Hariom Pipe Industries Ltd Q2FY26 – From Pipes to Power: ₹336 Cr Sales, 33% Profit Drop, and a 1.5 MTPA Dream That Might Need Iron Supplements

1. At a Glance

If ambition had a shape, it would probably look like a steel pipe — long, shiny, and occasionally hollow inside. Hariom Pipe Industries Ltd (HPIL) just dropped its Q2FY26 results, and the numbers are giving mixed vibes: revenue of ₹336 crore (up 6.9% YoY), but net profit slipped 33.8% to ₹10.4 crore. It’s like the gym bro who bulked up but forgot leg day.

The market doesn’t seem impressed — the stock’s down nearly25% in 3 months, trading at ₹370 with aP/E of 18.3xand aROE of 11.9%. Market cap stands at ₹1,145 crore, making it a mid-size contender in the steel pipes space — somewhere betweenAPL Apollo’s swaggerandRatnamani’s yoga calmness.

As theBhagavad Gitawisely says,“You have the right to work, but never to the fruits of it.”Clearly, HPIL took that to heart — they worked hard on expansion, but the fruit (profit) went missing this quarter.

2. Introduction

There are companies that manufacture dreams, and then there’s Hariom Pipe — manufacturing everything fromsponge iron to scaffolding,GP coils to GI pipes, and now apparently, electricity.

With four manufacturing plants across the South, a 60 MW solar project coming up, and a ₹3,135 crore MoU for a1.5 MTPA integrated steel plant in Gadchiroli, the company’s ambitions are big enough to make Elon Musk blush. The only problem? Their profits are playing hide and seek.

Let’s put it this way: while competitors are busy talking about carbon neutrality and AI-driven supply chains, HPIL is busy talking about“Hot Charging”— a process so efficient it could make your tiffin hot by lunch.

But jokes aside, Hariom Pipe is one of India’s few trulyvertically integratedsteel players — fromraw material (sponge iron)tofinal product (MS & GI pipes)— all made in-house. It’s a rare level of control that gives them pricing power… at least in theory. In practice, this quarter’s margins look like a leaky faucet.

3. Business Model – WTF Do They Even Do?

Imagine a steel company that doesn’t just make pipes but also the stuff that makes the pipes — and even the energy that powers the machines making those pipes. That’s Hariom Pipe in one sentence.

Their business is split acrosseight major product linesand800+ SKUs, including:

• Sponge Iron & Billets(raw material stage)
• Hot Rolled Strips & MS Tubes(intermediate)
• GP/CR/HR Coils & GI Pipes(value-added stage)
• Scaffolding Systems(for construction — and possibly for holding up their profit margins)

They serve everything fromauto parts and furnituretosolar structures and greenhouses— because if you can bend steel, why not bend into new markets too?

The company sells85% of its output through a 900+ dealer networkacross southern India, with Telangana and Karnataka being top markets.

And now, they’ve decided to power it all literally — throughHariom Power & Energy Pvt. Ltd., their renewable energy subsidiary building a60 MW solar plantwith a long-term 25-year PPA. Because who needs steel when you can sell sunshine?

4. Financials Overview

Annualised EPS: ₹13.44 → P/E ≈27.5x(vs trailing 18.3x — clearly, optimism costs extra).

Commentary: The top line still flexed, but bottom line went on a diet.