Order book revival masks weak Q1 execution; core ops softened by treasury gains

Revenue -4.7% YoY, -14.8% QoQ despite 96k tons dispatch (vs 105-110k normal). EBITDA down 23% QoQ.

Delivered Q1 PAT ₹266.4 Cr; ₹175 Cr other income (80% above ₹97 Cr historical avg) inflated results. Adjusted operational PAT much softer.

Order book confirmed at ₹1,709 Cr vs ₹1,303 Cr Q3. Mix composition not independently verified in results.

Q1 EBITDA per ton ₹19,166 (higher than prior ₹10-15k range cited). Dependent on order book execution; no floor given.

Not contradicted by results; supports volume guidance of 410-430k tons achievable.

Oil sector + export orders now 64% of ₹1,709 Cr (vs <40% historically); ₹714 Cr from ONGC/Oil India, ₹340 Cr North America. Material margin upside.

Exports rebounded to 22% of Q1 dispatches (vs <10% FY26, <5% FY24-25, 25% in FY23). U.S. drilling revival driving demand.

Scheme withdrawn (per regulatory filing). No new cash utilization plan disclosed. Investor uncertainty on capital allocation.

Finishing line capex (₹107 Cr orders, ₹89 Cr paid) remains in limbo; 1.5 years of delays. Nagothane hot mill upgrade not started.

Will not comment on specific per-ton number due to product mix variability. Margin maintained or improved. Volume guidance 410-430k tons annually (105-110k per quarter).

Orders placed (₹107 Cr), ₹89 Cr paid. Waiting for completion. Will give update next quarter. Not pursued aggressively 1.5 years due to soft market.

Scheme withdrawn. No update.

Wholly owned subsidiary, consolidated line-wise. Contribution immaterial; 8-10k tons capacity will limit profitability impact. Not separately stated.

Not relevant to financial performance. It was not done.

Yes, should positively impact as oil & gas supplier. We have max size range, basket of value-added products, capacity to supply to oil & gas in India.

70-75%. Active capacity 550k tons; dispatch 410-430k tons/year.

ERW is small segment (<7% EBITDA). Mix of API oil pipes (high margin) and IS water pipes (low margin). Q1 mix skewed to lower-margin water segment.

Q1 improvement from product mix. Inventory MTM more relevant in Q4 FY26. This Q1, MTM was not a material factor.

Scheme withdrawn. Already intimated exchanges.

Yes, meaningful improvement. Order book composition (64-65% high-margin) transparently displayed shows why book is different from past years.

Entirely customer absorbs. We do not absorb cost incidence.

Cannot control duty renewal. Can only petition govt. Duty extended interim Oct-Jan; encouraging sign. Will not predict renewal or rate.

Correct. Duty 2016-2021, 2021-Oct 2026, temp extended Oct 26-Jan 27 pending review.

Yes, petitioned that all products should be covered. Government to decide.

Not started. Focusing on Telangana finishing line first. Will get back after.

₹3 Cr incidence in Q4 FY26. Regular increments undertaken. No other cost inflation.

Cannot give 6-month/1-year forward guidance; operate on short-cycle 3-4 month order book. U.S. exports up due to drilling revival; domestic focus remains primary.

Selling price is higher. Customers absorb tariff burden.

INR depreciation benefits us. Captured orders from competitor disruption. Better position now; can maintain order book.

Baseline: 105-110k per quarter post-April gas outage resolution. No explicit revenue target; volume-driven.

Q1 ₹19.2k/ton (above range); but inflated by low-volume production. Guidance assumes 410-430k volume achieved and 64% high-margin order book executed.

1.5-year delay; market softness cited as reason. Revival in order book will accelerate timeline (stated intent but no deadline).

Current duty extended interim to Jan 2027. Renewal decision pending govt review. Loss of duty could reduce competitiveness vs. imports by 10-20% cost.

Finishing line Telangana capex (₹107 Cr orders, ₹89 Cr paid) delayed 1.5 years. No commissioning date; Nagothane hot mill not started. Limits capacity and premium product ramp.

Demerger scheme withdrawn post-announcement. No alternative cash utilization plan disclosed. Shareholders unclear on deployment of balance sheet cash.

Company operates 3-4 month order book deliberately (not a norm). Limits forward visibility. Q1 dispatch 96k vs 105-110k normal shows near-term volatility from supply disruptions (gas outage).

Middle East tensions, tariff uncertainty (U.S. duties on steel remain high). U.S. export orders dependent on drilling cycle and trade policy stability.