Maharashtra Seamless Ltd (NSE: MAHSEAMLES) Q3 2026 Earnings Call dated Jan. 29, 2026
Corporate Participants:
Kaushal Bengani — Deputy General Manager, Investor Relations & Finance
Analysts:
Vikash Singh — Analyst
Radha — Analyst
Ritesh — Analyst
Niraj — Analyst
Ankur Agrawal — Analyst
Tanmay Roy — Analyst
Yogesh Mittal — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Maharashtra seamless Q3FY26 earnings conference call hosted by ICICI Securities 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 call, please signal an operator by pressing10.0 on your Touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Vikash Singh from ICICI Securities Limited. Thank you. And over to you, sir.
Vikash Singh — Analyst
Thank you. Good afternoon everyone. I warmly welcome all of you on Q3FY26 conference call for Maharashtri Seamless. From the management side today we have with us Mr. Kaushal Bengani. Deputy General Manager, Investor Relationship and Finance. Without taking any much time, I’ll hand it over to Kaushal for his opening remark. Over to you Kaushal.
Kaushal Bengani — Deputy General Manager, Investor Relations & Finance
Thank you, Vikash. Good afternoon shareholders and thank you for participating in our earnings call. This was a fairly regular quarter with a slight increase in margin on the seamless pipes front which was expected because we had communicated the same in the previous quarter. On the ERW front also margins improved because of improvement in product mix. On overall level, our total EBITDA was also higher. The highlight for this quarter was the other income which was boosted by improvement in market sentiment and in gold and silver sectors. I would request Vikash to please open for questions so that we can go slide by slide as per the questions received.
Vikash Singh — Analyst
Noted. Operator, please open for Q and A.
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 please press Star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Ladies and gentlemen, to ask question please press Star and one. Now. The first question is from the line of Radha from B and K securities. Please go ahead.
Radha
Hello sir. Thank you for the opportunity. So I wanted to understand what is the current product mix between the standard and value added products for us and how is the margin difference between these two?
Kaushal Bengani
We’ve already informed in earlier calls that we will not discuss product wise margin. The current product mix between oil sector and other sectors is already detailed in the order book which is mentioned on slide 15 of the presentation. The current order book is at 1302 crores of which 33% comprises ONGC and Oil India orders. This order book. Sorry, this order book is broadly similar to the order book which was present in the previous quarter. The only difference between these two order books is that the proportion of oil sector orders have increased in the most recent order book.
Radha
Actually some of the peers are doing similar EBITDA per kg that we have reported with half of our volumes. So that is why this question whether in our numbers currently is the standard product mix higher than the value added.
Kaushal Bengani
Which peer are you referring to? Because as per my understanding there is no comparable company which is only focused on seamless pipes.
Radha
That is correct sir. I’m only comparing with their carbon steel so they.
Kaushal Bengani
They don’t report product wise or division wise margins. So I don’t think it will be possible to do a comparison unless you have internal data of the company. Then it’s a different story.
Radha
Sir, ISMC is actually reporting.
Kaushal Bengani
But then they have different types of products. So the seamless pipe product mix that we have is not the same that is undertaken by Kildoskar Ferrers.
Radha
How is it different?
Kaushal Bengani
Sir, they are more focused in the smaller size segment.
Radha
But sir, previously when we had a conversation you said that you know, in terms of diameter of pipes we have the entire range that is required.
Kaushal Bengani
So their proportion of smaller sizes is higher compared to our proportion of smaller sizes because we have a larger capacity and a larger size range.
Radha
What percentage of smaller pipe sizes do we have at the.
Kaushal Bengani
We are not giving that. I mentioned at the starting of the response that we will not give you product wise, segment wise bifurcation and every call I believe this question is asked of me by you and every time my response is the same that we will not give you that bifurcation.
Radha
Any value added products like casing pipes, tubing pipes, etc. Can you help us understand the current market dynamics in terms of demand and supply, including the imports?
Kaushal Bengani
Casing pipes and tubing pipes are regular seamless pipes. We don’t consider them value added products. Value added products are coltron pipes, cylinder pipes, drill pipes, sour service, subsea seamless pipes and premium connections. I think these are the five key categories of value added products out of which we manufacture four of these. So in the previous quarter there were no orders for drill pipes. Even now we don’t have orders for drill pipes, cylinder pipes. We had a good order book in the previous quarter and even now also we have a good order book for cylinder pipes.
