Sambhv Steel Tubes Ltd (NSE: SAMBHV) Q3 2026 Earnings Call dated Feb. 02, 2026
Corporate Participants:
Unidentified Speaker
Vikas Kumar Goyal — Managing Director,Chief Executive Officer
Ms. Anu Garg — Chief Financial Officer
Analysts:
Unidentified Participant
Presentation:
operator
Ladies and gentlemen, Good day and welcome to Sambav Steels Tubes Limited Q3FY26 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 call please signal an operator by pressing 100 on your Touchstone phone. Please note that this conference is is being recorded. I now hand the conference over to Mr. Sahil Sanghvi from Munark Net Worth Capital Limited. Thank you. And over to you sir.
Unidentified Speaker
Thank you Valak. Good evening everyone and welcome to Sambhav Steel Tubes Limited’s earnings call to discuss Q3 and 9 month 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, Chief Strategy Officer and Mr. Mayank Agarwal, ABP CEOs Office in Investor Relations. I now invite Mr. Vikas Goel 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 Vikashji.
Vikas Kumar Goyal — Managing Director,Chief Executive Officer
Thank you Sahil. Good evening everyone. Thank you for joining us for some work. Quarter three nine months financial year 26 earning calls. I hope you have had an opportunity to go through our financial disclosures available on the exchanges. I will walk you through the key strategic updates, operational progress and the financial performance followed by the question and answer session. I am pleased to share that Sunbhav has delivered its strongest ever nine month performance with total sales volume, revenue, EBITDA and PET growing by 34%, 70%, 73% and 110% respectively reflecting robust operational and financial progress. Before delivering delving into the performance details I would like to highlight some key strategic updates on the capacity expansion front.
The company is developing a greenfield project at Kesda and Kutzrel unit 2. We are pleased to inform you that environmental clearance from MOEF Delhi has been received and the project execution has commenced. And within just two months of breaking the ground we have achieved significant progress under the brownfield expansion GP capacity. Galvanized capacity has been increased to 1 lakh 16 thousand ton per annum. Additionally we are progress to doubling the stainless steel CR capacity from 58,000 ton per annum to 1 16,000 per annum for which the city consent to establish has already been received. Also I would like to mention that we have executed four mu to common stainless steel pipes manufacturing under the co branding and several other MOUs are in progress.
Coming to operational performance during quarter three financial 26 Sambhav has achieved its ever highest sales volume of value added products with strong contribution across all segments. During nine months financial year 26 Sambhav reported record high sale volume with value added sales volume at 2.6 lakhs atoms marking a growth of 60%. The stainless steel segment has performed exceptionally well during the quarter and also in 9 months of financial 26. As a result EBITDA pattern remained healthy over Rs. 6,800 in 9 months financial year 26. The management continues to execute its strategic roadmap by steadily transition the product mix towards high margin and value added products.
Moving to financial performance on nine months basis, Sambhav deliver its highest ever revenue beta impact revenue increased to rupees 728 crores 1728 crores reflecting a 70% increase year on year supported by better operational efficiency and higher production and sales volume. EBITDA grew 73% year on year to rupees 184 crore and PAT is more than double to Rs. 88 crores. Looking at the quarterly numbers we have achieved revenue and EBITDA of rupees 589 crores and 51 crores reflecting the robust growth of 60% and 34% respectively that has more than doubled through 24 crore on the year on year basis.
I would like also to highlight that financial cost decline significantly driven by the repayment of long term borrowings. In conclusion, Sambhav remains well positioned to sustainable value added growth, supported ongoing capacity expansion, improving market penetration and strong distributor and customer network that enhance product reach. Our continued focus on value added products, operational efficiency and brand building is strengthening our competitiveness and resilience. With the strategically located integrated plant, efficient captive power system and expanding OEM and dealer relationship, the company is well placed to benefit from the growing demand in India’s steel pipes and tubes and stainless steel market.
Supported by healthy balance sheet, experienced leadership, strong stakeholder confidence, Sambhav continues to progress steadily towards its long term growth objectives. As we always say, that’s all from me. I would love, I would now respect to open the floor for Q and A. Thank you.
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 two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Hardik Gar Randy from hpmg. Please go ahead.
Unidentified Participant
Hello sir. Congratulations on a good set of numbers. Hope I’m audible.
operator
Yes sir.
