Sambhv Steel Tubes Ltd

AGM notice and access

• Notice of the 9th AGM and FY2025-26 AR available online on the company website.
• AGM scheduled for September 10, 2026 at 11:30 IST via VC/OAVM.
• Letters sent to non-registered-email shareholders informing access via link or QR code.
• Electronic copies of AGM notice and Annual Report sent to registered emails under Regulation 36(1)(a).
• Date of communication: 18 August 2026.

Meeting Details

• Date and time: Saturday, August 22, 2026, 09:00 AM to 03:00 PM IST
• Type and mode: Site visit (in-person) with Analysts/Institutional Investors
• Organizer: Systematix Group
• Key company participant: Company Secretary and Compliance Officer
• Purpose: Site visit for analysts/institutional investor interaction
• Materials: Discussion will reference publicly available documents; no UPSI will be shared

Financial highlights

• Revenue from operations 24,132.43 million, up 59.67% YoY.
• Sales volume 396,731 MT, +36.53% YoY.
• EBITDA 2,762.99 million, +78.68% YoY.
• PAT 1,432.68 million, +146.83% YoY.
• EBITDA margin 11.45%; PAT margin 5.94%.
• IPO proceeds deployed to debt reduction; debt down to 3,781.37 million.
• Gearing improved to 0.36x (from 1.08x).
• RoCE rose to 15.97%.
• Interest coverage improved to 5.43x.
• EPS 5.09; CFO 2,158.21 million.
• Net worth 10,554.29 million; cash 616.19 million (standalone).
• Installed capacity 624,000 MTPA; Vision 2030 target 2.03 MMTPA.
• Capex 1,225.99 million; ongoing expansions under Vision 2030.
• Value-added revenue share 92.66% of total revenue.

Value-added product mix

• Value-added products contributed 92.66% of revenue in FY25-26.
• Product mix shift: structural pipes/tubes 45%; SS coils 26%; GP coils/pipes 22%.
• Intermediate products 5%; Others 2% of revenue.
• Stainless steel ramp-up at Kuthrel accelerated value-added mix.
• Premium stainless and GP lines boosted blended realisations.

Operations and capacity

• Installed capacity 624,000 MTPA across Sarora and Kuthrel.
• Vision 2030 target: 2.03 MMTPA finished steel capacity.
• SS capacity utilization: blooms/slabs 100.89%, HR coils 97.77%, CR coils 87.02%.
• GP coils capacity 74.49% utilization post-expansion.
• Captive power 25 MW; 56.35% of power from internal sources.
• Kesda greenfield and Kuthrel Unit II progressed; MoU under PLI for SS CR coils.
• DFT pipe mill expansion planned to 500,000 MTPA.

Capital structure and liquidity

• IPO raised 5,400 million; fresh issue 4,400 million; OFS 1,000 million.
• Fresh IPO proceeds used for debt prepayment about 3,900 million.
• Net debt 3,128.25 million; net gearing 29.69% (consolidated).
• Standalone debt declined to 3,781.37 million; Debt/EBITDA 1.37x.
• CFO after IPO 2,115.26 million; cash and cash equivalents 619.04 million (consolidated).
• Total equity 10,536.07 million; assets 20,657.05 million (consolidated).

Growth strategy and Vision 2030

• Vision 2030 pillars: integration, manufacturing scale, and value enhancement.
• Capex: Kesda and Kuthrel Unit II; 25 MW captive power plant.
• DFT pipe mill expansion to 500,000 MTPA; ERW capacity expansion to 500,000 MTPA planned.
• Finish steel capacity target at 2.03 MMTPA; higher value-added product mix.
• Balance sheet discipline: funding through internal accruals and calibrated borrowings.

Governance and leadership changes

• Suresh Kumar Goyal appointed Chairman & MD from May 9, 2026; Postal Ballot July 10, 2026.
• Saurabh Patil appointed Executive Director August 30, 2025; approved Sept 29, 2025 AGM.
• Bikash Agrawal appointed Executive Director May 9, 2026; Postal Ballot July 10, 2026.
• Board size 9; independent directors appointed; diverse governance framework.

