharya
That our customers can give you the better answers. Because we know the customers. We send our quotations and we send our quality guidelines and payment terms.
Rupesh Kumar Gupta
There is some some benefit now.
Unidentified Participant
Okay, so last question. Can you please tell our capacity utilization rate of this quarter?
Amitabha Bhattacharya
Capacity utilization rate. So basically this quarter our net Production capacity was 72,000.
Unidentified Participant
72,000 production.
Amitabha Bhattacharya
72,000 metric ton per net productions. So that you have to calculate from 437.
Unidentified Participant
Okay.
Amitabha Bhattacharya
So it’s almost on 40%.
Unidentified Participant
40%.
Amitabha Bhattacharya
No. One minute. Just a minute. 66%. 66%.
Unidentified Participant
Okay, sir. Thank you.
operator
Thank you. Vidan. We’ll take the next question from Raghav. Please go ahead.
Unidentified Participant
Good afternoon. Thank you for taking my question. I would like to ask that the EBITDA from the last quarter and this. Quarter had jumped from 6,500 to 7,400. What was the main reason for the avatar increase?
Amitabha Bhattacharya
Sorry sir, can you repeat once because the sound is not so clear.
Unidentified Participant
The data has grown from 6,400 rupees per done to 7,400. What is the main reason for this increase in EBITDA?
Amitabha Bhattacharya
So that is the only already in our opening speech also 9%. Our selling price is also bro. And remaining all the operational expenditure are consistent and very much controlled manner. So therefore this EBITDA per turn going up.
Unidentified Participant
Okay. Okay. And may I know what are the. Current data days and the exact capacity. That we will have by FY26 and FY27. And what can be our utilization?
Amitabha Bhattacharya
I’m not getting a point. Can you repeat one. Because.
Unidentified Participant
What are the current data days and the exact capacity that we will. Have by FY26N and FY27. And what can be the utilization numbers?
Amitabha Bhattacharya
So already we have given clarity in Q4 itself. This year we are expecting around 30 volume growth. So accordingly. And CAGR also 30 to 35% growth respectively in coming two years. So accordingly presently we are having 4. 37,000 our final output. Accordingly it will be grow.
Unidentified Participant
Thank you.
operator
Thank you. Raghav. We’ll take the next question from Maitrisha. Please go ahead.
Maitri Shah
Hello. Am I audible? Yes. Yeah. Just one question on the Solar structure. So currently we have started with the trial production. What sort of. Hello. Yeah, yeah, yeah. What sort of volumes do we expect from solar structures in FY26 and then in FY27?
Rupesh Kumar Gupta
So initially we have gotten good order wherein we are engaging our bandwidth and the manufacturing capacities to get enhanced. So the trial orders are already received by 200 tons approximately per month. Moving ahead this may multiply in coming months.
Maitri Shah
And what sort of EBITDA are we earning on this product right now?
Rupesh Kumar Gupta
I don’t think readily it’s available with us but we are. We are very much higher than the scaffolding as well as the pipe.
Amitabha Bhattacharya
Definitely division.
Rupesh Kumar Gupta
It’S a trial runs are going on. Right. So that ABA calculation would not be readily available handing. So if you need specific you can mail us across. We’ll share you that.
Maitri Shah
Okay. So 200 runs per month is the trial order for FY26. Is that correct?
Rupesh Kumar Gupta
Yeah. Yeah.
Maitri Shah
Okay. And any new trial orders that we have received this quarter.
Rupesh Kumar Gupta
One, one continuously party we are just applying it and future will be adding on new parties also.
Maitri Shah
Okay. Yeah. That is it from my side. Thank you.
Amitabha Bhattacharya
Thank you.
operator
Thank you. Maitri. We’ll take the next question from Adesh Gosalia. Please go ahead.
Aadesh Gosalia
Am I audible?
operator
Yes.
Aadesh Gosalia
Yeah. Thank you so much for the opportunity and congratulations for a very good set of numbers. So I had a couple of questions. The first question was regarding our B2B business. So if you can share some light on that at what is the percentage of revenue from from B2B and how are we planning to go about increasing our share from that business? And if any new contract have we signed with the OEMs in the in this quarter or any talks are going on with the regard regarding the same.
