Steel the Show! Hariom Pipe Industries’ Value-Added Strategy Drives 35% Q1 Sales Boom

Unknown Apr 02, 2026 1,050 Views

Hariom Pipe Industries Ltd has posted a healthy 35% year-on-year growth in total sales volume in Q1 FY26 at 78,221 metric tonnes. The value-added products (VAP) of the company, which now account for 96% of total sales volume, are the prime mover behind the healthy growth, which indicates Hariom P...

Management at the firm highlighted that the strong sales momentum was supported by strong demand for its expanded product basket, such as the new cold rolled and galvanised pipes verticals. Such additions not only expanded the firm's product base but have also experienced improved price realization and operating leverage.

Q1 FY26 total sales volume: 78,221 MT, 35% YoY.

Value-added products (VAP): Represented 96% of sales, showing the firm's shift towards higher-margin segments.
Revenue and profitability: Net sales for the period ended March 2025 were ₹399.7 crore (up 20.8% YoY), net profit was ₹17.24 crore and EBITDA was ₹49.29 crore.
Realization enhancement: Average realization value up by 5-7% quarter-on-quarter, driving margins irrespective of market fluctuations.
Capacity utilization: The company aims to achieve maximum utilization of its 0.4 million tonnes finished steel capacity by FY26.
Positive cash flow: Recorded a positive operating cash flow of ₹5,288 lakh in H1 FY25, a reversal from a year ago.
Future outlook: The management expects to accomplish further 30% volume growth in FY26, driven by persistent demand and capacity expansion.

The company management is optimistic about sustaining this growth trajectory, with improved market conditions and ongoing expansion activities being cited as the reasons. Hariom Pipe's emphasis on value-added products and operational excellence positions the company well for the coming quarters.

Source: Thomson Reuters, NSE, Company Announcements

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