SAMBHVNSESambhv Steel Tubes LimitedMediumNeutral
Announced Sat, 9 May · 17:14 IST

Sambhv Steel Tubes Limited has informed the Exchange about Capacity addition

Major Capex Above 10pct NetworthGreenfield CommissionedCapex & Operations View source PDF

SAMBHV · price

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Price reaction · full curve 14 horizons · vs prior close
-11.5%1-day move
₹130.00
prior close
₹136.00
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AI summary

Sambhv Steel Tubes Limited's Board approved two major capacity expansion projects at its Sarora facility in Chhattisgarh: a 150,000 MTPA increase in pipe manufacturing capacity (₹500 million investment) and a new 30 MW captive power plant (₹1,500 million investment), totaling ₹2,000 million. The pipe capacity will rise from 350,000 to 500,000 MTPA (43% increase), while power capacity doubles from 25MW to 55MW. The company reported strong FY26 consolidated results with total income of ₹24,204.61 million and profit after tax of ₹1,901.87 million, up significantly from ₹15,167.01 million and ₹781.79 million respectively in FY25. Q4 FY26 standalone profit after tax was ₹533.12 million. The expansions are funded partly through debt and partly through internal accruals, scheduled for completion by December 2027. The board also appointed a new executive director and re-designated the chairman.

Likely market impact

This is a significant positive development for shareholders. The ₹2,000 million capex program represents roughly 10-12% of net worth, signaling strong growth ambitions. Doubling pipe capacity and self-generating captive power should improve operational efficiency and reduce energy costs, potentially boosting future earnings.