The same goes for power service, subsea seamless pipes and coltron pipes. We do not manufacture premium connections right now. We have signed a royalty agreement with a foreign partner and that work is under process. I think in about six months time we should be able to start production of premium connections.
Radha
Any color on the capacity that you’re planning to set up in this.
Kaushal Bengani
The capacity expansion plan that we have detailed in. Out of that we had started two projects. The Coltrone pipes project which has been completed. And the other one is the finishing line at Telangana in which we have issued purchase orders of 90 crores. And we’ll be able to start some portion of it in the current quarter.
Radha
Yes, I was asking about premium connections.
Kaushal Bengani
I’ve already told you about premium connections that we should be able to start in about six months time.
Radha
Yes, sir. Capacity for premium connection.
Kaushal Bengani
We will get back to you.
Radha
Okay, sir. Any color on the current bid pipeline or any new tenders that we are expecting in the near term?
Kaushal Bengani
We don’t disclose that.
Radha
Okay, last question.
Kaushal Bengani
We have disclosed the order. Just one second. We have disclosed the order book. If you have been tracking the company for some time then you should be aware that the order book that we have is always for a period of three to four months. So the current order book is dated 20 January. So for the current quarter we have disclosed our order book segment wise.
Radha
Okay sir. In the last quarter you had mentioned that imports is around 20 to 25% of the domestic industry size of 9, 10.
Kaushal Bengani
No, no. And it has not reduced. And despite the unabated dumping from China we have managed to maintain and improve upon our margins. And the tonnage that we have dispatched has not declined despite the challenging economic environment.
Radha
Primarily driven by product mix.
Kaushal Bengani
Product mix is not relevant for total dispatches.
Radha
So you said margin has improved despite the continued dumping.
Kaushal Bengani
I’ve said this again at the start of the call that the increase in margins was on account of reversal of the inventory markdown which was done in the earlier quarter. And that also I had pointed out in the previous quarter’s call that there will be a improvement in margins in the subsequent quarter.
Radha
Okay sir. Thank you and all the best.
Kaushal Bengani
Thank you.
operator
Thank you, ma’. Am. Ladies and gentlemen, to ask question please press Star and one now. Participants who wish to ask questions may please press Star and one at this time. Time. Ladies and gentlemen to ask question please press Star and one now. Participants who wish to ask questions may please press Star and one now. The next question is from the line of. From Girig Capital. Please go ahead.
Ritesh
Yeah, thanks a lot for opportunity. So I just wanted to know about your 852 crore capital expenditure by when you will plan to spend this amount?
Kaushal Bengani
We have started two projects. Once the Telangana finishing line project is completed then we will take up other items mentioned over there. Okay.
Ritesh
So Telangana finishing line that will increase the capacity by 1 lakh ton, right?
Kaushal Bengani
Yes.
Ritesh
Okay.
Kaushal Bengani
I’ll just clarify. It will not increase the production capacity. It will increase the finishing capacity. So we already have production capacity which is of 2 lakh tons which is currently unutilized. Because commensurate finishing facility is not in place. That bottleneck is being resolved by the finishing line which is currently being implemented.
Ritesh
Sure. But even though If I take FY25 numbers your production was 4 lakh 40,000 tons and capacity 6 lakh. So now from that 5 lakh the entire 6 lakh can be utilized. Is that understanding? Right.
Kaushal Bengani
Against 4 lakh 41,000 tons for FY25 capacity is 5 50,000 tons which is active and utilizable. The additional 100,000 tons is not active and not utilizable. Because the commensurate finishing facility for that 1 lakh tonnes is not in place right now. This issue is being addressed by putting in a finishing line at Telangana.
Ritesh
Okay. That. That clarifies a lot. Also on if you can give an outlook on how are the ONGC and oil tendering happening. Like you have mentioned, that drill pipe order is awaited. What will be the order size of that?
Kaushal Bengani
Very small. Because the drill pipe annual market is around 8 to 9,000 tons for the entire country. But these are high margin orders. That is why they are specifically pointed out in our order book.
Ritesh
In recent IIP numbers the base metal sector has grown, has seen a good growth. And in the press release also written that steel tubes market is growth has been encouraging. So what are your comments on that and how that impacts our company?
Kaushal Bengani
Who has given this view? I couldn’t.
Ritesh
Yesterday IIP number base metal has grown by some 10%. And in the commentary it’s said that within base metal the metal tube industry has done well. So is our company considering the metal tubes company?
