Hariom Pipe Industries Limited: Navigating Growth with Strategic Focus and Sustainability in Q3 & 9M FY26

Hariom Pipe Industries Limited, a prominent player in India's steel sector, has demonstrated steady execution and operational consistency in its Q3 and nine-month FY26 performance, despite the dynamic market environment and fluctuations in steel prices. The company's continued focus on value-added products, disciplined working capital management, and stable plant operations have been instrumental in maintaining consistent margins and profitability.

For the nine months ended December 31, 2025, Hariom Pipe reported a robust sales volume of approximately 2.07 lakh tons, marking a significant 21% year-on-year growth. Revenue from operations also saw a healthy 21% increase, reaching INR1,159.7 crore. The company's EBITDA stood at INR145.5 crore, with a commendable EBITDA margin of 12.55%. This strong performance was largely driven by its value-added product mix, which contributed an impressive 95% to 97% of the total revenue. Profit before tax for the nine-month period was INR62 crore, while profit after tax came in at INR45.6 crore.

Operational Excellence and Strategic Product Mix

From an operational standpoint, the galvanized pipes and coils segment continues to be the primary revenue driver, with both the Telangana and Tamil Nadu units performing steadily. The integrated steel plant in Telangana has achieved near-optimal utilization, ensuring overall plant performance remains stable and efficient across all units. The company's diversified product basket includes Sponge Iron, MS Billets, HR Strips, MS Tubes & Pipes, Scaffolding, and various types of coils and pipes like HRPO, CRCA, CRFH, GP, and GI. This wide range caters to diverse end-user industries such as automotive, construction, infrastructure, and consumer goods.

Hariom Pipe's strategic emphasis on the thin steel segment (0.3–2.5 mm thickness), which accounts for approximately 15% of India's total steel consumption, has allowed it to carve out a commanding 13% market share in FY25. This focus enables the company to address fragmented, high-volume demand in underserved segments while avoiding direct competition with producers of heavier pipes.

Advancements in Renewable Energy and Future Growth

A significant strategic move for Hariom Pipe is its advancement into renewable energy solutions. The company has successfully developed innovative, high-strength, pre-galvanized tubular sections for solar structures, replacing traditional HR steel channels. It has also established strategic Original Equipment Manufacturer (OEM) relationships to deliver value-added products tailored for the renewable energy sector. These initiatives are expected to enhance efficiency, reduce steel weight, improve durability, and offer innovative designs for solar infrastructure, positioning Hariom Pipe to capitalize on the booming renewable energy market.

Further solidifying its commitment to sustainability, Hariom Pipe has received a Letter of Award for a 60 MW solar power plant with the Maharashtra State Electricity Board. This project, under its wholly-owned subsidiary Hariom Power and Energy Private Limited (HPEPL), has an 18-month duration with a 25-year Power Purchase Agreement. The company expects 35 MW capacity to commence operations by April 2026, with the balance by August 2026. This initiative is set to enhance the company's ESG profile, drive decarbonization, and contribute to its long-term profitability.

Market Expansion and Integrated Model

Hariom Pipe's integrated operations model, which includes backward integration from sponge iron to finished pipes, delivers significant cost efficiencies and stringent quality control. This vertical integration, coupled with an extensive network of over 900 dealers, facilitates deep market penetration into both rural and urban areas, establishing a resilient and diversified sales infrastructure. The company has a strong presence in Southern and Western India, with plans to expand into new geographies.

To explore new markets and product lines, Hariom Pipe has incorporated Metal Mart Private Limited as a subsidiary for trading steel and allied products. This strategic move allows the company to test demand in Western and Northern India without immediate large-scale capital expenditure, providing transparency by separating trading margins from manufacturing margins. The subsidiary is expected to commence operations by March end or early April 2026.

Looking ahead, Hariom Pipe remains confident in its growth trajectory. Management expects EBITDA per ton to remain between INR7,000 to INR8,000 and anticipates approximately 30% volume growth in the next financial year (FY27). The company projects Q4 FY26 sales volume to be between 90,000 to 95,000 tons, with average pricing around INR54,500 to INR55,000 per ton. With improving demand visibility, a strong product mix, and ongoing strategic initiatives, Hariom Pipe is well-positioned for sustained growth and to conclude the financial year on a strong note.