This article first appeared on GuruFocus .
Release Date: November 05, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Hi-Tech Pipes Ltd ( NSE:HITECH ) reported a 70.7% year-over-year revenue growth to Rs 1,466 crores in Q2 FY27, driven by a 32% increase in sales volume.
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The company significantly improved its working capital management, reducing net working capital days from 56 to 33, with a target to bring it under 30 days.
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Hi-Tech Pipes Ltd ( NSE:HITECH ) is on track with its capacity expansion plans, targeting 2 million tonnes by FY29, which is expected to generate approximately Rs 9,000 crores in revenue at 65% utilization.
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The specialized solar pipes segment is a key growth driver, with the company expecting it to be one of the highest-growing segments over the next three years, capitalizing on India's 40-50 GW annual solar installation target.
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The company maintains a stable and low debt-equity ratio of 0.23x and projects an increase in EBITDA per ton to Rs 4,000-4,500 by FY29, driven by a higher share of value-added products (VAP) moving from 40% to 55%.
Negative Points
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Hi-Tech Pipes Ltd ( NSE:HITECH ) experienced a slight decline in EBITDA per ton to Rs 3,429 in Q2 FY27 from Rs 3,540 in the previous year, despite overall EBITDA growth.
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The first half of FY27 was challenging due to external factors like war and the monsoon season, which impacted energy prices, logistics, and freight costs.
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The company's debt-equity ratio increased slightly from 0.18x to 0.23x, and it carries a net debt of approximately Rs 304 crores as of H1 FY27.
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A significant portion of the planned capital expenditure for FY28 and FY29 (around Rs 150 crores) will require external funding through term loans, although the focus is on internal accruals.
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The company had to address and deny market rumors regarding APL Apollo acquiring a stake, which could indicate market speculation and potential stock volatility.
Q & A Highlights
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Q: Could you share your volume guidance for FY27, FY28, and FY29? A: Anish Bansal (Full-Time Director) said the company is confident of achieving at least 6.5 lakh tons of sales volume in FY27. For FY28, without the new capacity additions, volumes should be between 8.5 to 9 lakh tons, and in FY29, between 1.1 to 1.2 million tons.
Q: How confident are you about achieving the 2 million tonne capacity target by FY29, and what revenue growth potential could this create? A: Anish Bansal (Full-Time Director) stated that work is in progress for the bulk of this capacity through greenfield and brownfield expansions, and he is very confident the capacity will come on stream ahead of FY29. At a 65% utilization level, this capacity can generate approximately Rs 9,000 crores in revenue.
Q: As you progress toward 1.2 million tons of utilization in FY28-29, how should we look at EBITDA per ton? A: Anish Bansal (Full-Time Director) explained that the plan is to increase the value-added products (VAP) share from the current 40% to 55% in the next phase of growth. With this higher VAP mix, the blended EBITDA per ton is expected to range from Rs 4,000 to Rs 4,500 per ton.
Q: How is the demand environment shaping up across major end-user industries, and do you expect the growth momentum to continue in H2 FY27? A: Anish Bansal (Full-Time Director) noted that the company achieved nearly 30% volume growth in H1 despite challenges from war and the monsoon season. With these effects subsiding, he expects much higher demand in H2, especially from the solar industry, which is at its peak, and the company is geared up to capitalize on this opportunity.
Q: Could you elaborate on the growth opportunity in the specialized solar pipes segment and its importance over the next two to three years? A: Anish Bansal (Full-Time Director) highlighted that India is installing 40 to 50 GW of solar plants annually, with every 1 MW requiring at least 20-22 tons of pipes, creating a 1 million ton market. He is very confident that solar will be one of the highest-growing segments for the company over the next three years, given its early entry, full product range, and sufficient capacities.
Q: What is the CapEx spend targeted for FY27, FY28, and FY29? A: Arvind Bansal (CFO) stated that H2 FY27 CapEx will be around Rs 150 to 200 crores, which will complete 3.5 lakh tons of capacity. For FY28 and FY29, more CapEx will be incurred for additional capacities, with an indicative figure of around Rs 150 crores for FY27 and FY28. The focus will be to fund CapEx primarily through internal accruals, with part funded through term loans as required.
Q: Working capital days have come down significantly to 33 days. Is this a sustainable number going forward? A: Anish Bansal (Full-Time Director) confirmed that the reduction was a very conscious decision and is sustainable. The company is actually trying to bring it under 30 days and remains very focused on maintaining this discipline.
Q: What is the net debt level at the end of September (H1 FY27)? A: Arvind Bansal (CFO) reported that net debt as of H1 FY27 is around Rs 304 crores, comprising term loans and working capital.
Q: There are market rumors suggesting APL Apollo is buying shares in Hi-Tech Pipes. Can you comment on that? A: Anish Bansal (Full-Time Director) categorically denied the rumor, stating that it is absolutely not correct and reiterated that no such development or stock purchase is taking place.
Q: What is the timing for the new capacities to come on stream? A: Anish Bansal (Full-Time Director) said the company is adding 3 lakh tons of capacity in Q4 FY27 across three projects (Sanand Unit 2 Phase 3, Khopoli API pipes, and Hindupur integrated coated facility). By the end of FY27, total capacity will be 1.35 million tons, reaching 1.7 million tons in FY28 and 2 million tons in FY29.
Q: Are you confident of maintaining or improving EBITDA per ton around Rs 3,500 going forward? A: Anish Bansal (Full-Time Director) noted that H1 was challenging due to high energy, logistics, and ocean freight costs, yet the company maintained Rs 3,500 per ton EBITDA. With new facilities now at optimal utilization, war-related logistic costs easing, the monsoon over, and government CapEx looking okay for H2, he is confident of maintaining both volumes and the EBITDA pattern in H2.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