Unidentified Participant
Yeah, so just I was following this trend in your company where quarter on quarter the EBITDA per ton is reducing where we understood our value added products were supposed to increase the EBITDA per ton. If we see on quarter two versus quarter three our EBITDA pattern fell from 6100 as to 5200 and there’s a significant pressure on our EBITDA margin. So can you just help us understand that.
Vikas Kumar Goyal
Margins down second quarter. Content. Like in Q3 maybe. Stainless steel key pricing may. In terms of comparison of Q2. Comparatively. Psara Hamney galvanizing product Kihamari capacity increase key value 1 lakh tonkiusko 1 lakh 16,000 kia additional wider width. Commission Kia maintenance or shutdown period Lina Pada improvement or Karjangi Q3. Appreciation 4000 rupees increase. Or Abi for worry may or ignay increment.
Unidentified Participant
Going forward basis pay what should we expect? A healthy EBITDA margin per turn. Because we earlier spoke in the previous concourse we spoke that we will we will be reaching a higher EBITDA per ton because of the value added products by the end of the year. And you know this is on the contrary. And what would be a healthy number per ton? And second thing volume may be drop where the total production volume 33 lakh 30,000 34 34,000 say 3 20,000. So although we are doing a significant expansion the capacity utilization should be increasing and volume should be increasing.
So like contrary we would decry.
Vikas Kumar Goyal
Face volume key here the value added products or in terms of quarter two. In terms of quarter one also so liking Amara intermediate product or in terms of production of the thing. Or going forward.
Unidentified Participant
Anyway so. So indirectly you’re saying the jump in the next next Q4 EBITDA would be enough to rise the overall years per ton EBITDA so approximately 9,000 per ton. If that is supposed to happen is that understanding?
Ms. Anu Garg
No, a bit correction on the understanding. First is overall 26 EBITA per ton we are expecting at around 7,000 rupees ton and 7,500 per ton is expected for Q4 correct so currently we we have achieved in Q3 in terms of number of EBIT is 5,500 plus and overall for financial year 2026 we will be achieving 7,000 plus overall. And for Q4 we are expecting 7,500 rupees per Q4.
Unidentified Participant
Right. So. So just to understand where is the confidence coming where we’ll be able to jump 1800 rupees EBITDA per ton in just Q4? I know there have been price increases but is the visibility there just.
Ms. Anu Garg
Yes. 3. The 3 problem that CEO sir has stated in Q3 is actually is getting reversed in Q4. That is first coil price has increased by approximately 10% from Q3 in Q4 we have already procuring our raw material at very low cost in Q3 which we are going to utilize in Q4. So that margin expansion will be there from black carbon black steel side. Secondly, our GP production capacity is already being enhanced and commissioned. That benefit also we will be getting in Q4 plus stainless steel. If you have, if you seen China export duty of 9% approximately which they suppose they they have implemented that that’s why the price of stainless steel across the board has been increased.
So benefit of that we also accrue in Q4. However, if we see the confidence of incremental EBITDA per ton is coming from all these three factors.
Unidentified Participant
Understood, Understood. That’s it from my end. I’ll join back in the Q5. Any more questions? All the way.
operator
Thank you sir. 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. The next question is from the line of Devesh Lakotia from EGI Asset Manager. Please go ahead.
Ms. Anu Garg
Yeah.
Unidentified Participant
Hi sir. Good afternoon. Congrats on the performance. A couple of questions. I think in. Your opening remark you mentioned about some MOUs being signed. So could you just elaborate on that. And second, on the stainless steel pricing, as you highlighted, withdrawal of rebates on China side. So is it applicable on its stainless as well as. And what is the kind of improvement. In. Pricing that you have already seen on the stainless side? And this would be more on the 200 series grade where we are predominantly kind of looking at it. Right. 50% through isco. Execute current. 707,000 rupees kmo 700 say 1010k.
Ms. Anu Garg
So this China is, you know, they have already tightened the export regime for stainless steel. Specifically with effect from 1st January 2026. They have done it purposefully to curve underpricing of stainless steel product export and illegal trade which is happening through Dubai, Indonesia and Vietnam route because there domestic consumption for stainless steel has increased drastically.
Vikas Kumar Goyal
First.
Ms. Anu Garg
Secondly, the price of stainless steel across 200, 300400 series has been increased with effect from 29th January 2026 by 2000 to 3000 rupees depending on which grill we are talking about. So overall if you see the stainless steel market itself at least for the domestic manufacturer perspective in India seems to be very robust currently. Because somewhere China is tightening their export export to India. And secondly, Indian stainless steel production itself is not enough to meet the current demand of Indian consumer.
