Steamhouse coal trading reaches 27% of FY26 revenue after Sanjoo

Steamhouse India Limited derived Rs 132.327 crore, or 26.92% of revenue from operations, from coal trading in Fiscal 2026. The line produced Rs 19 lakh in Fiscal 2024 and rose after Steamhouse began selling coal to group company Sanjoo Dyeing under arrangements that commenced on April 1, 2025.

How large did Steamhouse coal trading become in Fiscal 2026?

Coal trading became Steamhouse’s second-largest reported revenue offering in Fiscal 2026, producing Rs 132.327 crore of the company’s Rs 491.511 crore revenue from operations. Its 26.92% share ranked below generation and distribution of steam, which contributed Rs 256.255 crore, or 52.14%, during Fiscal 2026.

The category rose from Rs 76.245 crore, or 19.30% of revenue from operations, in Fiscal 2025. The increase of 7.62 percentage points in coal trading’s revenue share coincided with an 8.42-percentage-point decline in the share of steam generated and distributed by Steamhouse, from 60.56% in Fiscal 2025 to 52.14% in Fiscal 2026.

The change was more pronounced from Fiscal 2024, when coal trading generated Rs 19 lakh and represented 0.01% of revenue from operations. Steamhouse states that coal bought in Fiscal 2024 was primarily used for in-house consumption, while excess coal is generally sold in the open market, making the later sales a material addition to the revenue mix.

Why did Steamhouse coal trading rise after the Sanjoo arrangement?

Steamhouse attributes the Fiscal 2026 increase in coal trading primarily to sales in Sachin to Sanjoo Dyeing after Steamhouse stopped operating the group company’s steam-generation facilities. Sanjoo Dyeing owns the relevant steam-generation assets, while Steamhouse’s current role includes operating and maintaining its boilers and purchasing steam for distribution to industrial customers.

The commercial relationship has changed over several periods. In Fiscal 2022, Steamhouse purchased steam from Sanjoo Dyeing under a right-of-use permission and resold it. Between Fiscal 2022 and Fiscal 2024, a leave-and-license agreement allowed Steamhouse to operate Sanjoo Dyeing’s facilities directly, meaning steam from those facilities was sold directly by Steamhouse and reducing purchased-steam volumes from Sanjoo Dyeing.

Beginning in Fiscal 2025, Steamhouse entered an operation and maintenance, or O&M, agreement after the leave-and-license agreement ended. Under the O&M model, Steamhouse ceased operating Sanjoo Dyeing’s steam-generation facilities, began buying steam from Sanjoo Dyeing for resale, and also purchased steam through an arrangement in Dahej GIDC Phase 1.

The coal-sale arrangements commenced on April 1, 2025, have a stated three-year term, and operate alongside the O&M agreement. Steamhouse says it has sold, and expects to continue selling, coal to Sanjoo Dyeing at prevailing market prices and on an arm’s-length basis, meaning the company states the transactions are priced on terms applicable between independent parties.

How did the Sanjoo change alter Steamhouse’s revenue mix?

Steamhouse’s revenue mix shifted from near-total dependence on self-generated steam in Fiscal 2024 to a mix that included purchased steam and coal trading in Fiscal 2026. Generation and distribution of steam represented 99.19% of Fiscal 2024 revenue from operations, compared with 60.56% in Fiscal 2025 and 52.14% in Fiscal 2026.

Purchase and distribution of steam grew from Rs 2 lakh in Fiscal 2024 to Rs 77.891 crore in Fiscal 2025 and Rs 86.997 crore in Fiscal 2026. Together, purchased-steam distribution and coal trading represented 44.62% of Fiscal 2026 revenue from operations, compared with 19.31% in Fiscal 2025 when the two lines contributed 19.71% and 19.30%, respectively.

This mix reflects two different activities. Steamhouse purchases steam, often produced as a by-product of another entity’s operations, and distributes it through its pipeline network in Dahej GIDC Phase 1 and Sachin GIDC. Coal trading, by contrast, concerns the sale of excess coal acquired in bulk, including the disclosed sales to Sanjoo Dyeing.

Nitrogen was a smaller new revenue line. Steamhouse began revenue from the separation, compression and distribution of nitrogen on February 1, 2025, recording Rs 57.7 lakh in Fiscal 2026, or 0.12% of revenue from operations, after Rs 9 lakh in Fiscal 2025.

What remains Steamhouse’s core operating business?

Generation and centralized distribution of industrial gases remains Steamhouse’s primary business offering, despite coal trading accounting for more than one-quarter of Fiscal 2026 revenue. Steamhouse operated seven community steam boilers, six owned and one leased, in Gujarat as of July 31, 2026, with combined installed steam capacity of 345 tonnes per hour.

The 345-tonnes-per-hour capacity translates to annual installed capacity of 2,185,920 tonnes under Steamhouse’s assumptions of 330 operating days and 80% boiler efficiency. Its steam facilities include Vapi Phase 1, the Vapi waste-to-energy unit, Ankleshwar Phases 1 and 2, Sarigam, Nandesari and Panoli, while its Sachin GIDC and Dahej GIDC Phase 1 operations distribute purchased steam without land requirements.

Steamhouse generates steam using coal, textile waste and refuse-derived fuel, then supplies it to industrial customers through its pipeline network. The company also uses pressure swing adsorption nitrogen generators, which separate nitrogen from atmospheric air before compression and pipeline distribution, at its Ankleshwar nitrogen facility with capacity of 350 normal cubic metres per hour.

Steamhouse’s stated operating-expense measures include bulk coal purchases, reuse of boiler bed material and variable-frequency drives. Variable-frequency drives control fan and pump speeds to optimise auxiliary power consumption, while bulk purchasing supports both fuel procurement for boilers and the availability of excess coal for the trading line.

What must hold for coal trading to remain material to revenue?

Coal trading’s continued materiality depends on the three-year coal-sale arrangement with Sanjoo Dyeing, which began on April 1, 2025, continuing to produce sales at prevailing market prices. Steamhouse does not disclose coal volumes, the value of sales to Sanjoo Dyeing, or Sanjoo Dyeing’s share of the Rs 132.327 crore Fiscal 2026 coal-trading revenue.

The revenue classification also depends on the operating model for Sanjoo Dyeing’s steam facilities. The current O&M structure separates Steamhouse’s boiler operation and maintenance role from Sanjoo Dyeing’s asset ownership, while Steamhouse purchases steam for customer distribution and sells coal to the group company; a different arrangement could alter revenue among generated steam, purchased steam and coal trading.

Steamhouse has disclosed further purchased-steam expansion rather than a forecast for coal trading. In April 2026, it entered five-year steam-purchase agreements with chemical companies in Dahej Special Economic Zone and Haldia, and expected both operations to commence within 12 months from the date of its red herring prospectus, although it provided no revenue estimate for either project.

Conclusion

Steamhouse’s Fiscal 2026 revenue mix changed because coal trading rose from Rs 19 lakh in Fiscal 2024 to Rs 132.327 crore, representing 26.92% of revenue from operations. The disclosed driver was the revised Sanjoo Dyeing relationship, which replaced direct operation under a leave-and-license structure with an O&M model involving coal sales and purchased-steam distribution.

The next disclosed developments are the continuation of the coal-sale arrangement through its stated three-year term and the planned start of purchased-steam operations in Dahej Special Economic Zone and Haldia. The unresolved measure is concentration within coal trading, because Steamhouse identifies Sanjoo Dyeing as the primary reason for growth but does not quantify that customer’s contribution to Fiscal 2026 coal-trading revenue.