Amitabha Bhattacharya
The B2B roughly you can say. So. It’S around 74.5crores plus we this quarter out of the total turnover 460.96.
Aadesh Gosalia
Okay.
Amitabha Bhattacharya
And we are expecting more in the coming future also because slowly and gradually it will increase because for any B2B sales directly OEM basically the the some standard procedure we have to follow that first we have to send the samples then the testing approval. Then the long term our infrastructure and their demand and supply range. And after that the last is pricing. So all those happen it will take some more time. Once the customers is finalized then consistently it will be delivered on a monthly basis.
Rupesh Kumar Gupta
So the satisfied and continuous business demand overall infrastructure developer his development they are really happy to continue the businesses. So moving ahead we may enter into the engineering segment as well.
Aadesh Gosalia
Okay, okay.
Rupesh Kumar Gupta
That’s the profitability and the margins higher basically up the line of activity. Profitability could be focused. That’s the reason we every time focus on value added products.
Aadesh Gosalia
Right that. Right. That’s great to hear. And on the. So basically no new OEM contracts have been signed. Right? If I understand we are in talks right now but no new contract has been signed right now.
Rupesh Kumar Gupta
Then it is under process every month on month basis something other is getting added.
Aadesh Gosalia
Okay. Okay. Okay. Makes sense. Yeah. And so and any challenges that we are facing in this B2B business side that you know you would like to.
Rupesh Kumar Gupta
Point out actually the long term consistency or quality. So B2B is more fruitful than the regular detail and detail dealers model. But dealer model could be continue and B2B continue it is again onto the demand and supply game.
Aadesh Gosalia
Okay. Okay. And my second question was into one of the previous participant you had answered that the demand for like we have a diversified basket so we are getting demand of the products from like from different OEMs. If you can you know share something more on that.
Rupesh Kumar Gupta
So the whole criteria is to for the earnings only it’s all about money.
Aadesh Gosalia
Right? Okay. Got it. And so just one data keeping. Just one data keeping question if I.
operator
Can please please rejoin the queue please.
Aadesh Gosalia
Okay. Okay. Yeah. Thank you so much.
operator
Thank you. We’ll take the next question from Yashu Vardhan. Please go ahead.
Unidentified Participant
Okay sir, so if you can just elaborate a bit on the capital expenditure plans for you know say next two to three years and how will those be funded?
Rupesh Kumar Gupta
You’re talking about capital.
Unidentified Participant
Yeah. So fixed capital investment sir.
Amitabha Bhattacharya
So basically at present we do not have any future major expansion planning. We our first target is to sorting up our existing capacity and use the optimum level of the capacity. Whatever we have already invested and little bit of operational capex are required in that it is the common thing for as a integrated steel player or as a steel industry. This is our segmental requirement. That’s all. Nothing much more capex are required for that.
Unidentified Participant
Okay. Okay. And secondly sir, the newly incorporated REM Power in Energy Private limited if you. Can just touch upon that and how. Will it impact the profitability and you know our risk. Moving on.
Amitabha Bhattacharya
See Hari on Power Energy Private Limited that is we are presently it’s a only subsidiary company of our. The thing is it’s the free cash. The long term revenue are fixed. We have already signed the PPA with MSC DCL for 25 years supply of 60 megawatts solar power at a price of rupees 2 rupees 96 paisa per unit. Apart from that, the company will get additional 0.25 paisa per unit as an incentive for next three years if the project will be completed on or before 2 September of 2026. Additionally to that it is covered under CM Kusum Scheme Component C where the we are getting the subsidy of the equity component whatever the company will be invested during the completion of the project that payment payback period within the period of commencement of the project within the period of 18 months.
So therefore our capital outflow is also very limited and our this. The long term revenue is fixed and cash flow is also very much predictable. And the E percentage is coming near to 75% as per the financials.
Unidentified Participant
So sorry, if you can repeat that. The E level you said, right.
Amitabha Bhattacharya
75% will be coming because the once you fix it there will be no operational, major operational expenditure for generating the solar power that is very nominal.
Unidentified Participant
Understood. Okay, thank you. And. And if I. If I may add Amitava. And so basically for the shareholders of Hariwom Pipe, the benefit is twofold. In this new project, the companies will retain the economic interest in the project’s predictable 25 year old revenue stream. Point number one. Point number two. This project will also drive incremental volumes of high margin solar steel structures from our existing facilities. So which are built to Hari Home Pipe directly. Meaning the parent company captures the value at the manufacturing level irrespective of the stake in subsidiary. So it’s. It’s. It’s a. It’s a twin benefit, you know, for Hari Home Pipes and the new company.
Rupesh Kumar Gupta
Understood? Understood. Yeah. Yeah. Okay, thank you.
operator
We’ll take the next question from Smith Gala. Please go ahead.
Unidentified Participant
Thank you for the follow up. Just wanted a clarification regarding the total capacity which we have currently 4,32,000. But does this include the 84,000 from Ultra Pipes as well or it does not?
Amitabha Bhattacharya
No, no, it’s not including the ultra pipes.
Unidentified Participant
So, so 84, there’s a total 5. Around 5 lakh 10 we have then. Yeah. The capacity and what is the utilization and the volume which Ultra pipes contributes.
Amitabha Bhattacharya
Currently that is the name plate capacity. Mr. Smith, already you know that you are covering the spy segment also so many years that you know that the pipe segment, whatever the name plate capacity that cannot be going beyond 70 to 80% of this optimum level of the capacity. So 84000 you can take up to 70% or 75% of the ultra pipes maximum.
Unidentified Participant
We are utilizing the 70. 75%.
Amitabha Bhattacharya
Right now we are presently utilizing around 60%. It will be going up to 670 to 80% maximum, sir.
Unidentified Participant
Okay, thank you. That. That was the only question in fall apart. Thank you.
operator
Thank you. Smith. We’ll take the next question from Sandesh Kumar. Please go ahead. We’ll move on to Mr. Deepak Pandey. Please go ahead.
Unidentified Participant
Hi. Am I audible?
operator
Yes. Deepak.
Unidentified Participant
Sir, just two questions from my side. First is on working capital days and why is it higher versus you know the recently listed peer. And secondly on the same question what sort of EBITDA pattern can we expect for FY26?
Amitabha Bhattacharya
FY26 or you are talking about this quarter?
Unidentified Participant
FY26.
Amitabha Bhattacharya
So sir, that is FY26 in value terms we cannot predict right now as we have given the clear guidelines of 30 volume growth and whatever the first quarter performance we have that is in front of you. So you can calculate and we have already given the that we are expecting that realization part and the price margin all are will become the consistent which we are believe. So remaining part you can calculate at present our net holding days. Regarding that working capital holding days it’s around 89 days. Overall inventory holding days is 89 days as of June 2025.
Unidentified Participant
Okay. And sir, on the HR coil volume can you give the data how much HR coil did we purchase from the market this quarter?
Amitabha Bhattacharya
So it is very simple sir. Whatever our sales volume in galvanized pipe that all are produced from the HR coil only.
Unidentified Participant
Okay. And that that reasons with the you know lower EBITDA per for galvanized products.
Rupesh Kumar Gupta
That is very nominal. Because we are already supplying the value added product which is very much a requirement of OEM and solar segment and packing industry, other brief building engineering sectors and all those things where the margin is getting good comparatively to any other segment. So only thousand rupees you can say roughly there is a difference as per Q1 data.
Unidentified Participant
Got it sir. That’s it. Thank you.
operator
Thank you. Deepak. We’ll take the next question from Radha Agarwal. Please go ahead.
Radha Agarwal
Thank you again. Sir, the general perception in the market is that the secondary pipes cannot be used in high load bearing applications like infrastructure construction, airports etc. So with regards to your Ms. Tubes, what is the user industry mixer.
Rupesh Kumar Gupta
Sizes of airports and all manufacture dealers and distributors that is used for your commercial purposes playground equipment. Not onto the ignorance jo load bearing structures. It goes for your homewards items and some engineering items. Structure of sheds, poultry forms.
Radha Agarwal
Okay sir, that was helpful. So secondly the with regards to the volume guidance of 30%. So market is growing at 8%. Then from where are you getting this incremental 22% volume growth? And how much of this growth is due to the integration of ultra bytes in the business?
Rupesh Kumar Gupta
So basically across the line which we are really proud of and secondly basically it takes like six to eight months to get it registered quality parameters every month on month basis multiple sectors. It is not from one sector.
Radha Agarwal
Okay, so. So ultra pipe sales volume this year would be about 12,600 in first quarter.
Amitabha Bhattacharya
Basically unit wise we are not getting the data readily available man. But I can assure you that if you send us the mail I check and I’ll get back to you on that unit wise or segment wise data.
Radha Agarwal
Okay sir. Yeah thanks and all the best.
Amitabha Bhattacharya
Thank you.
operator
Thank you. Rather we’ll take the next question from Ajit Sethi. Please go ahead.
Unidentified Participant
Thanks for the follow up. So what is the total industrial capacity of Ms. Tubes and what is the current demand and what is the total supply? And similar with galvanized pipe also can.
Amitabha Bhattacharya
We are having MSQ’s capacity is 1 32,000 in H. That is the name plate capacity and 84,000 R. You can take ultra pipe having the nameplate capacity. We have concluded our long term lease with ultra pipe for 99 years in the month of July itself. So therefore from now onwards you can take ultra pipes capacity also under the umbrella of so roughly all together this 2 lakh 10,000. You can say in a round figure the name plate capacity of Ms. Tubes and.
Unidentified Participant
Sorry sir, so my question was related Industry capacity sir. Industry capacity of Ms. Tubes and demand for.
Amitabha Bhattacharya
Industry demand for this segment.
Unidentified Participant
Yeah, demand and capacity and what is the supply Also can you please help in this so that you can get.
Amitabha Bhattacharya
From the research report sir, industry segment wise I can give you the H capacity but roughly it may be 4.5 million tons of capacity earlier.
Rupesh Kumar Gupta
So sir if all you have the data you can just explain sir.
Soumen Bose
Yeah, yeah, yeah I have the data. So basically sir, the total Indian steel tubes and pipes the production is roughly around 14 million tons and the consumption is around 12.68 million tons. That is the Indians cubes and pipes hemisphere. Now if you. If you break the. Break it down to the typewrise consumption so roughly out of this whatever figure I just told you Mississippi tubes and pipes will be say around 60%, 61% you know of the total mix. So that is the industry standard, you know.
Rupesh Kumar Gupta
Okay, okay. And what is the supply situation in this MS.2?
Soumen Bose
The supplier universe is equally big But Then because of our differentiated product mix and all that our products are well sought after visa vis competition and you know probably our numbers would justify that as to you know how we have pushing our by diversifying our product mix. Because as you know it is just not one product. There are different thicknesses. There are so many as we call it SKUs. So there are so many skus and Hariyom has the maximum, you know variety of the thicknesses. And this is. That’s why they’re able to as our managing director pointed out we are a single stop solution. You know for most of the you know dealer level demand. That’s the reason why you know we are able to cater to the maximum possible in the marketplace.
Unidentified Participant
Okay sir, thank you.
operator
Thank you. Thank you. Ajit. We’ll take the follow up question from Vedant Sarda. Please go ahead.
Unidentified Participant
Thank you for the opportunity. Sir, my question is I can see promoter shareholding from 23, 24 and 25. It is reducing little bits. So can you give more information on that part?
Amitabha Bhattacharya
No, Promoter shareholding was not reducing for 24. I think we are done the preferential allotment with some FII and DII and other HNI at 190 crores fundraising was done in that also was taken 30 crores of participation in contributed 30 crores remaining 160 crores we had taken from the other shareholders. So after that promoter shareholder in fact.
Rupesh Kumar Gupta
It has increased.
Amitabha Bhattacharya
At the time of IPO I think 33% we had done. We have issued so from 67 to. It is coming to 57. So there was a dilution of 10% during the March 20th. After that there was no substantial downtrend.
Unidentified Participant
So this from 60 to 57 was due to preferential allotment?
Amitabha Bhattacharya
Yes.
Unidentified Participant
Okay sir. And do we have a government business directly so far?
Amitabha Bhattacharya
We do not have any government.
Rupesh Kumar Gupta
No, no, no. We don’t supply to government directly so far.
Unidentified Participant
Sir, by supplying directly to O can it affect our distributor supply chain?
Rupesh Kumar Gupta
No, no, no.
Amitabha Bhattacharya
It’s a separate product. It’s a separate product added in that particular line.
Rupesh Kumar Gupta
So we don’t think there would be any problem with that particular.
Amitabha Bhattacharya
It’s a totally product and our. We are not dealing with distribution network. We are dealing with dealers. Network dealers. Yeah.
operator
Thank you Van. We’ll take the follow up question from Adesh Kosalia. Please go ahead.
Aadesh Gosalia
Oh yeah. Thank you for the opportunity again. I just had data keeping question regarding the maintenance capex that we are going to do in the FY26.
Amitabha Bhattacharya
Sir, it is. We are Expecting whatever the previous year range was there. The similar range are there. But exact figure in numbers it is quite difficult to tell.
Rupesh Kumar Gupta
Technology we cannot say it right away.
Aadesh Gosalia
So not an exact number. If you can give like if possible. Okay.
operator
Thank you. Adish. We’ll take the next question from Sandesh Kumar. Please go ahead.
Rupesh Kumar Gupta
Hi sir.
Unidentified Participant
My question is like. We have around 7 lakh metric ton capacity. And we are given 30% volume growth for next three next two years. And separately we have around 60 megawatt solar order. Can we cover all this with our existing capacity?
Amitabha Bhattacharya
60. 60 megawatt solar is different project. It is not linked with the Haram pipe manufacturing core capacity. Okay, that’s a different project. So basically it is no, not linked with that. Now I know. Whatever the capacity we are having. Yes, you are right. Key whether we can meet the 30 growth of capacity. Yes, we can manage with that. So therefore our optimum level of capacity will become. Okay.
Unidentified Participant
Okay sir. So with respect to the solar hurdle for 1 megawatt we may require around 3 crore. So around 1180 crore required. So any fundraise on card?
Amitabha Bhattacharya
No, we are not doing any fundraising.
Agastya Dave
Okay.
Amitabha Bhattacharya
We are not doing any fundraising so far for that.
operator
Okay sir.
Unidentified Participant
So how we are managing this? For doing this 60 megawatt without any fundraiser. Because we may require.
Amitabha Bhattacharya
We have to take. We have to take certain debt on that. And simultaneously as per on last 8th board meeting the committee was approved where we are given mix. You can say a mix of capital subsidy under the PM Kusum scheme also there. And we are also contributing some sudden debt which meet the project cost.
Unidentified Participant
Okay sir. Thank you.
operator
Okay Sandesh. We’ll take the next question from Mohammed Sheikh Sahil. Please go ahead. There’s some background noise there.
Unidentified Participant
Is it better?
operator
No, no. There’s a lot of background noise.
Unidentified Participant
Hi. Is it better?
operator
Yes.
Unidentified Participant
Yes. Thanks. Sir, just a small question. As the price spread between the primary steel and secondary steel has reached around 9,9500 per ton do you see any volume gains from the primary steel producer primary pipe producers?
Soumen Bose
Please can you please repeat the questions please.
Unidentified Participant
Sir, the price spread between the primary steel pipe producer primary steel and the secondary steel has reached around 9,000 per ton. So do you see any volume gains in terms of market share from the primary steel pipe producers?
Soumen Bose
It is entirely possible. I. At this point in time I cannot zero in on a particular number and tell you. But the confidence what the metric that you cited very rightly. We are gaining the confidence of 30% volume growth from those metrics only. But if you want to zero in on a number, I’m sorry, I cannot give you that number. But you know, our confidence for 30 growth stems for the very differential that you just talked about. Thank you.
Unidentified Participant
Okay, my second question is what is your criteria for considering a product in value added product? Like how much do you make in terms of EBITDA per term to like categorize it.
Soumen Bose
So if you have seen our financials, our the percentage of value added products have increased year on year currently I’m happy to inform the gathering that it is 98% of the total production. The value added stuff. Coming back to your specific question on what do we consider value addition? We do not consider just you know the. Because we have a ISP or the integrated steel process. So basically we make the steel processes one time the secondary process onwards. For example Ms. to miss billets, from Ms. Billets to Ms. Pipes, the second level of value addition.
From that on we consider as value addition, you know. So while Ms. Pipes and tubes are one a good example of value added product. So one which is not very basic now for example HR coil, CR Coil cannot be classified in the truest sense as value added because those are the starting blocks for our further production like pipes and tubes.
Unidentified Participant
Okay sir, got it. And Matt’s last question is. So for future drivers, do you plan to further increase your market penetration? Like you have a good market share in the southern states? Do you have plan for getting market share?
Rupesh Kumar Gupta
Yes. Yes. In fact.
Unidentified Participant
Okay, thank you. That’s it.
operator
Thank you.
Rupesh Kumar Gupta
Yeah.
operator
Yes sir.
Rupesh Kumar Gupta
Statement on some initial planning. So other question answers done then next statement.
operator
Yes sir, we’ll. We’ll take only. Last question from Harsh. January Harsh. Please go ahead.
Unidentified Participant
Sir. Thanks for the opportunity. Just one question. So you mentioned that our inventory days have reduced to 89 days. Is it because we are heading into a seasonally peak quarter and what should be a. You know, steady state invented days. We are targeting for FY26, sorry 89 days.
Amitabha Bhattacharya
See what happened. Generally whenever you see that Q4 that is the peak season for the. For our industry. It is not only for har, it is for segmental. You can take any companies, peer competitors, balance sheet also that is the Q4 is the peak quarter and for Q3, Q4 and then Q1 is coming. No, it is because of our well disciplined inventory management matrix where we are taken very nominal as per our requirement production planning prior to given the order and accordingly we have taken the material as per our requirement and supplies chain and all keeping all the metrics in a proper way in a ERP software base. Therefore we can able to manage this kind of matrix from 128 days to 89 days. And I am very much pretty sure that it will be round around within the limit in the coming future also.
Unidentified Participant
So we are targeting around 90 days for FY26.
Amitabha Bhattacharya
There is no target sir. As much as it will be going.
Unidentified Participant
Down, how much can we do, you know, how much can we improve is. What I’m trying to understand.
Amitabha Bhattacharya
We are, we are trying to reduce this holding level of inventory as much as possible. And if you check with our historical track record also in last three years it will be going down only and the operating cash flow and holding level also it is continuously improving stage.
Unidentified Participant
Understood sir. Thank you.
Rupesh Kumar Gupta
So, so maybe I would like you to announce on this particular thing of format registration, the logo is getting registered also. Apart from that, Green Steel.
Soumen Bose
Sure, sure. Thank you. Thank you sir. I just like would like to inform this august audience that internally we have decided on forming a committee for green steel. The reason why we are doing it is because the government of India is, you know, pushing green steel for sustainability purposes in a very, very big way. And in future, you know, in government procurements a hefty percentage will have to come from the green steel makers. Therefore internally a committee is being formed and we will deliberate on the newer technologies for green steel. We will scout out a reliable partner with sufficient expertise and we want to absolutely increase our grid steel footprint by a substantial margins.
I wish I could have given you the numbers but the plan is always in place. And so basically, you know, we our basically fundraising and all that is, you know, behind us. We are now basically reaping the harvest of, you know, capital raise for the last few years and we are now, you know, this kind of volume growth and all that you’re seeing is basically the result of our past fundraising operations. So going forward this green initiative is, we are taking it rather very seriously and it is being driven right from the highest level and we expect that, you know, we would be, you know, going forward a large portion of our production will be from the Green Steel initiative. Thank you.
operator
Thank you sir. Thank you to the management and thank you to all the participants for joining on this call. This brings, brings us to the end of this conference call. Thank you.
Amitabha Bhattacharya
Thank you, thank you.