Unidentified Participant
Got it sir. So just one follow up on the. On the first question. So these mous how are the. How does the economics work between us and our partners? Do we sacrifice anything on the margin side or is it more just volume related?
Vikas Kumar Goyal
We are just making the marketing aspects for their market. Marketing expenditure.
Unidentified Participant
Right now what would be the average selling price on a per ton basis. For pipes for us?
Vikas Kumar Goyal
Although for the Q3 or right now. Both Q3 and current position. For Q3 the HR pipe average realization is 46,100 around and for the value added products GP stood at 59,200 and SS coil 200 series is around 1:24,000 and 300 series is much more that is around 1,80,000.
Unidentified Participant
And similarly what would be right now for these products?
Vikas Kumar Goyal
These are black pipe is right now is 52,000 rupees per ton and the galvanized product is 66,000 per ton. And the stainless steel is 126 I think.
Unidentified Participant
Got it. Thanks a lot.
Vikas Kumar Goyal
66,000.
Unidentified Participant
Got it.
Unidentified Speaker
Thank you sir.
operator
Ladies and gentlemen, to ask a question please press star and one now participants who wish to ask questions may please press star and one at this time. The next question is from the line of Vikram Sharma from Nivisha. Please go ahead.
Unidentified Participant
Hello. Hi sir, first. First question is regarding can you explain the like capacity New capacity commissioned during this quarter and also a new capacity coming on stream over the next few quarters like we were doing deep bottlenecking instead and new plant side. So if you can explain about the overall capacity added and new capacity coming.
Vikas Kumar Goyal
Production capacity enhanced last month benefit secondly. Or benefit of May Q1 May next year Brownfield expansion of other children Greenfield 3 lakh 50,000 ton first phase make or though stainless steel. Results based Mayankiham seamless pipe may Cassie hammers may Intriguer pine market survey or production technology.
Ms. Anu Garg
Yes. So we are expecting that capacity to be commissioned by Q4 2027 and all the brownfield expansion that we are currently undertaking is going live for gp. It’s already gone live or stainless steel it is going live by March 26th.
Unidentified Participant
And last quarter we have started selling in 300 series. 200 versus 300 mix in stainless steel side.
Ms. Anu Garg
So if you see in Q3 we have sold around 1200 to 1300 crore ton of stainless steel of 300 series. We have got good feedback about it. We are in this particular quarter also we are ramping up the production of 300 series. If you see currently the mix is. If you see this for the stainless 300 and 200 it’s mostly 3070 currently. But we try to achieve 5050 mix in Q4.
Unidentified Participant
Okay. So average realization will increase to 1.4 lakh. 1.5 lakh in Q4 for this. Dependence. External power dependence.
Ms. Anu Garg
Day by day or year by year or state government. Since carbon steel market of India domestic market maturity stage future will be on cost competitive basis carbon steel market operate for that power plant required to compensate for 45% of our electricity requirement which we are currently drawing from external grid under planning stage approximately 125 to 150crk capex requirement. And we can achieve upward of around 50 crore rupees in terms of electricity bill from that particular power plant.
Vikas Kumar Goyal
Approval.
Ms. Anu Garg
Kilijara very initial stage BEH or land acquisition. In terms of power per serval plant and we are actively working on that side.
Unidentified Participant
Last question. Clinic disclosure fraud allegation in our subsidiary company.
Ms. Anu Garg
New project for future land banking transaction for which advance payment of 11.5 crore was given. During our due diligence process we have found out that the land is already being mortgaged to a certain financial institution which was not disclosed to us during the deal making process. Once we found out, we demanded for either refund or get an NOC from the existing lender. So landowner. Approximately out of 11.5 crore balance 2.5 for the refund. So since as an intent as a listed entity, we do not want to showcase ourselves as a entity which is procuring a mortgage land without having consent of the borrower.
So we have gone ahead to file a case against the seller of the land. But current status is we are amicably, you know got the money of nine crore rupees from the party and balance amount is under refund process.
Unidentified Participant
Okay sir. Thank you.
Vikas Kumar Goyal
Thank you Vikram.
operator
Thank you sir. Ladies and gentlemen, to ask a question please press star and one. Now the next question is from the line of Mirage from Chem9 LLP please go ahead.
Unidentified Participant
Thank you for the opportunity, sir. But I would still like to just touch upon it once. Regarding the gross profit that we’ve seen GP per ton December so gross margins quarter on quarter and yoy both have declined.
