This article first appeared on GuruFocus .

Release Date: November 13, 2025

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

Positive Points

• Sales volume grew by 1.78% YOY to 1.25 lakh tons, indicating stable demand despite seasonal challenges.

• Revenue from operations increased by 21.66% to 858.77 crores, driven by a better product mix and higher contribution from value-added products.

• EBITDA per ton improved by 3.24% to ?3,540, supported by efficiency gains and cost optimization measures.

• Capacity utilization remained healthy at around 66% and is expected to improve with new capacity commissioning.

• The company is expanding its footprint with a new Greenfield manufacturing project in Hindupur, Andhra Pradesh, aiming for a 2 million ton capacity.

Negative Points

• The debt-equity ratio increased to 0.21 from 0.15 last year, indicating a rise in debt levels.

• The company faces challenges from declining steel prices and extended monsoon conditions.

• The differential between primary and secondary steel prices has narrowed, impacting margins.

• CapEx guidance for FY27 is high at 120 to 130 crores, indicating significant capital expenditure requirements.

• The company is still in the process of commissioning new capacities, which may delay immediate volume growth.

Q & A Highlights

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Q: Are you maintaining your volume guidance of about 6 lakh tons for FY26, and what is the EBITDA guidance? A: Yes, we are maintaining our volume guidance between 5.5 to 6 lakh tons. For EBITDA, we achieved ?3,550 per ton this quarter, and with stabilized steel prices, we expect significant improvement. The new facilities focusing on value-added products will also help increase the blended EBITDA per ton. (Respondent: Executive Director and Group CFO)

Q: How will the 1 million ton capacity be added in the coming years? A: By FY28 to mid-FY29, we plan to commission an additional 1 million tons, partly through brownfield and partly through greenfield expansions. We have the land and approvals in place, and construction has started at one site. (Respondent: Executive Director and Group CFO)

Q: What has driven the 20% year-over-year growth in realization per metric ton? A: The growth is due to several factors, including the launch of an export vertical with higher value, new value-added products, and special SKUs. Trading volumes also contributed to the higher realization. (Respondent: Executive Director and Group CFO)