Hi-Tech Pipes Ltd (NSE:HITECH) Q3 2026 Earnings Call Highlights: Record Sales Amidst Margin ...

This article first appeared on GuruFocus .

Release Date: February 07, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript .

Positive Points

• Hi-Tech Pipes Ltd ( NSE:HITECH ) achieved its highest ever quarterly sales volume of 136,000 tons, marking a 10% increase from the previous year.

• Revenue from operations grew by 40% year-on-year to 1,070 crores, driven by high volumes and strategic project acquisitions.

• The company commenced commercial production at its new facilities in Sanand and Jammu, enhancing manufacturing scale and cost efficiencies.

• The introduction of a 12% safeguard duty by the government helped stabilize domestic steel prices, improving pricing discipline and margins.

• Hi-Tech Pipes Ltd ( NSE:HITECH ) has entered into long-term raw material supply MOUs, ensuring stable supply and supporting future capacity utilization.

Negative Points

• Profit after tax declined by 9% year-on-year to 17 crores, impacted by a sharp correction in hot rolled coil prices.

• The company's profitability was pressured by an influx of cheaper imports before the safeguard duty was introduced.

• Despite revenue growth, EBITDA only increased by 4% year-on-year, indicating margin pressures.

• The company faces challenges in balancing capacity expansion with maintaining profitability amidst volatile steel prices.

• There is concern about potential excess capacity in the market as peers also ramp up their production capabilities.

Q & A Highlights

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Q: How much did steel prices decline this quarter, and what is the outlook for the coming quarter? A: Steel prices declined by approximately ?2,500 per ton in Q3. However, following the introduction of a safeguard duty on December 30, 2025, prices have rebounded, and we expect the decline to reverse in Q4. (Respondent: Unidentified_2)

Q: How will the US-India trade deal impact the steel industry and Hi-Tech Pipes? A: The US-India trade deal, once finalized, is expected to benefit the Indian steel industry by opening the American market to Indian finished goods, which will be favorable for Hi-Tech Pipes. (Respondent: Unidentified_2)

Q: What is the timeline for the additional 1 million tons capacity expansion? A: We are targeting between FY28 and FY29 for the additional 1 million tons capacity, with half a million tons expected to be commissioned between FY27 and FY28. (Respondent: Unidentified_2)