Venus Pipes & Tubes Limited is a manufacturer and exporter of stainless steel pipes and tubes. The company is manufacturing stainless steel tube products in two broad categories – seamless tubes/pipes and welded tubes/pipes under which five categories of products are manufactured namely, stainless steel high precision & heat exchanger tubes, stainless steel hydraulic & instrumentation tubes, stainless steel seamless pipes, stainless steel welded pipes and stainless steel box pipes.
Q2 FY26 Earnings Results
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Revenue from Operations: ₹291.54 crore, an all-time high quarterly revenue representing a 27.3% YoY growth and a 5.5% sequential growth from ₹276.41 crore in Q1 FY26.
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Export sales surged 53% YoY to ₹115.6 crore, contributing 40% of total revenue; domestic sales grew 15% YoY.
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EBITDA: ₹47.51 crore, up 16% YoY from ₹40.95 crore, though the EBITDA margin fell from 17.89% to 16.30% due to margin compression.
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Profit After Tax (PAT): ₹26.10 crore, up 10% YoY from ₹23.7 crore; PAT margin at 8.95%, down from 10.33% YoY reflecting margin pressure.
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Capacity was expanded by 1,800 MTPA, with fixed assets growing to ₹309.51 crore as capital expenditure continues.
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Operating cash flow positive at ₹68 crore in FY25, but investing cash flow remains elevated due to expansion.
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Debt-to-EBITDA ratio at 1.28x and net debt-to-equity at 0.28x, indicating manageable leverage with no promoter share pledging.
Management Commentary & Strategic Insights
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Management emphasized strong growth in both seamless and welded pipes segments and sees continuing demand momentum driven by power sector investments and export market expansions.
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Margin compression is a concern attributed to raw material cost escalation and the cost associated with capacity expansion, but improved product mix and pricing power are expected to gradually restore margins.
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The company guided for a 25% revenue growth for FY26 supported by a healthy order book of around ₹490 crore and ongoing operational efficiencies.
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Management highlighted investments in value-added and critical application products which have longer approval cycles but higher margins, anticipating margin mix improvement in FY27.
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The company continues capacity expansion and product innovation to capture growing industrial demand domestically and internationally.
Q1 FY26 Earnings Results
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Revenue from Operations: ₹276.4 crore, up 15.1% YoY from ₹240.1 crore in Q1 FY25, and a 7.1% sequential growth from Q4 FY25.
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EBITDA: ₹44.9 crore, slightly lower YoY but well-supported by export growth.
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PAT: ₹24.8 crore, down 9.8% YoY, reflecting margin pressures.
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Export revenues jumped 69% YoY to ₹103.1 crore (37.3% of total revenue).
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Both seamless and welded pipes segments recorded healthy YoY growth with 13% and 10% respectively.
To view the company’s previous earnings and latest concall transcripts, click here to visit the Alphastreet India news channel.