Vikas Kumar Goyal
So. Erw pipes and. If you can just explain GPQ gross profit margins. The GP is all connected with the pipes and tubes. Not. Not valuation. I’m saying gross profit, not galvanized pipes. Gross profit. Gross margin. Sorry. Gross margin.
Ms. Anu Garg
Yes, because of increase in raw material cost which CEO sir has explained earlier in the call that raw material prices has for HR coil has decreased but sale price has not been. Sale price has also been decreased but raw material less in iron or and punch has not been decreased in in comparison with the HR prices. And the benefit of decreased iron ore cost and sponge iron cost will showcase in Q4.
Unidentified Participant
So ma’, am, if I’m not wrong, you’re trying to say inventory loss. However in Q3 no inventory. Okay? Okay, Understood. So sir, if I’m not wrong, NMDC has recently revised their prices somewhere in Jan. What was the change over there in pricing in iron?
Vikas Kumar Goyal
150 rupees per ton.
Ms. Anu Garg
They’ve increased by 150 rupees. Okay. But our increase in ERW pipe prices have been much more than that, right job? I think 10%. So almost 4,5000 rupees. Okay, understood. And secondly sir, you were mentioning future product. So I think you were just mentioning that. You know you are looking at. Did you mention seamless types or stainless pipes?
Vikas Kumar Goyal
Seamless. Seamless. Systemless. Seamless tubes. Seamless tubes.
Unidentified Participant
Okay. Seamlessly seamless tubes. Okay. Okay. That is something that you have. So if you can just touch upon the clientele, what is the opportunity that we are seeing? Can you just give us some highlights over here as well?
Ms. Anu Garg
So just to elaborate our trajectory as a group scale or profitability. Carbon steel may achieve stainless steel capacity utilization or market acceptability achieve Karnika bar. We are just increase our capacity by six fold for stainless steel market. So in that process for Hamelakta Hai going forward the growth will only come from value added and special stainless steel products where a company can achieve a good amount of profit or a higher margin. So our point of view logical extension. After our two successful implementation of business model for carbon and stainless steel take high value product or high technological oriented product may invest logical extension.
So that is why seamless as a market comes into play. Government manufacturing sector investment opportunity create Kia Hai or Kasisa incentive or Kasisara package or everything. Whenever this kind of Budget comes steel market used to support Karta and Best party. Seamless is something which is the. The use of that product in the defense, in the marine, in the nuclear power, in, you know, wherever you can see the usage is going to grow exponentially. Minimum quantity huge. Seamless as a product is natural extension to what we are doing currently. That is why we are planning. We are studying the product, studying the market, studying the competitors and studying the technology.
And we, it may happen that we come up with a technological partner in that and we execute this project in a joint venture manner. Secondly, stainless steel. Today only we have received approval for our PLI scheme 1.20 product application file approval detail to be worked out during MoU process which will start in second week of February. Currently we are happy that at least we get another, you know, bazooka in our hand in terms of PLI Scheme approval for our future stainless steel product expansion.
Unidentified Participant
Understood. That’s great to use that we received the PLI approval. Quantum, can you just clarify or you’ll still invoke that how much you’re going to receive?
Ms. Anu Garg
I said we have not received the entire MoU or the draft that we supposed to be executed with the government of India. That will be expected by the second week of February. Upon that MOU in our hand we can you know, give you some number on that. I will, you know, release detailed note on that once I you know, execute.
Vikas Kumar Goyal
That MOU with the government.
Unidentified Participant
Understood. And. And sir, on seamless part, just one more thing over here. So seamless method, the raw material is required as billets, right? Then how are we going to make billets over there? Even if you’re doing stainless seamless.
Vikas Kumar Goyal
Going forward.
Unidentified Participant
Understood. Okay. Okay. I’ll get back in the queue. Thank you. And all the best for the future, sir.
Vikas Kumar Goyal
Thank you.
operator
Thank you. Sir. The next question is from the line of Aryan Bhatia from Invade Research. Please go ahead.
Unidentified Participant
Thanks for the opportunity. Sir, my question is regarding a stainless steel capacity. So I just wanted to know like in the first phase of expansion we were bringing about something 3 lakh 60,000 tons. That will be first phase. And we are doing a brownfield expansion of from 5:58 000 to 1 lakh. So these are separate capability. Am I right? Can you give the total capacity which will come by FY27 or change.
Ms. Anu Garg
Will be approximately 4 lakh 17 thousand 70 thousand ton of annual capacity.
