Steamhouse India Q2 Profit Rises 167% on Steam Sales

Q2 earnings show strong annual profit growth

Steamhouse India Ltd reported profit after tax of ₹7.77 crore for the quarter ended September 30, 2026, a year-on-year increase of 167.1%. The industrial utilities company attributed the annual improvement to higher industrial steam sales and better operating earnings. Its board approved the unaudited standalone and consolidated results for the quarter and half year ended September 30 at a meeting held on October 29, 2026. The results were subsequently filed with BSE and NSE. The quarter was the company’s second quarter of FY27. The annual comparison points to a stronger earnings base than the corresponding period last year. But the sequential data shows pressure on profitability compared with the June quarter.

Steam sales support the operating performance

Revenue from steam rose 43.6% year on year to ₹122.53 crore, according to the company’s reported operating update. Steam volumes sold increased 12.1% to 301,642 tonnes during the September quarter. The difference between volume growth and revenue growth indicates improved realisation or a better sales mix, although the company did not provide a detailed break-up in the supplied information. EBITDA increased 73.4% year on year to ₹24.68 crore from ₹14.24 crore. EBITDA per tonne rose 54.7% to ₹818.32. This metric shows that operating earnings improved faster than the volume of steam handled.

Total reported revenue was broadly stable sequentially

The supplied consolidated quarterly analysis lists revenue of ₹128 crore for September 2026, compared with ₹129 crore in June 2026. That represents a sequential decline of 0.5%. Separately, the operating update said revenue fell 0.7% quarter on quarter from ₹123.37 crore. These figures refer to different reported revenue measures in the source material and should not be treated as directly comparable without the company’s detailed financial statements. Both measures nevertheless indicate a broadly stable top line from the June quarter. The key movement in the quarter came from costs, margins, finance costs and tax rather than a major change in revenue.

Operating margin narrowed from the June quarter

Operating profit declined 20.2% sequentially to ₹24.7 crore from ₹30.9 crore. The operating margin contracted to 19.3% from 24.0%, a fall of 476 basis points. Materials and purchases increased to ₹87.5 crore from ₹80.6 crore. Employee cost rose to ₹3.6 crore from ₹3.4 crore, while other expenses declined to ₹12.2 crore from ₹13.7 crore. Materials and purchases accounted for 68.3% of revenue, employee costs for 2.8%, and other expenses for 9.6%. The increase in material costs despite near-flat revenue was a central factor behind the sequential margin compression.

Finance cost and tax added to profit pressure

Profit before tax fell 44.7% sequentially to ₹12.1 crore from ₹21.9 crore. Finance cost increased 39.2% to ₹9.6 crore from ₹6.9 crore, while depreciation was broadly unchanged at ₹4.4 crore. Other income declined 33.7% to ₹1.5 crore. The effective tax rate rose to 35.9% from 16.3% in the June quarter. Tax expense increased to ₹4.3 crore from ₹3.6 crore. These changes resulted in a 57.6% quarter-on-quarter decline in net profit to about ₹7.8 crore from ₹18.3 crore.

Key Q2 FY27 financial metrics

IPO completed during the September quarter

Steamhouse India completed its initial public offering during the quarter and listed on September 17, 2026. The supplied information states that the issue involved 51,111,110 equity shares with a face value of ₹2 each. The issue size was stated at ₹414 crore, comprising a fresh issue of 43,580,246 shares and an offer for sale of 7,530,864 shares. The company’s finance cost was also reported to have risen year on year in the standalone analysis. However, the information provided does not establish a direct causal link between the IPO and the quarter’s finance-cost movement. Investors will need to rely on the full filings for the use of proceeds and balance-sheet implications.

Himachal Pradesh project adds to order visibility

During the quarter, Steamhouse India announced an EPC, commissioning and comprehensive operations and maintenance mandate from Himachal Pradesh Bulk Drug Park Infrastructure Ltd. The mandate covers a 300 TPH common steam plant and a co-generation power plant with an indicative capacity of 30 MW. The project is planned for the Bulk Drug Park at Una in Himachal Pradesh. The order is aligned with the company’s industrial steam and energy infrastructure business. The supplied information does not disclose the project value or execution timeline. Therefore, its financial contribution cannot be quantified from the available material.

What the results mean for investors

The September-quarter results present two distinct trends. On an annual basis, profit, EBITDA, steam revenue and volumes improved substantially. On a sequential basis, however, revenue was nearly flat while operating profit, margins, profit before tax and net profit declined. The rise in materials cost, finance cost and effective tax rate explains much of the quarter-on-quarter pressure. EBITDA per tonne of ₹818.32 remains an important operating indicator because it measures earnings against steam volumes sold. Future quarterly disclosures will show whether the September margin decline was temporary or becomes a sustained cost trend.

Outlook depends on execution and cost movement

Steamhouse India enters the second half of FY27 after completing its market listing and reporting a sharp year-on-year increase in September-quarter profit. Its operating update also shows continued growth in steam volumes and the addition of an industrial infrastructure mandate in Himachal Pradesh. At the same time, the June-to-September comparison highlights lower margins and significantly lower net profit. The next reported results and project-related disclosures will be relevant for assessing operating performance, costs and execution progress. For now, the reported numbers show strong annual earnings growth alongside a weaker sequential quarter.