Kaushal Bengani
We are part of the Metal tube association. But our market is a niche market. Because it is used for. Our products are used for a specific purpose. And it is dependent on government expenditure in the oil and gas sector rather than for general consumption.
Ritesh
Sure, sir. Thanks. That will be from my side.
operator
Thank you, sir. The next question is from the line of Neeraj from Pranch group. Please go ahead.
Niraj
Hi. Thanks for the opportunity to ask the question. Is my voice audible?
Kaushal Bengani
Yes.
operator
Yes sir.
Niraj
My question is you have about 3500 crore of liquid investment out of that close to 2957 is into the mutual funds. Can you give the bifurcation? How much is your potato to the equity mutual fund? How much is into the gold? And how much of this?
Kaushal Bengani
We are not giving that bifurcation out and it is not required.
Niraj
Okay. Okay. So you. You don’t want to disclose this information. The reason for this is I just wanted to know what kind of a risk capital the company is carrying in their treasury operation. With regards to investment into the equities market. How much is the portion? Even a quantitative number with regards to how much of the money of this has been invested into the liquid scheme might be helpful.
Kaushal Bengani
The total portfolio return for the nine months ending December 2025 is in excess of 24%.
Niraj
Okay. Okay. Thank you. And no issues.
operator
Thank you. Sir. The next question is from the line of uncle Agarwal, an individual investor. Please go ahead.
Ankur Agrawal
Good evening. Sir, my question. Yeah. My question is regarding. Sir, as of what we understand is that the demand of stimulus pipe is something that you cannot create. You are dependent on the requirement of the government agencies. And as I understand the export sector is not viable as of now. As for the seamless five is concerned. Am I correct?
operator
He was. Sorry to interrupt your uncle. Sir. Sir, lot of disturbance from your side. Can you please use your handset?
Ankur Agrawal
Yeah, sure. Hello.
Kaushal Bengani
Yes.
Ankur Agrawal
Yeah. So my question is. Sir, we are sitting on a lot of cash. Company has already decided that we will not diversify in other segments. So what do you see our future growth prospects in next two to three years? What is the management deciding about future course of action? Sir.
Kaushal Bengani
We are conserving cash as of now. And we are on the lookout for any inorganic opportunity that may arise. But that inorganic opportunity should be at a cost level at which we are comfortable. So we will not buy assets at full value. We will buy only distressed assets. Because that makes the most sense for us in our industry which is cyclical. In addition to that, we are focusing on treasury management and on improving our operations internally. Right now that is the position that. That we can communicate.
Ankur Agrawal
So all as of all that we can do now is hope for the demand to somehow increase and then only our revenue can increase. Is that Kita?
Kaushal Bengani
Yes.
Ankur Agrawal
Okay. And still the management is of the view that you do not want to increase the dividend or somehow distribute the cash to the shareholder.
Kaushal Bengani
We have quadrupled the dividend which is being paid out to the shareholders in the period from FY22 to FY24 and in FY25. Even with a lower profit, we maintained the quadrupled level of dividend which was paid out.
Ankur Agrawal
So that is absolutely correct. But the only issue that I have is that since approximately 50% of our market cap is in cash or cash equivalent with the company now, I’m also of the opinion that since you cannot increase the demand of the seamless price to increase the value of the company, I think you only have two or three options with user. If in case you are not able to increase the demand, you have ample cash, you can also increase the dividends in the proportion of the cash that you are reserving with the company. We are not saying that you are not taking right decisions or something is in your hand and you are not doing that.
But either if in case you have ample cash, you can distribute to the shareholders. So at least as a shareholder, we should also enjoy the effort that you have put in the company and manage so much cash in such a right way.
Kaushal Bengani
Okay.
Ankur Agrawal
Am I making sense, sir?
Kaushal Bengani
The interest of the equity shareholder does not necessarily have to align with the interest of the management in running an organization. So we focus on long term value creation. And when you do make the point that 50% of our market cap is backed by cash on the books, you should also bear in mind that in this seamless pipes industry, every one of our peers, without exception, have either been bankrupted or gone to bankruptcy courts. We are the only player in this industry who has consistently remained a market leader for the past 35 years. So our thought process would be different from that of our peers.
And it has benefited us, which is why we remain aligned to the thought process which has benefited us.
Ankur Agrawal
So you are absolutely correct. So, and kudos to the management that have accumulated so much cash. And you have also dealt it in the right way. But there has to be a cap on the amount of money that you think you need to reserve. Because.
