- Jindal SAW banking on export-driven order book for growth
- Welspun focusing on strong demand from water transportation, energy
India’s leading steel pipe and tube makers reported a mixed performance in Q1FY’26. The financials were lower on a quarterly comparison for all major mills, barring Welspun Corp., which showed a growth in EBIDTA. APL Apollo, Welspun and Man Industries showed improved financials on an annual basis, while others were in the red zone.
Performance highlights – Q1FY’26
1. Jindal SAW : The company generated revenue of INR 4,103 crore from operations in Q1, down 19% q-o-q and 18% y-o-y compared to INR 5,067 crore in Q4FY’25 and INR 4,985 crore in Q1FY’25.
EBITDA: The company’s earnings before interest, depreciation, tax and amortisation (EBIDTA) stood at INR 688 crore in Q1, which was down by 9% q-o-q and 22% y-o-y.
PAT: Profit after tax (PAT) was INR 416 crore, sharply higher q-o-q due to a low base in Q4 (INR 87 crore) but flat y-o-y (INR 416.4).
The company continues to highlight its strong export-driven order book, with nearly one-fourth of orders coming from overseas markets. Order visibility over the next 9–12 months remains healthy, though execution and margin recovery will be the focal points. During Q1 FY2026, the Company reported an order book of around $ 1,305 million for iron and steel pipes and pellets. Iron and steel pipes account for about $1,295 million and pellets for around $10 million.
2. APL Apollo: Revenue of INR 5,170 crore was generated out of operations in Q1, down 6% q-o-q compared to INR 5,508.6 crore in Q4FY’25. However, it was slightly higher by 4% y-o-y against4,974.3 crore in Q1FY’25.
The company reported an EBIDTA of INR 372 crore in Q1, lower by 10% q-o-q (INR 413.7 crores), but higher by 23% y-o-y (INR 301.6 crores).
The company’s net profit at INR 237 crore in Q1 was down by 19% q-o-q against INR 293.1 crores in Q4, but up 23% y-o-y compared with INR 193.2 crores in Q4 of the previous fiscal year.
The company’s sales declined by around 7% q-o-q to 794,000 tonnes (t) in Q1 FY 2026 as compared with 850,000 t in the previous quarter. However, on an annual comparison, the same was higher by 10% against the 721,000 t sold in Q1FY’25.
3. Welspun Corp.: Revenue generated out of operations stood at INR 3,587 crore in Q1, down 10% q-o-q against INR 3,967 crore in Q4 FY2025. However, it rose by 13% y-o-y from INR 3,180 crore in Q1FY’25.
EBITDA: The company posted an EBIDTA of INR 560 crore in Q1, rising 12% q-o-q against INR 502 crores in Q4 and 35% y-o-y against INR 416 crores in Q1 of the previous fiscal year.
Management outlook: The company continues to emphasize its diversified order book valued at ~INR 19,000 crore across line pipes, DI pipes, and stainless steel products. Strong demand from the water transportation and energy sectors is expected to support steady EBITDA growth despite cyclical revenue swings.
4. Surya Roshni: Total revenue of the company stood at INR 1,605 crore in Q1, fell 25% q-o-q in comparison to INR 2,146 crores. On an annual comparison it was down by 15% as against INR 1,893 crores in Q1 FY2025.
The company recorded a slump in EBITDA margins by 61% at INR 83 crores in Q1 as compared to INR 211 crores in Q4 FY2025. Meanwhile, the same was lower by 48% y-o-y against INR 159 crores in Q1 FY2025.
PAT dropped by 74% to INR 34 crore in Q1 as compared to INR 130 crores in Q4 FY2025. On similar lines, the decline was about 63% against INR 92 crores in Q1 of the preceding fiscal.
A 60,000 tonne per annum (tpa) Direct Forming Technology (DFT) mill at Anjar is underway under the flagship of Surya Roshni, and is scheduled for commissioning by March–April 2026
5. Man Industries: Total revenue from operations was at INR 742 crore in Q1, down 39% q-o-q compared to INR 1218.5 crores in Q4 and about 1% against INR 748.7 crores in Q1 of the previous fiscal.
The company recorded an EBITDA of INR 81 crore in Q1, down 41% q-o-q in comparison with INR 136.6 crores in Q4 FY2025. On the contrary, it was higher by around 39% y-o-y as compared to INR 57.9 crores.
PAT stood at INR 27.6 crore in Q1, down 60% q-o-q against INR 68.2 in Q4, but up 45% y-o-y compared with INR 19.1 crores in Q1 of the previous fiscal.
The company had an order book of around INR 3,200 crore and a bid pipeline of INR 15,000 crore. Execution over the next 6–12 months is expected to support revenue visibility. Furthermore, there is an ongoing greenfield project in Jammu, which is expected to be commissioned in the latter half of FY 2025.
Outlook:
The pipes and tubes manufacturers are expecting demand to improve in the near term, gaining support from government spending in both civil and infrastructure construction segments. APL Apollo and Welspun are supported by strong order books and product mix, while Jindal SAW is focusing on export growth and margin recovery. Man Industries and Surya Roshni are looking forward to reaping benefits from their robust order books and bid pipeline despite quarterly variability and their expansion projects.
Leave a Reply