Steamhouse India Limited shifted 44.62% of revenue beyond generation

Steamhouse India Limited derived 44.62% of Fiscal 2026 revenue from operations from coal trading and purchased-and-distributed steam, compared with 0.01% in Fiscal 2024. These two activities generated Rs 219.324 crore in Fiscal 2026, changing the composition of growth even as steam generation remained the largest individual offering at 52.14% of revenue.

Why did Steamhouse revenue mix shift beyond steam generation?

Steamhouse shifted its revenue mix because coal trading and purchased steam grew from negligible Fiscal 2024 levels to 44.62% of Fiscal 2026 revenue from operations. Coal trading generated Rs 132.327 crore, or 26.92% of Fiscal 2026 operating revenue, while purchase and distribution of steam generated Rs 86.997 crore, or 17.70%. Together, the two offerings accounted for Rs 219.324 crore of Steamhouse's Rs 491.511 crore revenue from operations.

The shift was already evident in Fiscal 2025 rather than arising solely in Fiscal 2026. Purchased steam contributed Rs 77.891 crore, or 19.71%, and coal trading contributed Rs 76.245 crore, or 19.30%, of Fiscal 2025 revenue from operations of Rs 395.106 crore. In Fiscal 2024, purchased steam generated Rs 0.002 crore and coal trading Rs 0.019 crore, with the two lines together representing 0.01% of Rs 291.710 crore in operating revenue.

Steamhouse describes coal trading as an invoice-only activity associated with procurement of coal, its primary boiler fuel. During Fiscal 2026 and Fiscal 2025, Steamhouse also supplied coal to group companies Sanjoo Dyeing & Printing Mills Private Limited and Sanjoo Prints Private Limited. The disclosure therefore identifies related-party transactions as part of the context for coal trading, although it does not quantify their revenue contribution.

How did Steamhouse's steam-generation business change?

Steam generation remained Steamhouse's largest offering in Fiscal 2026, but its share of revenue fell 47.05 percentage points from Fiscal 2024. Generation and distribution of steam produced Rs 256.255 crore in Fiscal 2026, compared with Rs 239.286 crore in Fiscal 2025 and Rs 289.366 crore in Fiscal 2024. Total revenue from operations increased 68.49% over the Fiscal 2024 to Fiscal 2026 period, so the falling generation share reflects faster expansion of other offerings.

Steamhouse's generation network remained substantial as of July 31, 2026. It operated seven community steam boilers in Gujarat, comprising six owned boilers and one leased boiler, with aggregate installed capacity of 345 tonnes per hour. The company stated annual installed capacity of 2,185,920 tonnes, calculated using 330 operating days and 80% boiler efficiency, while its steam-generation revenue came from facilities including Vapi, Ankleshwar, Sarigam, Nandesari and Panoli.

The distribution asset base can support both generated and purchased steam. Steamhouse's installed pipeline network measured 57,041 metres at March 31, 2026, compared with 47,526 metres at March 31, 2025 and 41,539 metres at March 31, 2024. Steamhouse purchases steam from third-party generators in Dahej GIDC Phase 1 and Sachin GIDC, then distributes it to customers through that pipeline network rather than generating all distributed steam itself.

What does the change mean for costs and coal exposure?

The change means a larger portion of Steamhouse's reported revenue is associated with coal procurement and resale or with third-party steam supply, rather than solely with production from its own boilers. Cost of goods sold reached Rs 355.498 crore in Fiscal 2026 and represented 80.11% of total expenses, compared with 78.94% in Fiscal 2025 and 71.89% in Fiscal 2024. Steamhouse defines cost of goods sold as materials consumed, purchases of stock-in-trade and inventory changes in finished goods, work-in-progress and stock-in-trade.

Coal remains Steamhouse's primary raw material for boiler-based steam generation, although it also uses plastic waste and textile chindi and is exploring greater use of agro-waste and refuse-derived fuel. Steamhouse generally buys raw materials through purchase orders rather than long-term supply contracts. Its customer agreements contain a variable steam-price component linked to coal prices, which the company says substantially mitigates cost increases, but it discloses that a timing lag may occur before higher coal costs are passed through.

Steamhouse predominantly purchases coal from Indian importers, whose supplies are predominantly sourced overseas, particularly from Indonesia. The company also makes high-seas purchases, meaning purchases of coal while in transit before entry into India, and may buy directly from overseas suppliers. Steamhouse does not hedge its indirect exposure to currencies, particularly the United States dollar, so a weaker rupee can increase costs even when purchases are invoiced by Indian suppliers.

Can purchased steam and coal trading remain central to Steamhouse's mix?

Purchased steam can remain a material part of Steamhouse's mix if its disclosed supply arrangements begin operating as planned. In April 2026, Steamhouse entered separate five-year steam-purchase agreements with chemical companies for Dahej Special Economic Zone and Haldia. The company expects operations at both locations within 12 months from the date of the red herring prospectus, adding to purchased-steam operations already disclosed for Dahej GIDC Phase 1 and Sachin GIDC.

Customer demand remains relevant because Steamhouse served 202 customers in Fiscal 2026, compared with 173 in Fiscal 2025 and 125 in Fiscal 2024. Its top 10 customers accounted for Rs 235.291 crore, or 47.87%, of Fiscal 2026 revenue from operations, while repeat customers accounted for 90.72%. Steamhouse defines repeat customers as customers or customer groups from which it recognised revenue in at least one of the preceding three fiscal years.

The future mix may also be affected by Steamhouse's planned facilities at Panoli Phase 2, Nandesari Phase 2, Jhagadia, Vapi Phase 3, Ankleshwar Phase 3, Pirana, Tarapur and Dahej GIDC Phase 2. Steamhouse expects Nandesari Phase 2, Jhagadia and Vapi Phase 3 in calendar year 2026, and Pirana and Tarapur in calendar year 2027. The company expects to fund capital expenditure through internal accruals, short- and long-term bank borrowings, and overdraft facilities, so execution and funding remain conditions for additional generation capacity.

Conclusion

Steamhouse's Fiscal 2026 revenue profile was no longer primarily a direct boiler-generation outcome. Coal trading and purchased steam contributed Rs 219.324 crore, or 44.62%, of operating revenue, while generation and distribution of steam remained the largest single line at Rs 256.255 crore. The comparison with Fiscal 2024, when the two newer commercial lines supplied only 0.01% of revenue, shows how sharply the reported revenue mix changed.

The next disclosed milestones are the planned starts of Dahej Special Economic Zone and Haldia purchased-steam operations within 12 months of the prospectus, and facilities expected in calendar years 2026 and 2027. Whether the mix persists will depend on those projects, coal availability and price pass-through, customer offtake, and Steamhouse's ability to secure the funding identified for its capital expenditure plans.