Kaushal Bengani
You’Re saying that legal requirement that there has to be a cap.
Ankur Agrawal
Absolutely correct, sir.
Kaushal Bengani
There is no cap. And we want to follow those business principles which have ensured survival and prosperity of our organization, rather than those business principles which appear good, maybe in the shorter or medium term, but which may not be so applicable in the longer term. We are the oldest player in the industry and we have remained a market leader. You may not like what I am saying, but that the points which I am making are clear facts which are easily verifiable.
Ankur Agrawal
I myself have been a shareholder in the company for last four to five years and I have followed the company, joined each and every Call it is not that you are misguiding us or what you’re saying doesn’t make sense to us. We are also one of the shareholders who are happy to see the growth if not in terms of revenue but the value of the company. But I’m sure you will understand as a shareholder we also look forward to.
operator
So may I request you to come in the queue for follow up question?
Ankur Agrawal
Sure, sure. Thank you for answering my question, sir.
Kaushal Bengani
Thank you.
operator
Ladies and gentlemen, to ask question Please press star and 1. Now. Participants who wish to ask questions may Please press star and 1. At this time. The next question is from the line of Tanmay Royer, an individual investor. Please go ahead.
Tanmay Roy
Hi. Am I audible?
Kaushal Bengani
Yes.
operator
Yes, sir.
Tanmay Roy
Yeah. So right now what I could see that our current capacity is not fully utilized as you know. And then the demand is also not that high. So even if the Telangana plant comes into effect. So if the demand stays the same, is it fair to assume that it will going to impact our profitability in coming quarters.
Kaushal Bengani
Since the union budget is only few days away. Okay, maybe I’ll be able to address your query better after the budget. Because we are dependent on government expenditure for. Government expenditure for expansion and growth. So if government expenditure does not improve then the market will not grow which will directly impact us. So let us see what the budget puts out and accordingly you can decide.
Tanmay Roy
Government expenditure can improve in other sectors may not be necessary for oil and gas. So even if that stays the same oil expenditure it doesn’t that goes up then it will be same. Right.
Kaushal Bengani
Because sustainable level of expenditure in oil and gas sector is there. But your question is in terms of growth. So for growth we will require more expenditure in oil and gas sector.
Tanmay Roy
Okay. Okay, fine. The next one is given that we have now that FTA in place with Europe and also which might get activated in next year 27. So will that anyway affect or help, you know, our business to grow in European countries?
Kaushal Bengani
We are still reviewing that exports have seen some improvement in the previous quarter. Maybe in the next quarter’s call we’ll be able to update you better on this FTA point.
Tanmay Roy
Okay. Yeah. So any guidance in terms of EBITDA pattern for next quarter or something for next year?
Kaushal Bengani
We do not give out guidance specifically. But the only thing that I can tell you from from some experience is that we don’t see margins to decline materially from here. I think it will remain in the range of 10 to 15,000 rupees per ton.
Tanmay Roy
Okay. But after the anti dumping duty which has been put some Days back then we could see that aggressive prices are going up. I mean slightly.
Kaushal Bengani
No anti dumping duty has been put. It is. It was only extension.
Tanmay Roy
Sorry, that extension which they have considered extension. 12%. 12 point. 12.5%. Something like that.
Kaushal Bengani
That is a safeguard duty on steel, correct?
Tanmay Roy
Correct.
Kaushal Bengani
But that is not applicable on our industry.
Tanmay Roy
No, that’s what I’m saying. After that the rick acid price started going up. Will it affect anything on to our industries or that.
Kaushal Bengani
Our order book is supported by back to back booking of raw material. So if raw material prices will increase then the same will be passed on to the customer. And for orders which were in place prior to the implementation of safeguard duty we had already covered those orders with raw material.
Tanmay Roy
Okay. Right now our oil and gas order book is around 400 crores, right? It generally gives high ebitda per ton.
Kaushal Bengani
Yes, 33%. So 33% of 1302 crores is around 400 crores and that exclude the anticipated.
Tanmay Roy
Drill pipe order, correct?
Kaushal Bengani
Yes.
Tanmay Roy
Okay. Okay. Thank you so much. And maybe next quarter. I’ll ask for that now after the budget.
Kaushal Bengani
Thank you. Thank you.
operator
Thank you. Sir, the next question is from the line of Yogesh Mittal, an individual investor. Please, please go ahead.
Yogesh Mittal
Hello.
operator
Yes sir.
