Vibhor Steel Q1FY27: consolidated PAT -39% YoY to ₹1.9 Cr as margins compress
PAT -38.58% YoY · revenue +27.16% · margins compressing
₹293.69 Cr
+27.16% YoY
₹1.93 Cr
-38.58% YoY
0.66%
-0.7pp YoY
₹1.02
Vibhor Steel Tubes' Q1 FY27 consolidated (=standalone) revenue rose 27.2% YoY to ₹293.69 Cr but net profit fell 38.6% YoY to ₹1.93 Cr (EPS ₹1.02 vs ₹1.66), and both metrics also declined sequentially — revenue -12.4% and PAT -25.1% QoQ off a seasonally strong Q4. There are no exceptional items in either the current or year-ago quarter, so the decline is like-for-like rather than a base-effect distortion. No formal Street estimates for this small-cap were found in a search, so vs-consensus cannot be assessed; management has also given no verifiable segment-level target for this quarter — the FY26 concall guidance of 25-30% revenue from new products (transmission towers/poles) cannot be checked against the filing since the company reports only one operating segment (Ind AS-108), so whether that mix target is on track remains unconfirmed.
Q1 FY-2027 vs prior quarters
The profit decline is a margin story, not a volume one. Net margin compressed to 0.66% of revenue from 1.36% a year ago and 0.77% last quarter, even though the underlying cost structure (raw material plus inventory movement at ~87.5% of revenue) looks broadly similar to prior quarters based on the disclosed EBITDA-level profit of ₹12.37 Cr (~4.2% of revenue, roughly flat with the 4.19% OPM reported last quarter). The squeeze instead shows up below EBIT: finance costs of ₹3.93 Cr and depreciation of ₹5.82 Cr consume nearly all of the operating profit, leaving a wafer-thin PBT margin of just 0.89% (₹2.62 Cr) before a 26.2% effective tax rate further reduces it to PAT. This is a structurally low-margin ERW/GI pipe manufacturing business where small swings in fixed costs relative to revenue move PAT sharply.
The stock went into the print at ₹108.01, down 2.9% over the past month of trading.
Management is optimistic about the short-to-medium term, targeting a 25-30% revenue contribution from new products like transmission line towers and poles in the current year (FY26), with an aim to reach this target within one to two years. While precise EBITDA margins for these new products are still evolving and expe
The quarter's one notable corporate action — incorporation of wholly-owned subsidiary Viyom Steel Infra Pvt Ltd on 17 June 2026 — triggered first-time consolidated reporting but has zero P&L impact this quarter since its costs are capitalised as CWIP; it is not a driver of the numbers reported here. No management press release was available to cross-check the company's own framing of the quarter against these figures.
W1
New-product revenue mix (transmission towers/poles) vs management's 25-30% FY27 target — unverifiable this quarter as the company discloses only one operating segment
W2
Margin trajectory: NPM has fallen for two consecutive quarters (1.36% → 0.77% → 0.66%) — watch whether finance-cost/depreciation drag eases
W3
Subsidiary Viyom Steel Infra's transition from CWIP to operations, and whether the ~₹10 Cr FY27 capex is funded via internal accruals as guided, with no new debt