Steamhouse related-party transactions equalled 74% of Fiscal 2026 revenue

Steamhouse reported Rs 365.136 crore of related-party transactions in Fiscal 2026, equal to 74.29% of Rs 491.511 crore in revenue from operations. Group-company transactions accounted for Rs 362.456 crore, or 99.27%, of the related-party total, while Sanjoo Dyeing and Printing Mills Private Limited was both Steamhouse’s largest customer and a top-10 supplier.

Why did Steamhouse related-party transactions equal 74% of revenue?

Steamhouse’s total related-party transactions increased to Rs 365.136 crore in Fiscal 2026 from Rs 279.690 crore in Fiscal 2025 and Rs 110.101 crore in Fiscal 2024. As a share of revenue from operations, the transaction value rose from 37.74% in Fiscal 2024 to 70.79% in Fiscal 2025 and 74.29% in Fiscal 2026. The disclosure presents these transactions as occurring in the ordinary course of business.

Revenue from operations also rose over the three reported fiscal years, reaching Rs 491.511 crore in Fiscal 2026 from Rs 395.106 crore in Fiscal 2025 and Rs 291.710 crore in Fiscal 2024. Related-party transaction value rose by Rs 255.035 crore between Fiscal 2024 and Fiscal 2026, while revenue from operations rose by Rs 199.801 crore. The 74.29% ratio measures the total value of related-party transactions against revenue from operations; the disclosure does not say all such transactions were sales.

The percentage of revenue represented by related-party transactions increased by 36.55 percentage points from Fiscal 2024 to Fiscal 2026. The sharpest change occurred in Fiscal 2025, when the ratio rose by 33.05 percentage points from the Fiscal 2024 level. Steamhouse does not provide a transaction-by-transaction reconciliation of the Rs 365.136 crore total in the risk-factor disclosure.

How concentrated were Steamhouse’s dealings with group companies?

Steamhouse’s transactions with group companies were Rs 362.456 crore in Fiscal 2026, representing 99.27% of the Rs 365.136 crore total related-party transactions. Group-company transactions were Rs 278.179 crore in Fiscal 2025 and Rs 103.666 crore in Fiscal 2024, representing 99.46% and 94.16%, respectively, of each year’s related-party total.

The group-company value was equal to 73.74% of Fiscal 2026 revenue from operations, compared with 70.41% in Fiscal 2025 and 35.54% in Fiscal 2024. This means the change in the overall related-party ratio was principally associated with group companies in all three years, given their share remained above 94% of related-party transaction value.

Steamhouse states that it is likely to continue entering into related-party transactions with group companies. The company says some future transactions may require significant capital outlay, without quantifying that outlay or the value of future dealings. Future transactions will require Audit Committee, Board or shareholder approval where applicable under the Companies Act, 2013 and the Securities and Exchange Board of India, or SEBI, Listing Regulations.

Why is Sanjoo Dyeing important to Steamhouse’s related-party exposure?

Sanjoo Dyeing and Printing Mills Private Limited, referred to by Steamhouse as Sanjoo Dyeing, was Steamhouse’s largest customer in Fiscal 2026. Sales to Sanjoo Dyeing were Rs 90.244 crore, equal to 18.36% of Fiscal 2026 revenue from operations, compared with Rs 65.603 crore, or 16.06%, in Fiscal 2025. Steamhouse identifies those sales as related-party transactions because Sanjoo Dyeing is a group company.

Sanjoo Dyeing was also Steamhouse’s fourth-largest supplier in Fiscal 2026, with purchases of Rs 31.124 crore, or 9.22% of total purchases. It was among the top 10 suppliers in Fiscal 2025 and Fiscal 2024, when purchases were Rs 32.908 crore and Rs 6.560 crore, respectively. Steamhouse therefore had a disclosed customer and supplier relationship with the same group company across the reported periods.

Coal trading was another disclosed link. Steamhouse’s coal-trading revenue was Rs 132.327 crore in Fiscal 2026, or 26.92% of revenue from operations, after Rs 76.245 crore, or 19.30%, in Fiscal 2025 and Rs 19,000 in Fiscal 2024. Steamhouse attributed the Fiscal 2025 increase primarily to coal sales in Sachin to Sanjoo Dyeing following the termination of a leave-and-license agreement and the cessation of Steamhouse’s operation of Sanjoo Dyeing-owned steam-generation facilities.

Steamhouse said Fiscal 2026 coal-trading revenue was primarily due to coal sales in Sachin to Sanjoo Dyeing. It also said coal was sold to Sanjoo Dyeing at prevailing market prices and on an arm’s-length basis in Fiscal 2025 and Fiscal 2026. Steamhouse entered into an operations and maintenance, or O&M, agreement with Sanjoo Dyeing on April 1, 2025, for a three-year term.

What other dependencies overlap with the group-company relationship?

Steamhouse’s top 10 customers contributed Rs 235.291 crore, or 47.87%, of Fiscal 2026 revenue from operations, down from 53.95% in Fiscal 2025 and 59.79% in Fiscal 2024. Sanjoo Dyeing alone accounted for Rs 90.244 crore of the Fiscal 2026 amount. Steamhouse says planned new projects should diversify its customer base, but expects to remain reliant on its top 10 customers for a large portion of revenue for the foreseeable future.

Fiscal 2026 contracts with Steamhouse’s top-10 customers run for between two and seven years. Four agreements are due to expire in Fiscal 2027, one in Fiscal 2029, while four top-10 customers have no written agreements and buy through purchase orders. Steamhouse said it has had 30 instances of customer agreements being terminated by either party during Fiscal 2024, Fiscal 2025 and Fiscal 2026.

Supplier concentration was higher than customer concentration in Fiscal 2026: the top 10 suppliers accounted for Rs 275.918 crore, or 81.71%, of total purchases, against 75.35% in Fiscal 2025 and 76.53% in Fiscal 2024. Sanjoo Dyeing’s Rs 31.124 crore of Fiscal 2026 purchases placed it within that top-10 supplier group. Steamhouse says it has no long-term supply contracts or arrangements with suppliers and typically sources material through purchase orders.

Steamhouse’s coal purchases were Rs 260.977 crore in Fiscal 2026 and represented 77.29% of total purchases, compared with 76.19% in Fiscal 2025 and 92.01% in Fiscal 2024. Steamhouse says it had no material coal-supply-chain disruption in Fiscal 2024, Fiscal 2025 or Fiscal 2026, but notes that coal sourced by Indian importers is predominantly from Indonesia. The overlap of customer, supplier and coal-trading activity gives Sanjoo Dyeing a disclosed role in several commercial flows.

Conclusion

Steamhouse’s Fiscal 2026 related-party transaction value of Rs 365.136 crore equalled 74.29% of Rs 491.511 crore in revenue from operations, up from 37.74% in Fiscal 2024. Group companies represented 99.27% of that value, and Sanjoo Dyeing was the largest Fiscal 2026 customer as well as a top-10 supplier, with coal sales and an O&M agreement adding to the disclosed commercial relationship.

The next disclosed developments to watch are the three-year O&M agreement that began on April 1, 2025, the expiry in Fiscal 2027 of four top-10 customer agreements, and Steamhouse’s planned projects intended to diversify its customer base. Steamhouse says it is likely to continue related-party dealings, while future transactions remain subject to applicable approval requirements and the company does not quantify their future value.