Unidentified Participant
4 lakh 70 thousand. Okay, great. And my second question is like currently we are, you know, if I look at some players so when they do stainless steel, the raw material. Sorry, Working capital days is expanded due to the higher inventory days. Do you expect when we will also expand our stainless steel capacity by 6x? So our working capital cycle is going to remain the same or will have some, you know, expansion.
Ms. Anu Garg
Yeah. Between asserting nets stainless steel product portfolio mix, once it’s increased there will be impact on our working capital days. It will increase definitely. Because this market operates visa vis carbon pipe market in very different manner. So our working capital is expected to be increased. Once we go live with our select 50,000 ton of greenfield expansion for stainless steel.
Unidentified Participant
What should be the expected, you know, increase in working capital days you have calculated or are expecting from our current 2030 days of working capital.
Ms. Anu Garg
On a higher side, 20 days is more conservative or very conservative. I would say 10 to 15 days is at max. I think we will have initial days of you know, increment in working capital date. Once our product gets accepted into the market. I think that will be stable at around 10 days.
Unidentified Participant
Okay. And sir, my last question is like in the next year FY27, the major growth will be coming from our stainless steel brownfield expansion. Because all our all our capital is going to be utilized in this year only. Am I right? Yes.
Ms. Anu Garg
Yes, sir.
Unidentified Participant
And our total capacity for FY27 will be 3 lakh 60 for ERW BI and GP will be 1 lakh 12 and will be also 1 lakh.
Ms. Anu Garg
Yes. Correct.
Unidentified Participant
Okay. Okay. Thank you.
Ms. Anu Garg
Thank you.
operator
Thank you, sir. The next question is from the line of Abhinav Shetty from Elios Financial Services. Please go ahead.
Unidentified Participant
Hello sir. Am I audible?
operator
Yes, sir.
Vikas Kumar Goyal
Yes.
Unidentified Participant
Yes. Okay. So congratulations on a good set of numbers, sir. I had a few questions, sir. Firstly, if you could give me the breakup of EBITDA pattern for the different products that we sold this quarter.
Vikas Kumar Goyal
This quarter only for the stainless steel EBITDA is like 13,000 ton and the black community 8.
Unidentified Participant
Okay sir.
Vikas Kumar Goyal
15,000 ton production. And gallonized product may 7,600 tons at the rate of 6,200 from in house coil and 12,400 from outside coil. 2,000 rupees EBITDA gain. Actually prices down, High price low price. October, November, December hanging.
Unidentified Participant
Okay.
Ms. Anu Garg
Okay.
Unidentified Participant
Or I had one more question. Sorry. Many bigger players are shifting towards this DFT technology for larger diameter pipes. So do you have any plans to adopt DFT and enter the larger diameter pipe segment? Small or medium tubes.
Vikas Kumar Goyal
Carbon steel pipes. 7 inches K upper K Joe 14 inches. 10 to 20% market. Amarisavki Market go nays planning stage mayhem. In the Amari vehicle planning stage mayhem or Joe sizes. Margins come complete. So it’s dstic installation.
Unidentified Participant
Okay sir. Okay. Next year, next FY 27 28.
Ms. Anu Garg
Yeah just to highlight you know this is also in terms of a very value added. It will add a lot of value to my purchasing power of coil. Currently 1 lakh coil I am purchasing from outside market. Upon DFT I will have the requirement of let’s say around 2 lakh to 2 lakh 50000 ton of 3 lakh ton of let’s say coil requirement annually. And with that kind of procurement no I will have a cost advantage or bargaining power from the coil manufacturer procurement. Secondly FT cover market they can get approval based high margin business or yay.
Product market.
Unidentified Participant
Okay sir. Okay.
Vikas Kumar Goyal
Lehamni kesa biham dft may bahar. 7 to 8000 rupees margin. Aram Telebathe so going forward. 10 inches and above. 8 inches and above.
Unidentified Participant
Okay.
Vikas Kumar Goyal
Going forward.
Unidentified Participant
Okay. Okay. Okay. Thank you sir and all thank you.
Vikas Kumar Goyal
Thank you.
operator
Thank you sir. Ladies and gentlemen to ask a question please press star and one. Now the next question is from the line of Ruchita from TJW investment. Please go ahead.
Unidentified Participant
Hello sir. Good morning, good afternoon. That we’ve just mentioned. So accordingly what I’ve got that in pre galvanized we’ve made around 4,000 per ton. Is that right?
Ms. Anu Garg
Can you repeat the question please sir.
Unidentified Participant
On the pre galvanized oil and pipe this segment our EBITDA per ton for the quarter comes to around 4,000 per ton. Is that right? Like whatever we procure from outside and.
Ms. Anu Garg
Average basis. Yes, the number is correct.
Unidentified Participant
The number is correct. Right. But on a regular basis like you know if you don’t see all those. Things. Just to understand.
Ms. Anu Garg
So we have to see it on a two on a two factor basis. First is what what will be my EBITDA on a regular basis from my own coil and what will be the EBITDA from the coil that I procured from the market. Our regular Market wise below Q3 is an exception in terms of EBITDA number for us. So approximately 8,000 to approximately 8,000 will be our EBITDA margin from GP Pipe which will be produced from our internal coil manufacturing and from external coil which we are procuring from NMDC or other players margin approximately upward of 4000 plus O.
Unidentified Participant
Okay. And current what is the contribution given? 50. 50. And how do we see that going ahead?
Ms. Anu Garg
So currently galvanization is done approximately 40% of the sale from internal coil and you know 60% from the outside coil.
Unidentified Participant
Okay. And going forward do we want to maintain that ratio slightly?
Ms. Anu Garg
Will be maintained at 6040 level only.
Unidentified Participant
Okay, okay. Okay. So around, I think in September we had done around 7,000 EBITDA per ton. So that was kind of a one off. So we can see around 6000 EBITDA per ton in pre galvanized poison.
Vikas Kumar Goyal
5000 to 6000 in between.
Unidentified Participant
Okay, 6000. And on the ERW, sir, ERW currently is 4500 because obviously the prices were down. But earlier, you know, when we used to look at your company when it was only erw that time it was around 7,000 for which is now gone down to 5,000, 4,500 going down only. So where do we expect that on a regular basis?
Ms. Anu Garg
Correct.
Vikas Kumar Goyal
So the one reason behind the EBITDA button getting down as we already pinned it, it was the HR foil prices. But as you mentioned that earlier when we used to manufacture just HR pipe then the EBITDA used to be much higher. That was because see we started gp, we started slabs also. So the quantum of outside purchase coil got increased because of the GP production that we have started. So in my ERW black pipe segment if you see currently the ratio is around 75, 25%. 75% I manufacture from my in house coil and 25% currently we are getting through outside coin.
So a blended of that, as you rightly mentioned in Q3 it was around 4,500.
Ms. Anu Garg
But on a sustainable on a full year basis this we are expecting that this should be about 6200 to 6500.
Vikas Kumar Goyal
Rupees on a blended level.
Unidentified Participant
Okay. So normalize is 6200 to 6500.
Ms. Anu Garg
Yeah.
Vikas Kumar Goyal
On a blended level. And if you consider separate EBITDA per.
Ms. Anu Garg
Turn for these two segments. So from in house pipe you can.
Vikas Kumar Goyal
Consider around 7, 500 rupees and from outside coil you can consider around 2200 to 2500 rupees on a normal level.
Unidentified Participant
Okay, okay, okay. And CR coil scale is 15,000 is what you are looking at, right?
Vikas Kumar Goyal
Yes.
Ms. Anu Garg
SSCR. Yes.
Unidentified Participant
And for HR would be lower around 9, 10,000.
Ms. Anu Garg
So HR coil we don’t sell in.
Vikas Kumar Goyal
The market.
Unidentified Participant
But in FY28 we would. Right. Because that capacity would be higher than our PR coil.
Ms. Anu Garg
You are talking about HRAP coil of stainless steel. So. Yes, definitely. So you have this 3.5 lakh ton of greenfield phase one project go live. We plan to sell around 50% of our capacity in HREP form and 50% of our capacity in a Cold rolled form.
Unidentified Participant
Right, Right. Right.
Ms. Anu Garg
In HREP you can expect EBITDA margin of around 10,000. And in CR Bright handled coil you can expect a margin of around 15,000 plus.
Vikas Kumar Goyal
And just to add to your last question wherein we were discussing the EBITDA per ton on the black pipe segment. So as I mentioned that from the outside coil around 2000 to 2500 rupees. But once we. We once end if we set up DFT then those margins will also increase and it will go up to around 3,500 to 4,000 rupees also in. In the higher diameter segment.
Unidentified Participant
Okay, okay. Okay. And you were saying 3 50,000 the capacity is going to come. So HR coil is going to be from 50,000. It will go to around 4 10,000. Is it.
Vikas Kumar Goyal
4 70,000?
