1. Opening Hook
Monsoons flooded roads, maintenance shut furnaces, and analysts flooded the call with margin anxiety. Hariom’s response? Calm confidence, borderline bravado.
Q2 was slow, they said—planned slow. Volumes dipped, but conviction didn’t. Management sounded like a coach whose star player missed a match but swears the trophy is still coming home.
Between value-added pipes, OEM name-dropping, and a Maharashtra mega-plant that won’t trouble the balance sheet anytime soon, this concall was less about excuses and more about controlled ambition.
If you like steel stories where EBITDA per ton matters more than headlines—and where CapEx is promised but deferred like a polite Indian wedding invite—read on. It gets interesting, and occasionally entertaining.
2. At a Glance
- Revenue ₹797 Cr (H1, +21%) – Monsoon tried, demand shrugged it off.
- Volumes +21% H1 YoY – Q2 soft, H2 carrying the redemption arc.
- EBITDA margin 12.6% – Steel prices softened, margins didn’t flinch.
- 97% value-added mix – Commodity steel officially shown the exit.
- Debt-equity 0.65x – Balance sheet lifting weights responsibly.
- 30% volume CAGR guidance – Management said it thrice, so it must be true.
3. Management’s Key Commentary
“Q2 softness was due to planned maintenance and extended monsoon.”
(Translation: Don’t overthink it, nothing broke 😏)
“97% of our sales are value-added products.”
(Translation: We don’t do boring steel.)
“EBITDA margins remained strong despite pricing pressure.”
(Translation: Integration saved the day.)
“We are confident of achieving 30% volume growth.”
(Translation: Please don’t make us revise guidance.)
“The Maharashtra plant will be done in phases over eight years.”
(Translation: Relax, no CapEx heart attack coming.)
“We are focused only on profitability.”
(Translation: Volumes are nice, margins pay salaries.)
4. Numbers Decoded
Metric | Q2 / H1 FY26 | What It Actually Says
---------------------------|--------------------|-----------------------
H1 Revenue | ₹797 Cr (+21%) | Demand never left
H1 Volume | 1.38 lakh MT | Scale building quietly
EBITDA (H1) | ₹100 Cr | Margins defended well
EBITDA/ton (Q2) | ~₹7,100 | Shutdown tax paid
Value-added contribution | 97% | Commodity risk diluted
Debt-to-equity | 0.65x | Bankers sleeping well
Lower EBITDA/ton wasn’t demand trouble—it was fixed costs sulking during shutdown.
5. Analyst Questions (Decoded)
- HRC vs Patra pricing gap?
Management: Apples, oranges, and some scalp in between.
- Regional competitors pressure?
Hariom: “We sell quality, not price wars.”
- Why EBITDA dipped YoY?
Maintenance + fixed costs, not margin
