SURYA Steel Pipes posts record 2.67 lakh-tonne quarterly sales

SURYA’s Steel Pipes & Strips segment sold a record 2.67 lakh tonnes in Q2FY27, up 23% year on year and 17% quarter on quarter, while an approximately Rs 1,200 crore order book was scheduled for H2FY27 execution. Exports rose 64% year on year to 64,408 tonnes and accounted for about 24% of quarterly volume.

What drove SURYA’s record Steel Pipes & Strips volume?

SURYA’s Steel Pipes & Strips segment reached its highest-ever quarterly sales volume of 2.67 lakh tonnes in Q2FY27, exceeding management’s 2.60 lakh-tonne guidance. The presentation does not identify one specific driver for the record, but it reports 23% year-on-year volume growth and 17% quarter-on-quarter growth. H1FY27 volume consequently rose 22% year on year to 4.96 lakh tonnes.

Capacity utilisation increased to 84% in Q2FY27 from 82% in Q1FY27. The 2-percentage-point rise occurred alongside the 17% sequential increase in sales volume, while Q2FY27 represented more than half of the 4.96 lakh tonnes reported for H1FY27. The presentation does not disclose installed capacity or provide a plant-level utilisation breakdown.

SURYA’s Q2FY27 segment revenue increased faster than volume, rising 38% year on year to Rs 1,941 crore, compared with the 23% increase in tonnes sold. Revenue was also 22% above Rs 1,590 crore in Q1FY27, while volume was 17% higher sequentially. For H1FY27, revenue grew 35% year on year to Rs 3,531 crore as volume grew 22%.

How large were SURYA’s exports in Q2FY27?

SURYA exported 64,408 tonnes in Q2FY27, a 64% year-on-year increase that outpaced the segment’s overall 23% volume growth. Exports accounted for approximately 24% of the 2.67 lakh tonnes sold during the quarter. The presentation also says US volumes more than doubled from Q1FY27, although it gives no US tonnage for either quarter.

The disclosed export share means domestic sales accounted for the balance of roughly 76% of Q2FY27 segment volume. However, the presentation does not disclose export revenue, export realisation per tonne, destination-wise sales other than the US volume comment, or the contribution of exports to the segment’s Rs 1,941 crore quarterly revenue.

Exports are also prominent in the H2FY27 pipeline. About 1 lakh tonnes of export orders, valued at approximately Rs 850 crore, were included in the total order book of approximately Rs 1,200 crore. Export orders therefore represented about 71% of the disclosed order-book value, with the full book identified for execution in H2FY27.

What is included in SURYA’s H2FY27 order book?

SURYA’s approximately Rs 1,200 crore order book includes about 1 lakh tonnes of export orders worth approximately Rs 850 crore, scheduled for H2FY27 execution. Of those export orders, approximately 80,000 tonnes are American Petroleum Institute (API) pipes. The presentation does not name customers, disclose contract pricing, or provide delivery dates within H2FY27.

Domestic API orders had built up to approximately 20,000 tonnes. Combining the disclosed 80,000 tonnes of export API orders with domestic API orders indicates approximately 1 lakh tonnes of API-related volume, although the presentation does not state a combined value for those orders. The balance of the roughly Rs 350 crore order book is not separately described.

The order book is an execution pipeline rather than reported revenue. SURYA identifies the approximately Rs 850 crore export component and the overall approximately Rs 1,200 crore book for H2FY27, but does not provide expected revenue recognition by quarter or any forecast for realised margin. That distinction matters because Q2FY27 revenue of Rs 1,941 crore reflects completed period sales, whereas the order book concerns future execution.

How did SURYA’s Steel Pipes & Strips profitability change?

SURYA reported earnings before interest, tax, depreciation and amortisation (EBITDA) of Rs 103 crore for Steel Pipes & Strips in Q2FY27, up 1% year on year from Rs 102 crore and 22% quarter on quarter from Rs 84 crore. Profit before tax rose 7% year on year to Rs 75 crore and increased 33% from Rs 57 crore in Q1FY27.

EBITDA per metric tonne was Rs 4,105 in Q2FY27, down 18% from Rs 5,013 in Q2FY26 but up 2% from Rs 4,006 in Q1FY27. Thus, the Q2FY27 year-on-year comparison shows revenue rising 38% while EBITDA grew 1% and EBITDA per tonne fell 18%. The sequential comparison instead shows revenue and EBITDA each up 22%, alongside a 2% increase in EBITDA per tonne.

For H1FY27, segment EBITDA rose 22% year on year to Rs 188 crore from Rs 154 crore, while profit before tax increased 40% to Rs 132 crore from Rs 95 crore. H1FY27 EBITDA per tonne was Rs 4,059, compared with Rs 4,037 in H1FY26, a 1% increase. The presentation supplies these operating measures but does not give a segment-specific explanation for the Q2FY27 year-on-year decline in EBITDA per tonne.

What could raise SURYA’s value-added product share in H2FY27?

SURYA reported that value-added products accounted for approximately 48% of Steel Pipes & Strips volume in Q2FY27. Management expects that share to increase in H2FY27 as API export orders and domestic oil-and-gas orders are executed. The disclosed pipeline includes approximately 80,000 tonnes of export API pipes and approximately 20,000 tonnes of domestic API orders.

The expected shift is linked to the H2FY27 order pipeline, not a quantified revenue or profitability target. SURYA has not disclosed the value-added product share expected by the end of H2FY27, the revenue attached to domestic API orders, or the EBITDA per tonne associated with API products. Q2FY27 capacity utilisation of 84% provides the latest disclosed operating context for execution of the pipeline.

Conclusion

SURYA combined record Q2FY27 Steel Pipes & Strips sales of 2.67 lakh tonnes with 64,408 tonnes of exports and Rs 1,941 crore of segment revenue. Export volume increased 64%, faster than total volume growth of 23%, while the approximately Rs 1,200 crore H2FY27 order book indicates a disclosed pipeline that includes substantial export and API work.

The next point to watch is H2FY27 execution of approximately Rs 850 crore of export orders, including about 80,000 tonnes of API pipes, alongside approximately 20,000 tonnes of domestic API orders. Management expects value-added products to exceed their approximately 48% Q2FY27 volume share as these orders are executed, while capacity utilisation was last reported at 84% and EBITDA per tonne at Rs 4,105.