Ms. Anu Garg
Actually it will be 4 70,000.
Unidentified Participant
Because stainless steel is fully integrated HR co currently 60,000. Right? Okay. Which will become minus 16,000.
Ms. Anu Garg
16,000.
Unidentified Participant
So that will also become.
Ms. Anu Garg
Currently we are having 58,000 ton capacity which we are increasing which will be commissioned in March 2026 to 116 ton. And on top of 1 16,000 ton of hr. Sorry. 116,000 ton of SS coil we are adding 3 50,000 ton of stainless steel coil. So in total it will be approximately 4,17,000 ton of install capacity of stainless steel coil manufacturing.
Unidentified Participant
4 lakh 20,000.
Ms. Anu Garg
4 lakh 70,000. Ma’.
Unidentified Participant
Am. Okay.
Ms. Anu Garg
Out of my production will be in the range of 3 lakh 20,000 ton to 3 lakh 40,000 ton. Depends on what kind of a thickness I’m manufacturing.
Unidentified Participant
Okay. 3 lakh 40 thousand can be your PR coil production, right?
Ms. Anu Garg
Not CR man. It is HR plus CR.
Vikas Kumar Goyal
Both.
Ms. Anu Garg
Because in phase one of greenfield expansion we will sell 50 to 50. Approximately 50% in HR form and approximately 50% of bar coil in CR form.
Unidentified Participant
Right? Right. But in terms of capacity I’m asking thing right now.
Ms. Anu Garg
Capacity it will be 3 like 20,000 ton or to 3 40,000 coil. Okay. For. Okay. So in. In other way for HRAP coil will be 1 lakh 20,000 approximately. And rest 2 lakh. 2 lakh 20,000 will be CR coil.
Unidentified Participant
Exactly. That was my question. So 3 lakh 20,000. This is.
Ms. Anu Garg
This is from the perspective of selling.
Unidentified Participant
3 lakh 20. Okay. Understood. Understood. Yeah. Thank you so much.
Ms. Anu Garg
Thank you.
Unidentified Participant
Thank you. Ma’. Am.
operator
The next question is from the line of Chandrash Malpani from Nivisha investment advisory. Please go ahead.
Unidentified Participant
Hello sir. Thank you for the opportunity. About 15 days plant maintenance and similarly stainless steel side expansion. On the current Volumes that we are doing actually.
Vikas Kumar Goyal
So that’s why the pickling line is switched off and the maintenance is going on. But stainless steel production. Production.
Unidentified Participant
Okay answer. Stainless steel come cream filled expansion. You know has been delaying the duty. Part stainless steel coil. Basically. When we ramp up the sales.
Ms. Anu Garg
Or visa vis competition. Yeah. Chinese import. In terms of stainless steel will also start. You know sending their stainless steel product predominantly above 400 series only they will be playing and duplex series of stainless steel where they are master. So European block and Chinese they are having technological advantage, scale advantage and their own local government support. Similarly India maybe we are eligible. Entire expansion that we are doing is now eligible under PLI scheme to a government support indirect way may to counter any import is already being there. Secondly scale advantage. Once my brownfield goes live of 1 lakh 16,000 ton stainless steel coil.
Apart from that three 50,000 ton. Visa any other international player and predominantly Mera Joe product. European block will not be sending that product here. Because they are already into very high technology product of stainless steel. Even if government is not safeguarding us natural form PLI scale. Secondly greenfield project. Let’s say so we are already on the field. And Hamara already sales team and marketing team is being hired. They are on job to you know create a market for that additional capacity that we are coming up with. So the time in Q4 when I will be there for ready for production.
So Mera already market created. Segment.
Unidentified Participant
Okay. Okay. Got it sir. And sir, one last question on the debt. Debt position care ami as of December end. So the total debt for as on 31st December was 210 crore. Out of which 40 crores is dumb loan and 170 crore is working capital loan. Okay, got it. Thank you so much and all the best.
Vikas Kumar Goyal
Thank you.
Ms. Anu Garg
Thank you.
operator
Thank you. Sir. The next question is from the line of Pushpender Jindal an individual investor. Please go ahead.
Unidentified Participant
Thanks for the opportunity Sir. Guidance for Q4 and FY26 because we are already like two quarters. Even if we do 7500 or 6800 blended quarter one to quarter three that that is already sold at that price, right? So what is the guidance that we are looking for this year and maybe next year after all of your expansions. At least the expansion plan for this year.
