GANDHITUBE - Gandhi Spl. Tube

📊 NSE: GANDHITUBE 🏢 Steel - Medium / Small 📅 Last Updated: 12/13/2025 22:15

💰 Financial Performance

Revenue Growth by Segment

Not disclosed in available documents. The company reported un-audited financial results for Q2 FY26 (quarter ended 30 September 2025) on 10 November 2025, but specific segment growth percentages were not provided in the announcements.

Geographic Revenue Split

Not disclosed in available documents. The company operates a manufacturing plant in Halol, Gujarat, but regional revenue contribution percentages are not specified.

Profitability Margins

Not disclosed in available documents. Financial results for the half-year ended 30 September 2025 were approved by the Board, but specific Gross, Operating, or Net profit percentages were not included in the text.

EBITDA Margin

Not disclosed in available documents. Core profitability metrics and YoY changes were not provided in the summary announcements.

Capital Expenditure

Not disclosed in available documents. Historical or planned capital expenditure values in INR Cr were not mentioned.

Credit Rating & Borrowing

CRISIL suspended its ratings for the company's INR 9.5 Cr (95 million) bank loan facilities on 13 July 2012 due to non-cooperation. Previous ratings included CRISIL A1+ for short-term facilities (INR 7 Cr) and CRISIL A+/Stable for long-term facilities (INR 2.5 Cr Cash Credit).

⚙️ Operational Drivers

Raw Materials

Steel is the primary raw material used for the production of precision-welded and seamless steel tubes. Specific cost percentages for steel coils or billets are not disclosed.

Capacity Expansion

The company has a current installed capacity of 24 million meters per annum (mmpa) for welded tubes and 16 mmpa for seamless tubes at its Halol, Gujarat plant. It also maintains a wind power capacity of 5.35 MW.

Raw Material Costs

Not disclosed in available documents. Procurement strategies and YoY cost changes were not provided.

Manufacturing Efficiency

Not disclosed in available documents. Specific capacity utilization percentages were not provided.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

The company focuses on maintaining its position as one of the largest players in the precision steel tube market by catering to high-volume OEMs in the automotive, refrigeration, and general engineering industries. A new inter-se promoter agreement signed on 22 November 2025 ensures management stability by requiring 75% promoter consent for share transfers and pledges, preventing hostile takeovers or sudden exits.

Products & Services

Precision-welded steel tubes, seamless steel tubes of small diameters, cold-formed nuts, and wind power generation.

Brand Portfolio

Gandhi Special Tubes.

Market Share & Ranking

The company is identified as one of the largest players in the precision-welded and seamless steel tubes business in India.

🌍 External Factors

Industry Trends

The industry is currently driven by the demand for high-precision components in the automotive sector. The company is positioned to benefit from this trend through its specialized 40 mmpa capacity for small-diameter tubes.

Competitive Landscape

The company competes with other specialized steel tube manufacturers, maintaining its edge through scale and its integrated manufacturing plant in Gujarat.

Competitive Moat

The company possesses a durable moat through its specialized manufacturing capabilities for small-diameter precision tubes and long-standing relationships with major OEMs, which are difficult for new entrants to replicate at scale.

Macro Economic Sensitivity

Highly sensitive to the growth cycles of the Indian automotive and refrigeration industries.

Consumer Behavior

Increased demand for high-quality, durable precision components in consumer appliances and vehicles is driving the shift toward specialized tube suppliers.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to manufacturing standards for steel tubes and regulations governing wind power generation in Gujarat.

Environmental Compliance

The company operates a 5.35 MW wind power plant, contributing to its green energy profile, though specific ESG compliance costs are not disclosed.

⚠️ Risk Analysis

Key Uncertainties

The transmission of a 13.24% stake following the death of promoter Bhupatrai Gandhi and the historical suspension of credit ratings due to non-cooperation with CRISIL are key uncertainties.