💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment: Manufacturing of Stainless Steel Pipes and Tubes. Total turnover for FY 2024-2025 was INR 266.27 Cr, representing a 10.57% YoY decline from INR 297.75 Cr in FY 2023-2024.

Geographic Revenue Split

Not disclosed in available documents; however, manufacturing operations are concentrated in Hisar, Haryana.

Profitability Margins

Operating Profit (PBIDT) margin improved from 3.63% in FY24 to 4.62% in FY25. Net Profit (PAT) margin increased from 2.13% to 2.78% during the same period, indicating improved operational efficiency despite lower top-line revenue.

EBITDA Margin

Operating Profit (PBIDT) was INR 12.30 Cr in FY25, a 13.75% increase from INR 10.82 Cr in FY24. This margin expansion was driven by a reduction in interest costs and better management of operational expenses.

Capital Expenditure

Historical CAPEX includes the establishment of three manufacturing units (Unit I in 2007, Unit II in 2014, and Unit III in 2018). Specific planned CAPEX for FY26 is not disclosed in absolute INR values.

Credit Rating & Borrowing

Interest costs decreased by 9.67% YoY, from INR 1.52 Cr in FY24 to INR 1.37 Cr in FY25, suggesting a reduction in debt levels or improved borrowing terms.

⚙️ Operational Drivers

Raw Materials

Stainless Steel Coils (Steel Coils) are the primary raw material, representing the bulk of manufacturing input costs.

Import Sources

Primarily sourced domestically from India. Imports from China and Vietnam have drastically reduced due to current BIS Regulations.

Key Suppliers

Jindal Stainless (JSL) is a key supplier; the company operates under a Memorandum of Understanding (MOU) and is JSL's largest client in the pipes and tubes division.

Capacity Expansion

Historical capacity reached 1,400 MTPA by 2011. The company currently operates three units in Hisar, Haryana, with Unit I utilizing 2 Tube Mills.

Raw Material Costs

Raw material prices have been pushed higher industry-wide due to BIS regulations restricting cheaper imports from China and Vietnam, forcing a reliance on domestic supply.

Manufacturing Efficiency

The company conducts training sessions to improve productivity levels; however, specific capacity utilization percentages are not disclosed.

📈 Strategic Growth

Growth Strategy

Growth is targeted through the 'Stainless Bharat' initiative, leveraging the transition to a Public Limited Company and its 2025 NSE listing to access capital markets. The strategy focuses on expanding product offerings like NB pipes and maintaining its status as a preferred partner for Jindal Stainless.

Products & Services

Stainless Steel Pipes and Tubes, including NB (Nominal Bore) pipes.

Brand Portfolio

PSRAJ.

New Products/Services

Expanded into NB pipes in 2011; recent focus is on high-demand domestic steel products.

Market Expansion

Transitioned from a private to a public company in May 2024 and listed on the NSE SME exchange in 2025 to facilitate broader market reach.

Strategic Alliances

Long-term Memorandum of Understanding (MOU) with Jindal Stainless.

🌍 External Factors

Industry Trends

The industry is shifting toward domestic sourcing as BIS regulations make imports less viable. Stainless steel consumption in India is on an upward trajectory, supported by infrastructure growth.

Competitive Landscape

Competes with other domestic pipe manufacturers and faces pricing pressure from potential Chinese imports.

Competitive Moat

Moat is built on a 20-year relationship with Jindal Stainless and a localized manufacturing cluster in Hisar, providing a logistics and supply advantage.

Macro Economic Sensitivity

Highly sensitive to Indian government regulations (BIS) and domestic demand-supply conditions for stainless steel.

Geopolitical Risks

Trade barriers and BIS regulations specifically targeting imports from China and Vietnam significantly impact the raw material cost structure.

⚖️ Regulatory & Governance

Industry Regulations

Strict adherence to BIS Regulations for raw material imports is mandatory, which dictates procurement strategy and impacts input costs.

Taxation Policy Impact

Provision for taxation in FY25 was INR 2.55 Cr, reflecting an effective tax rate of approximately 25.6% on Profit Before Tax of INR 9.96 Cr.

Legal Contingencies

The company has disclosed pending litigations in Note-20 of its financial statements, though specific INR values for these claims are not provided in the summary.

⚠️ Risk Analysis

Key Uncertainties

Volatility in raw material prices (Steel Coils) and potential changes in government import duties or BIS norms.

Geographic Concentration Risk

Manufacturing is heavily concentrated in Hisar, Haryana, creating regional operational risk.

Third Party Dependencies

Significant dependency on Jindal Stainless for raw material procurement under an MOU.

Technology Obsolescence Risk

The company has implemented audit trail (edit log) facilities in its accounting software to mitigate data integrity risks and meet regulatory standards.