Dividend, IPO and corporate actions

• Dividend distribution policy approved; no dividend recommended for FY2025-26.
• IPO completed July 2, 2025; proceeds allocated to debt repayment and general corporate purposes.
• Monitoring agency CARE appointed to oversee IPO proceeds utilization.

CSR and ESG progress

• CSR expenditure 19.95 million; total CSR spend 21.36 million.
• CSR focus: healthcare, rural development, education, shelter, food, and environment.
• CSR outreach: 2,303 employees trained; 1,000+ dealers and 47 distributors network.
• Eye care and medical camps; tree plantation and community infrastructure support.

Outlook and risks

• India's steel demand remains structurally robust; infra and manufacturing push growth.
• Risks: raw material and energy price volatility; regulatory and policy changes.
• Continued investment under Vision 2030; expanding downstream and value-added capabilities.
• Government capex supports sustained demand; company aims for resilient through-cycle performance.

AGM details

• AGM schedule: 10 September 2026 at 11:30 IST, via VC/OAVM.
• Record date for eligibility: 3 September 2026.

Resolutions proposed

• Item 1: Adopt standalone financial statements for FY 2025-26.
• Item 2: Adopt consolidated financial statements for FY 2025-26.
• Item 3: Re-appoint Suresh Kumar Goyal as Director; retires by rotation.
• Item 4: Ratify cost auditors' remuneration for FY 2026-27; Rs 35,000 plus taxes.

Directors

• Suresh Kumar Goyal, Chairman & MD; on board since 2017; MD since May 9, 2026.

Auditors

• Cost auditors AS Rao & Co.; remuneration Rs 35,000; to be ratified by members.

Rating action

• Long-term bank facilities of Rs 162 crore rated Crisil A+/Stable (Assigned).
• Rating agency: Crisil Ratings Limited.

Rationale and profile

• Established market presence backed by promoters' three decades' steel experience.
• Integrated operations with captive power improving efficiency and cost control.
• Healthy financial risk profile; gearing improved post-IPO.
• Balance sheet strengthened; tangible net worth above Rs 1,000 crore.
• EBITDA per tonne rose to about Rs 9,000 in Q1 FY2027.
• Capex program and steel cyclicality pose medium-term risks.
• Liquidity strong; annual cash accrual Rs 250-400 crore.
• Bank limits utilisation around 40% in the 12 months through July 2026.

Outlook

• Outlook: Stable.

Rating sensitivities

• Upward factors: scale growth and margin expansion.
• Downward factors: sustained margin decline; net debt/EBITDA above 3x.

Meeting Details

• Date and time: Thursday, August 20, 2026, 03:00 PM–06:00 PM IST.
• Type and mode: Group site visit, physical at Raipur facilities.
• Organisers/participants: Analysts and Institutional Investors; Sequent Investment; Mili Capital Management Pvt. Ltd.
• Company participants: Company Secretary and Compliance Officer.
• Purpose: Investor interaction; discussion based on publicly available documents.
• Note: Schedule subject to change; no UPSI will be shared.

Env Clearance for Unit-3

• Fresh Environmental Clearance received for Unit-3 enabling 30 MW CPP and Ferro Alloys project.
• Authority: Government of India, MoEF&CC, IA Division.
• Location: Sambhv Steel Tubes Unit-3, Sarora Village, Raipur, Chhattisgarh.
• Scope: Ferro Alloys via SAF furnaces (18 MVA × 4 Nos.) and 60 MW CPP.
• Investment size: INR 1,500 million for the project.
• EC ID: EC26A1005CG5736550N; MoEF&CC File No: IA-J11011/357/2025-IA-II(Ind-I).
• EC is subject to conditions; no fixed validity period stated.
• Annexure A provides disclosures; no withdrawal or suspension as on date.

EGM details

• 1st EGM for FY 2026-27 held on August 10, 2026.
• Consolidated voting results and scrutinizer report dated August 11, 2026.
• Scrutinizer: Rohtash Kumar Agrawal (FCS 5537, COP 4015).
• Remote e-voting and EGM voting included in results.
• Voting results will be available on Sambhv's investor page.
• Company Secretary Niraj Shrivastava coordinated filing.