Ms. Anu Garg
7,500 cap Aspaska EBITDA on a blended basis. And overall our 2026 we are confident we will be achieving upward of 260 crore of operating EBITDA on an enterprise level and weighted average by 7000 rupees EBITDA per ton on a blended basis we are comfortable achieving that number.
Unidentified Participant
So that means your volume will be very high in quarter four. So is there any guidance for quarter four.
Ms. Anu Garg
Volume?
Vikas Kumar Goyal
It may be the approximately 1 lakh blended in between.
Unidentified Participant
That’s a blended volume. Right. So I won’t go for you. Thanks.
Vikas Kumar Goyal
Because you know we, we just were putting up some numbers together for the FY26 but I think that’s actually lacking by quite a lot of difference. So we’re trying to model the business with the guidance that you’ve been given us giving us for the last two quarters.
Unidentified Participant
Thank you. All the best.
Ms. Anu Garg
Thank you.
Vikas Kumar Goyal
Thank you. Thank you.
operator
Thank you sir, the next question is from the line of Hardik Gandhi from hpmg. Please go ahead.
Unidentified Participant
Hi sir, thank you for taking the question again. Just wanted to know so right now our term loan is 40 lakhs 40 crores right? So how are we funding the new capex completely? Because we just reduced our term loan debt in the last quarter I think so Stage 1, Stage 2 Stage 3 Individual CAPEX approx.
Ms. Anu Garg
So if you see financial closure wise Q Phase 1 is already being planned and Usikai financial closure project cost wise 930 to 940 crore is approximately the cost that we are going to incur for phase one out of which 250 crore as on December is already being incurred. So balance approximately 700 crores capex to be done in next 12 months out of which we are looking at raising 600 and 650 crore rupees from the long term debt and balance will be from the internal approval. So overall project while 6650 crore will be from the external debt and 300 crore rupees approximately will be from our internal accrual right?
Unidentified Participant
And certain timelines are up now we are we are expecting commercialization by Q4 right or Q4 next year and the number should start reflecting in Q1 FY28. So and then just to understand more on our brand awareness and marketing side what are the steps being taken overall? Are we expanding into other geographies? What what is the strategy on that front?
Vikas Kumar Goyal
West central or north. Marketing strategy. Similar product to the highest brand of India.
Ms. Anu Garg
So establishment.
Vikas Kumar Goyal
May develop Karna EMR target marketing going forward.
Unidentified Participant
Like the government mentioned Northeast and North is going to be their key focus for development right? So maybe any proactive steps to expand there. And second thing is. Second thing is where what to understand more on the price differential between you, you, your product and the topmost player like maybe aplr Polo or something. Someone has a bigger brand name. What is the cost differential? Just to understand more of.
Vikas Kumar Goyal
Similarly. Abosakto Unka price difference. 7 inches. Competitiveness. Yes. Come here.
Unidentified Participant
And just the last question from my end going forward when you mentioned there will be you reply you’re planning to do something on the seamless pipe side, maybe a JV or something like that. So is it already included in the planning of stage 2 and 3 as well as to understand more from UKI? Thus seamless companies and then master seamless. And these are the two, three players. They’re kind of struggling with their top line and bottom line. So why are we foraying into that and what is keeping us confident that there will be significant demand?
Vikas Kumar Goyal
We are going with a stainless steel seamless, not the carbon still seamless first of all.
Unidentified Participant
Okay.
Vikas Kumar Goyal
And stillness still seamless demand.
Ms. Anu Garg
It is apart from what CapEx we have already announced. So it is a separate Capex that will be announced first. Secondly, product market or technology seamless or general saw, I think they are in a carbon single seamless market, not in a stainless steam market. Stainless seamless market, growth perspective, high margin, product.
Unidentified Participant
Developing, import substitution for the higher diameter.
Ms. Anu Garg
All the strategies that we are adopting. But yeah, in a way you have answered my. You answered me actually.
Unidentified Participant
Okay, understood sir. Yeah. Thank you. That’s it from my end. All the best. Thank you.
Vikas Kumar Goyal
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.
Vikas Kumar Goyal
Thank you everyone for participating in this call. We trust that we have addressed all your queries during the session. However, if there are any remaining questions, please feel free to reach out. Our investor relationship team at Goindia Advisors. Once again we extended our gratitude to all the participants for joining us today. Thank you. Have a great day.
operator
Thank you sir. On behalf of Bonaart Net Worth Capital Ltd. That concludes this conference call. Thank you for joining us and you may now disconnect your lines.
Ms. Anu Garg
Thank you all.