Maharashtra Seamless Q2 profit falls 40% to Rs 78 crore

Maharashtra Seamless Limited reported Q2 FY27 profit after tax of Rs 78 crore, 40% below Rs 130 crore in Q2 FY26, as other income moved to negative Rs 2 crore from Rs 75 crore and seamless-pipe EBITDA per tonne fell to Rs 9,220 from Rs 10,315. MSL's revenue from operations nevertheless rose about 10% year on year to Rs 1,270 crore.

Why did MSL’s Q2 FY27 profit fall?

MSL’s Q2 FY27 profit fell because the loss of other income and a higher expense base more than offset the increase in revenue from operations. Other income was negative Rs 2 crore in Q2 FY27, compared with Rs 175 crore in Q1 FY27 and Rs 75 crore in Q2 FY26. Total revenue was Rs 1,268 crore, Rs 2 crore above Q1 FY27’s Rs 1,266 crore despite the reduction in other income.

Total expenses increased to Rs 1,169 crore in Q2 FY27 from Rs 939 crore in Q1 FY27 and Rs 1,061 crore in Q2 FY26. Material consumption rose to Rs 818 crore from Rs 742 crore sequentially and Rs 710 crore a year earlier, while depreciation was Rs 31 crore versus Rs 25 crore in Q2 FY26. Profit before tax therefore declined to Rs 99 crore from Rs 327 crore in Q1 FY27 and Rs 174 crore in Q2 FY26; tax expense was Rs 21 crore.

How did MSL’s quarterly earnings compare with earlier periods?

MSL’s Q2 FY27 revenue from operations increased 16% sequentially and about 10% year on year, but profitability moved in the opposite direction. Revenue from operations rose from Rs 1,091 crore in Q1 FY27 and Rs 1,159 crore in Q2 FY26 to Rs 1,270 crore. Profit after tax fell 71% from Rs 271 crore in Q1 FY27 and 40% from Rs 130 crore a year earlier.

Earnings before interest, tax, depreciation and amortisation, or EBITDA, declined to Rs 133 crore in Q2 FY27 from Rs 184 crore in Q1 FY27, although it remained above Rs 123 crore in Q2 FY26. The EBITDA margin was 11%, down from 17% in the preceding quarter and equal to the year-earlier level. Earnings per share were Rs 6, compared with Rs 20 in Q1 FY27 and Rs 10 in Q2 FY26.

What changed in MSL’s seamless-pipe business?

MSL’s seamless-pipe profitability weakened sharply from Q1 FY27 even though sales volumes increased. Seamless EBITDA was Rs 95 crore, down from Rs 151 crore in Q1 FY27 and Rs 106 crore in Q2 FY26. EBITDA per tonne was Rs 9,220, compared with Rs 15,660 sequentially and Rs 10,315 a year earlier, representing the reported segment-level change behind the lower quarterly operating result.

Seamless sales reached 103 thousand metric tonnes, or kMT, in Q2 FY27, up from 96 kMT in Q1 FY27 and level with Q2 FY26. Production was 97 kMT, unchanged sequentially but below 107 kMT a year earlier. Higher sales volume alongside lower EBITDA per tonne shows that the reported change was in seamless profitability rather than seamless sales volume.

Which businesses supported MSL’s Q2 FY27 EBITDA?

MSL’s renewable-energy and rig businesses contributed Rs 33 crore of Q2 FY27 EBITDA, moderating the decline in seamless EBITDA. Renewable energy contributed Rs 18 crore, up from Rs 17 crore in Q1 FY27 and Rs 16 crore in Q2 FY26, while the rig contributed Rs 15 crore, compared with Rs 14 crore in the preceding quarter. The Q2 FY27 EBITDA total was Rs 133 crore.

ERW, or electric resistance welded pipes, produced EBITDA of Rs 5 crore in Q2 FY27, versus Rs 2 crore in Q1 FY27 and Rs 1 crore in Q2 FY26. ERW sales were 29 kMT, rising from 20 kMT sequentially and 21 kMT year on year, while EBITDA per tonne improved to Rs 1,830 from Rs 1,080 and Rs 632 respectively. These improvements were smaller in absolute EBITDA terms than the Rs 56 crore sequential reduction in seamless EBITDA.

What do MSL’s half-year and financial-position figures show?

MSL’s H1 FY27 profit after tax was Rs 349 crore, 4% below Rs 364 crore in H1 FY26, while revenue from operations increased to Rs 2,361 crore from Rs 2,301 crore. Total revenue was nearly unchanged at Rs 2,534 crore against Rs 2,537 crore because other income declined to Rs 173 crore from Rs 235 crore. H1 FY27 EBITDA included Rs 246 crore from seamless pipes and Rs 7 crore from ERW pipes.

MSL reported liquid investments of Rs 3,706 crore at September 2026, down from Rs 3,860 crore at March 2026 but above Rs 2,630 crore at March 2025. Gross debt was Rs 5 crore, entirely described as a loan for capital expenditure, resulting in net cash of Rs 3,701 crore. Short-duration mutual funds accounted for Rs 3,329 crore of the September 2026 liquid-investment balance, while long-duration bonds and non-convertible debentures accounted for Rs 273 crore.

Conclusion

MSL’s Q2 FY27 figures show that a Rs 111 crore year-on-year increase in revenue from operations did not translate into higher profit. Negative other income, total expenses of Rs 1,169 crore and a decline in seamless EBITDA per tonne to Rs 9,220 reduced profit after tax to Rs 78 crore, even as ERW, renewable energy and the rig added Rs 38 crore of combined EBITDA.

The next results will show whether seamless profitability recovers from the Q2 FY27 level of Rs 9,220 per tonne and whether the planned finishing facilities in Telangana activate the existing 100,000 metric-tonne annual capacity. MSL also has a new-generation offshore jack-up rig on a three-year contract until November 2028, which contributed Rs 15 crore of EBITDA in Q2 FY27.