HARIOMPIPE - Hariom Pipe

📊 NSE: HARIOMPIPE 🏢 Steel - Medium / Small 📅 Last Updated: 12/13/2025 22:49

💰 Financial Performance

Revenue Growth by Segment

Total Income grew 17% YoY to INR 1,359.94 Cr in FY25. H1 FY26 revenue reached INR 797 Cr, a 21% YoY increase, driven by strong demand momentum in the second half. Sales volume for H1 FY26 also grew 21% YoY to 1.38 lakh MT.

Geographic Revenue Split

The company has a strong presence in the Andhra Pradesh region, leveraging government supplies and an expanding dealer network. While specific percentage splits are not disclosed, this belt is identified as a key growth driver for infrastructure demand.

Profitability Margins

Gross margins are influenced by steel pricing volatility. In FY25, Revenue per MT fell 4.6% to INR 55,284, while Cost per MT fell 5.3% to INR 48,019. PAT margin decreased from 4.90% in FY24 to 4.54% in FY25 due to higher depreciation and finance costs.

EBITDA Margin

EBITDA margin improved to 12.93% in FY25 from 12.02% in FY24, a 91 bps increase. EBITDA per MT remained stable at INR 7,265 (up 0.5% YoY). The improvement was aided by reduced power and fuel costs and a higher share of value-added products.

Capital Expenditure

FY25 Capex was directed toward maintenance, modernization, and de-bottlenecking. Future Capex is expected to be relatively lower, focusing on maintenance and a phased solar plant to reduce long-term power costs.

Credit Rating & Borrowing

The company maintains a 'Stable' outlook. Finance costs increased 37.9% YoY to INR 44.91 Cr in FY25, reflecting higher borrowing to support working capital and capacity ramp-ups.

⚙️ Operational Drivers

Raw Materials

Hot Rolled Coils (HRC) and HRPO coils are the primary raw materials. Steel pricing volatility is a major factor, as raw material costs represent the bulk of the INR 48,019 cost per MT.

Import Sources

Not disclosed in available documents; however, the company maintains established relationships with domestic suppliers.

Capacity Expansion

Production volume reached 2,45,467 MT in FY25, up 23.3% YoY. The company aims for a 30% CAGR in volume growth from FY26 to FY27 through targeted capacity expansions and de-bottlenecking.

Raw Material Costs

Raw material costs are highly sensitive to steel price volatility. In FY25, the cost per MT was INR 48,019, which decreased from INR 50,719 in FY24, helping to sustain EBITDA margins despite lower realizations.

Manufacturing Efficiency

Capacity utilization is improving, with production volume growing 23.3% YoY. Integrated operations from HRC to finished pipes provide a competitive edge in quality and cost.

Logistics & Distribution

The company maintains an expansive distribution network reaching both rural and urban areas. Logistics costs are expected to stay within a predictable range as volumes improve.

📈 Strategic Growth

Expected Growth Rate

30%

Growth Strategy

The 30% CAGR will be achieved by expanding the dealer network, increasing penetration in the OEM and B2B segments, and focusing on value-added products like the thin steel segment. The company is also entering the solar segment by providing mounting structures and accessories.

Products & Services

Steel pipes, tubes, GP pipes, HRPO coils, and solar panel mounting structures/accessories.

Brand Portfolio

Hariom Pipes.

New Products/Services

New segment focused on solar supporting structures and accessories, which contributed to a jump in 'purchase of stock in trade' in recent financials.

Market Expansion

Targeting the Andhra Pradesh belt for infrastructure growth and establishing new dealers to increase market reach.

Strategic Alliances

The company uses MOUs and long-term strategies with 'good companies' to ensure consistent consumption of Hariom products and maintain quality standards.

🌍 External Factors

Industry Trends

The industry is seeing robust infrastructure demand. Hariom is positioning itself by shifting from generic pipes to value-added thin steel segments and solar infrastructure, aiming for a 30% volume CAGR.

Competitive Landscape

The company faces competition in generic pipe markets and is strategically moving toward B2B and OEM segments to differentiate its product profile.

Competitive Moat

The moat is built on an integrated business model (cost leadership) and a specialized focus on the thin steel segment. This is sustainable due to the technical requirements and established dealer network in South India.

Macro Economic Sensitivity

Highly sensitive to infrastructure demand and government policy shifts. GDP growth and steel price cycles directly impact volume and realization trajectories.

Consumer Behavior

Increased demand for quality-certified products and specialized steel for solar and infrastructure projects is driving the shift toward value-added sales.

Geopolitical Risks

Macroeconomic headwinds in input costs and steel pricing volatility are the primary external risks identified.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to the Companies Act 2013 and SEBI Listing Regulations. The company maintains internal financial controls to ensure compliance with all applicable manufacturing and environmental standards.

Environmental Compliance

The company manages environmental risks through compliance with applicable laws and internal monitoring, though specific ESG costs are not disclosed.

Taxation Policy Impact

The effective tax rate for FY25 was approximately 25.7% (INR 21.38 Cr tax on INR 83.10 Cr PBT).

Legal Contingencies

The company reported no complaints under its vigil mechanism during the review period. Specific values for pending court cases were not disclosed.

⚠️ Risk Analysis

Key Uncertainties

Steel price volatility and working capital intensity are the primary uncertainties, with the potential to impact PAT margins (which fell 36 bps in FY25).