Yogesh Mittal
Thanks for giving me the opportunity. I have a question regarding as we are hearing and seeing the reports like the shale gas and the oil and the. The peak oil output has just passed and now more. Now more. More. More means more drilling is required to get the same amount of oil and gas. Sir, can you please throw some light on your acquisition about the United Seamless Tubular that was done some time back. And how are you getting the feelers in the market? Or do you see that Capex is coming by large global conglomerates in this space? Thank you.
Kaushal Bengani
Regarding United Seamless Tubular, what is it that you would like to know?
Yogesh Mittal
Sir, I would like to understand the means like we acquired it on some basis. Is the thesis play. Is the thesis playing out? Are we getting some traction in North American or the European market where we wanted to compete with the other last players.
Kaushal Bengani
I am confused. We never said that we want to compete in European and North American market from our mill in United Seamless Tubular. That mill is working very well. We acquired it for 477 crores. And we invested an additional 73 crores to reactivate the mill. So against the total capital expenditure of 550 crores that mill generates between 100 to 200 crores of EBITDA every year depending on the margin profile. In addition to that there were accumulated losses and unabsorbed depreciation in excess of 1500 crores in United Seamless Tubular Private Limited. Subsequent to merger of that company with Maharashtra Seamless we were able to set off the profits of Maharashtra Seamless with the unabsorbed depreciation and accumulated losses of United Seamless Tubular.
Thereby saving tax of around 375 crores.
Yogesh Mittal
Yes, sir.
Kaushal Bengani
So the entire project was paid back in maybe two years. So yes, the thesis did play out. And that is the position today.
Yogesh Mittal
Sure, sir. Thanks for the elaborate answer. And sir, regarding the investment by large companies in who are the users for our pipes? Though we are mainly focused with ONGC and some other players are we getting some action with other large consumers in terms of the seamless pipe for new healings in oil and gas space we.
Kaushal Bengani
Have been able to replenish our order book without compromising on on the tonnage that we have dispatched. So in the second quarter we dispatched 1 3,000 tons of pipe. In the third quarter we dispatched 1 1,000 tons of pipe. And in spite of a challenging economic environment in which government expenditure was also muted we have managed to replenish the order book. Yes, sir.
Yogesh Mittal
Sir, if I can ask you something more. Sir, in last four years we have seen there have been frequent changes for the CFO Chief Financial Officer in the company. Is company taking some steps that there will be more consistency going forward?
Kaushal Bengani
The changes in the CFO was on account of various factors which were unique to each CFO. So right now Mr. Arup Mandal is the CFO and he’s been with us for about a year and half. Yes, sir. But in addition to the CFO point I would also like to mention that I have been with the organization for 14 years. So I think that should give you some comfort.
Yogesh Mittal
Yes, sir.
operator
Thank you, sir. The next question is from the line of Vikas Singh from ICICI Securities. Please go ahead.
Vikash Singh
Hi Kaushal. Just one question on our Premium Connection site. Can you just tell me what is the current market size for that Premium connection in India and what kind of markets here we are looking to acquire on that segment?
Kaushal Bengani
Premium connections would be between 50,000 to 1 lakh tonnes per annum. Depending on the amount of capital expenditure that takes place right now. This product is being supplied by Jindalsaw and through imports. So we will have to take some of their shares in order to compete in this environment.
Vikash Singh
Noted. And my second question pertains to. We. Six months back we heard a lot of news about ONGC needs to drill almost 500 wells and accumulated demand expansion for these Wells could be 100kt in tonnage terms. So just wanted to understand. Is there. Any progress on those stated 500 wells at all? Or if you have any idea that what’s happening there, it would be.
Kaushal Bengani
There is regular requirement of seamless pipes. However, we would have preferred if there was maybe a 5 or 10% increase because then it gives us more assurance on pricing and on replenishment. So despite a challenging economic environment in which government expenditure was low, we have managed to replenish our order book without compromising on the tonnage that we have dispatched on quarter. On quarter basis. I think in the budget we should expect some improvement in government expenditure and then that will have a multiplier effect on the rest of the economy.
Vikash Singh
Noted. That’s all from my side.
Kaushal Bengani
Thank you.
operator
Thank you, sir. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to management for closing comments.
Kaushal Bengani
Thank you shareholders for participating and thank you Vikash, for organizing the call.
operator
Thank you, sir. On behalf of ICICI Securities Limited that concludes this conference call. Thank you for joining us and you may now disconnect your lines.
Kaushal Bengani
Thank you.