Hariom Pipe Industries Q4 and FY26: Growth with stronger cash flows and a solar project taking shape

Hariom Pipe Industries Limited closed FY26 with higher scale, stable operating margins, and a sharp improvement in operating cash generation. Revenue from operations rose to INR 1,667.0 crore in FY26, up 23 percent year-on-year, while EBITDA increased to INR 209.4 crore, up 19 percent, with EBITDA margin at 12.56 percent. Profit after tax came in at INR 75.8 crore, up 23 percent.

Q4FY26 was stronger on profitability. Revenue from operations was INR 507.3 crore, EBITDA was INR 63.9 crore, and PAT rose to INR 30.2 crore. The company also highlighted that value-added products accounted for 96 percent of total sales volume during the quarter and the full year.

FY26 performance: scale improved, but cash flow was the real highlight

Management described FY26 as a year focused on improving the quality of growth. The key operating metrics in the presentation support that narrative. Sales volume crossed 2.89 lakh tonnes, up 18 percent year-on-year, and blended EBITDA per tonne was reported around INR 7,258 per metric tonne for FY26.

The standout metric was operating cash flow. The company reported operating cash flow of INR 192 crore in FY26, translating to 92 percent EBITDA-to-cash conversion. It attributed this to improved working capital management, faster collections, and tighter control over inventory and receivables. Leverage also improved, with standalone net debt to EBITDA at 1.65x and debt-to-equity at 0.54x as of March 31, 2026.

Note: Financials are from the company investor presentation; margins are as presented.

Business model and product focus: value-added mix and thin steel positioning

Hariom operates a vertically integrated model that spans sponge iron, billets, HR strips, and finished products such as MS tubes and pipes, scaffolding, and a broader set of coils and galvanized products. The investor presentation lists a diversified product basket including HRPO coils, CRCA, CRFH, GP coils, and GP and GI pipes.

The company’s messaging is clear on its direction of travel. Value-added products form the bulk of volume, and management repeatedly emphasized that it prefers profitable and cash-generative growth over volume-led growth at lower margins. In the concall, the management team also pointed to steel price volatility and competitive conditions as reasons why they may not chase volumes aggressively even if capacity exists.

On distribution, the company indicated around 80 percent sales through a dealer network and about 20 percent direct B2B. Customer coverage across southern states was highlighted, with presence particularly in Telangana, Andhra Pradesh, Karnataka, Tamil Nadu, and Kerala, and an expanding footprint into Maharashtra.

Subsidiaries and capex: solar project progress and new trading arm

A major strategic development discussed in both the presentation and the concall is the 60 MW AC solar power project being executed through subsidiary Hariom Power and Energy Pvt. Ltd. The investor presentation states the project has 13 land locations identified in Maharashtra, with land acquisition completed for 8 locations covering about 123 acres out of a 210-acre requirement. Capacity tied up is stated at 38 MW out of 60 MW, and work commenced at 6 locations.

As of March 31, 2026, the subsidiary reported equity infused of INR 22.90 crore, CWIP of INR 0.89 crore, and advances given of INR 38.85 crore. On the concall, management stated the total project cost is around INR 241 to 245 crore, with a bank term loan around INR 195 crore. It also stated that the listed company’s equity contribution into the project is expected to be around INR 25 to 30 crore, with the remaining supported by a central government capital subsidy.

Management also indicated that, out of the 38 MW under construction, 10 MW is expected to commence production in the next month from the concall date. The company stated it expects a tariff of around INR 3.21 per unit, but declined to quantify FY27 revenue until operations begin and ramp-up becomes visible.

In addition, the company incorporated Metal Mart Pvt. Ltd. on January 22, 2026 as a trading arm for metals, steel, and allied products. The investor presentation states there were no commercial operations during the period. On the concall, management said GST registrations are in process in Maharashtra and also in southern states, after which operations are expected to start.

What management guided for FY27: volume ambition, but with margin discipline

FY27 guidance in the concall remained tied to market conditions and profitability. Management stated it has capacity to target around 30 percent volume growth but will not compromise profitability. In a later response, it provided a more specific volume band of about 3.5 to 3.6 lakh tonnes for FY27, subject to market conditions.

On profitability, management pointed to FY26 blended EBITDA per tonne of around INR 7,200 and Q4 blended EBITDA per tonne around INR 7,800. It expressed confidence in maintaining these levels, but also cautioned that EBITDA per tonne is sensitive to steel price fluctuations and costs such as logistics, power, gas, and other inputs. It also described the 12.5 percent margin range as sustainable.

Key takeaways

Hariom Pipe’s FY26 results show a company that is scaling volumes and revenue while improving cash generation and leverage metrics. The presentation’s operating cash flow jump to INR 192 crore and the 92 percent conversion metric are central to the FY26 story.

FY27 will likely be judged on whether the company can deliver its stated volume ambition of 3.5 to 3.6 lakh tonnes without sacrificing margin discipline, and whether the solar subsidiary can start commissioning capacity as indicated. Alongside this, the temporary disruption at the Tamil Nadu unit underlines the need for consistent regulatory compliance and operational resilience, themes that remain relevant as the company expands.