INDIANHUME - Indian Hume Pipe

📊 NSE: INDIANHUME 🏢 Construction 📅 Last Updated: 12/14/2025 7:58

💰 Financial Performance

Revenue Growth by Segment

Construction of utility projects accounts for 90% of turnover. Revenue from operations for H1 FY26 was INR 672.21 Cr, a decrease of 6.44% YoY from INR 718.51 Cr in H1 FY25. However, Q2 FY26 revenue grew 2.94% YoY to INR 364.78 Cr.

Geographic Revenue Split

Not disclosed in available documents. The company operates 19 factories across India and has major land monetization projects in Pune (Maharashtra), Bengaluru (Karnataka), and Hyderabad (Telangana).

Profitability Margins

PAT margin was 3.56% in FY23 compared to 3.79% in FY22. For H1 FY26, PAT grew 27.4% YoY to INR 56.61 Cr from INR 44.42 Cr, driven by lower finance costs and higher-margin product sales.

EBITDA Margin

EBITDA margin significantly improved to 17.30% in Q2 FY26 from 10.44% in Q2 FY25. This improvement is attributed to the share of higher-margin product sales increasing from 18% to 33% of total revenue.

Capital Expenditure

The company completed a capital expenditure of approximately INR 46 Cr for additional capacity, which came on-stream by March 2025.

Credit Rating & Borrowing

Infomerics reaffirmed the rating at IVR A-/Stable for long-term bank facilities and IVR A2+ for short-term facilities. Finance costs for H1 FY26 were INR 24.10 Cr, a reduction of INR 6.12 Cr YoY due to debt reduction from land monetization proceeds.

⚙️ Operational Drivers

Raw Materials

Steel and cement are the primary raw materials for Hume pipes. Rising prices of these materials led to EBITDA margin moderation from 10.51% in FY22 to 9.44% in FY23.

Capacity Expansion

Current capacity includes 19 factories as of March 31, 2025. A recent expansion of INR 46 Cr was completed in March 2025 to support increased demand for water supply projects.

Raw Material Costs

Raw material costs are a significant portion of construction costs; volatility in steel and cement prices directly impacts the 9.44% EBITDA margin as the company operates on tender-based fixed-price contracts.

📈 Strategic Growth

Growth Strategy

Growth is driven by the monetization of surplus land (INR 559 Cr from Bengaluru and INR 139.62 Cr from Pune) to reduce debt and finance costs. Operationally, the company is shifting its mix toward higher-margin product sales (now 33% of revenue) and leveraging the Har Ghar Jal scheme.

Products & Services

Hume pipes, prestressed concrete pipes, and construction services for utility projects, primarily water supply and sewerage.

Brand Portfolio

The Indian Hume Pipe Co. Ltd.

Market Expansion

The company is expanding its presence in the water supply segment, with 90% of its order book now concentrated under the Central Government's Har Ghar Jal Scheme.

Strategic Alliances

Land development alliances with Dosti Realty Ltd. and Kalpataru Ltd. for Pune projects, and a land sale agreement with Godrej SSPDL Green Acres LLP for the Bengaluru property.

🌍 External Factors

Industry Trends

The water supply industry is growing due to the Har Ghar Jal Scheme, which aims to provide tap water to all rural households. The company is positioned to benefit from this through its established track record and pan-India factory network.

Competitive Landscape

Operates in a highly fragmented and competitive industry with numerous local and national players in the construction and pipe manufacturing segments.

Competitive Moat

Moat is built on a 100-year track record and 19 factories located near project sites, which provides a significant cost advantage in transporting heavy concrete pipes compared to centralized competitors.

Macro Economic Sensitivity

Highly sensitive to government infrastructure spending and budgetary allocations for water and sanitation schemes.

Consumer Behavior

Not applicable as the primary customers are government and municipal bodies.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to state and central government construction standards and pollution control norms for its 19 manufacturing units.

Taxation Policy Impact

The company paid INR 77.34 Cr in current tax for the year ended March 31, 2025, specifically related to the gain from the Bengaluru land sale.

Legal Contingencies

The company reported no instances of non-compliance or penalties from stock exchanges or SEBI over the last three years. Specific court case values were not disclosed.