Hariom Pipe consolidated PAT falls 30% YoY as TNPCB shutdown hits Perundurai output
Consolidated revenue came in at ₹429.18 Cr, down 6.9% YoY and 15.4% QoQ, with PAT of ₹16.60 Cr, down 29.7% YoY and 44.9% QoQ; EPS fell to ₹5.36 from ₹7.62 a year ago. Standalone tells a similar story (PAT ₹17.36 Cr, -26.5% YoY), so the decline isn't a subsidiary-level distortion. The driver was almost entirely operational: the Tamil Nadu Pollution Control Board ordered the Perundurai unit shut on April 2, 2026, a suspension that covered the whole reporting quarter — TNPCB lifted it only on July 13, 2026, after June 30 quarter-end.
Margins compressed on both lines: NPM fell to 3.87% from 5.10% YoY (5.83% QoQ), and OPM (PBT + finance costs + depreciation − other income, over revenue) slipped to roughly 11.6% from 12.49% YoY (12.59% QoQ). Finance costs (₹13.42 Cr) and depreciation (₹15.43 Cr) were essentially flat versus a year ago, so the lower plant utilization from the closure fell straight through to operating leverage — fixed costs stayed put while revenue shrank.
Univest's July 8 pre-result note (a trailing-growth model, not formal broker consensus) had pegged Q1 FY27E revenue at ₹555-639 Cr and PAT at ₹31-40 Cr; the actual print missed both ranges by roughly 23-33% on revenue and 46-58% on PAT, consistent with a closure the model didn't price in. Against management's own FY27 target — reiterated on the Q4 FY26 call — of 30% volume growth and EBITDA/tonne of ₹7,200-7,800, this quarter starts the year well off pace, though the shortfall traces to a now-resolved regulatory closure rather than demand or pricing. No fresh management press release accompanies this filing; the only company commentary in the results themselves (note 3) attributes the hit squarely to the Perundurai suspension.
Two developments outside the P&L point forward: promoters paid in ₹12.86 Cr (25% of ₹51.45 Cr) toward 15 lakh convertible warrants allotted July 27, 2026, and Hariom Power's 5 MW solar project was commissioned and connected to the MSEDCL grid on July 8, 2026 — delivering on the 'solar revenue to commence soon' line from the last call, though it isn't in this quarter's numbers yet. Metal Mart, the new metal-trading subsidiary, remains at zero revenue. COO Sanjay Bhansali's resignation, disclosed a day before these results (August 11), adds a leadership question alongside the operational one. With Perundurai back online since July 13, Q2 FY27 is the quarter to watch for whether volumes recover toward the pace needed to hit FY27 guidance.
