Sambhv Steel Tubes Eyes Rs 4,500-Crore Revenue By FY28 On Capacity Expansion
The steel pipes and tubes producer is targeting Rs 2,200-2,300 crore revenue in FY26.
(Representative image: Freepik)
Sambhv Steel Tubes plans to double its revenue to approximately Rs 4,500 crore by FY28.
According to the company’s MD and CEO, Vikas Goyal, Sambhv Steel Tubes is on track to achieve revenue between Rs 2,200 and Rs 2,300 crore in FY26. This is based on the company's Q1FY26 revenue of Rs 558 crore, he said in a conversation with NDTV Profit on Friday.
“Our Q1FY26 revenue is Rs 558 crore. Multiplying by 4 is equal to Rs 2,200 crore. So, it is around Rs 2,200 to Rs 2,300 crore. In FY28, we will double it. We are increasing our capacity of stainless steel to 200% and pipe capacity by 50%,” he said during a conversation with NDTV Profit.
On being asked about a topline of Rs 4,500 crore by FY28, the CEO answered in the positive.
A key strategy is to significantly alter the company's product mix in favour of stainless steel. The company is primarily engaged in the production of stainless steel pipes and tubes.
"We will have 30% of stainless steel in FY26, next year it will be 40%, and in FY28 it will be 50% of stainless steel," Goyal explained.
The key driver for this growth will be a new 1.2 million-tonne plant in Kesda, Chhattisgarh. The project will be executed in three phases, with the first phase scheduled to commence by the end of FY27. This initial phase will add 1,80,000 tonnes of pipes and tubes and an equal amount of stainless steel capacity.
Bikash Agrawal, the Chief Strategy Officer, said the capex for the plant will be funded with a mix of debt and internal accruals. He highlighted that the company is currently "virtually debt-free" and generates a free cash flow of around Rs 20 crore per month.
“At an enterprise level, our debt will always be below 0.5 of our equity base,” Agrawal confirmed. This would cap the total debt at under Rs 500 crore.
Addressing questions about profitability, Goyal said the company’s backward integration model provides a crucial advantage. Located in the mineral-rich state of Chhattisgarh, it has easy access to key raw materials like iron ore and coal, insulating it from price volatility.
Goyal added that India’s infrastructure growth, projected at 8–10% annually and the push to reduce stainless steel imports will lead to a lot of growth over the next three years.
Shares of Sambhv Steel Tubes settled flat at Rs 137.5 apiece, up 0.7%, on the NSE on Friday, while the benchmark Nifty50 ended at 24,837, down 0.9%.
