1. At a Glance – Steel, Sweat & Slight Sarcasm
Hariom Pipe Industries Ltd (HPIL) is what happens when a regional steel processor wakes up one day and decides it wants to be vertically integrated, backward integrated, forward integrated, and possibly reincarnated as a power producer too. At a market cap of about ₹1,198 crore and a current price hovering near ₹386, the stock has corrected sharply—down ~21% in six months—while the business itself keeps pumping out steel like there’s no tomorrow.
Q3 FY26 (quarter ended December 2025) delivered ₹363 crore revenue, up 21% YoY, with PAT of ₹11.6 crore. Margins? Respectable but not fireworks—OPM around 12%. Return ratios are middle-class honest: ROCE 14.1%, ROE 11.9%. Debt sits at ₹418 crore, giving a debt-to-equity of 0.69, which is not scary, but also not “sleep-like-a-baby” territory.
The real headline? 97% of revenue now comes from value-added products, up from 66% in FY22. Translation: HPIL is trying very hard to move away from commodity hell. Whether the market believes this transformation story—especially with a ₹3,135 crore mega steel plant MoU in Gadchiroli—is the billion-rupee question.
Curious already? Good. Steel stories are boring only until they’re not.
2. Introduction – From Pipes to Power Plays
HPIL started life in 2008 making steel pipes. Simple. Honest. Tubes in, money out. But somewhere along the journey, management decided that just rolling pipes wasn’t ambitious enough. Why stop at pipes when you can control sponge iron, billets, HR strips, GP coils, CRCA, scaffolding—and while you’re at it, throw in a solar power subsidiary for diversification masala?
Fast-forward to today, HPIL runs four manufacturing facilities across Telangana, Andhra Pradesh, and Tamil Nadu, with installed capacity of 701,232 MTPA and 800+ SKUs. This isn’t a one-product, one-customer story. It’s a sprawling steel buffet serving auto components, solar structures, fencing, furniture, gym equipment, and even elevator frames. Basically, if it’s made of steel and not a battleship, HPIL probably has a SKU for it.
But here’s the catch: steel is cyclical, brutal, and unforgiving. Margins swing faster than Indian Twitter sentiment. HPIL’s response? Backward integration with hot charging, focus on value-added galvanised and
coated products, and a heavy tilt towards dealer-led distribution (85% of revenue).
The result so far: explosive top-line CAGR (58% over 5 years), but profit growth slowing in TTM. And now, management wants to go even bigger—with a 1.5 MTPA integrated steel plant in Gadchiroli, Maharashtra. Ambitious? Yes. Risky? Also yes. I hope you like drama, because this story has plenty.
3. Business Model – WTF Do They Even Do?
Let’s simplify this before your chai gets cold.
HPIL is a vertically integrated steel manufacturer. That means:
- Upstream: Sponge iron (36,000 MTPA).
- Midstream: MS billets (104,232 MTPA), HR strips (124,000 MTPA).
- Downstream / Value-Added:
- MS tubes & pipes
- GP & GI pipes
- GP, HRPO, CRCA, CRFH coils
- Scaffolding
The genius (and headache) lies in hot charging—using hot billets directly for rolling, saving energy, time, and cost. This is how HPIL tries to defend margins in a business where everyone else is fighting over paise per kilo.
Revenue comes largely via:
- Dealer network: 85%
- Direct B2B: 15%
Geographically, HPIL is southern-India heavy, with 900+ dealers, especially in Telangana, Karnataka, Tamil Nadu, and Andhra Pradesh. Maharashtra is still small, which makes the Gadchiroli MoU… interesting, to say the least.
Product mix tells the real story:
- GP coils & others: 46%
- MS tubes & pipes: 37%
- GP pipes: 13%
- Everything else: rounding error
So yes, HPIL is less “steel commodity” and more “processed, coated, value-added steel”. The question is:
