Hisar Metal Industries Ltd H1 FY26 Results – Stainless Steel Strips, Fire Fights, and Financial Friction: Margins Tight as a Rolling Mill!
1. At a Glance
Hisar Metal Industries Ltd — Haryana’s homegrown stainless steel warrior — might be small in market cap (₹91.1 crore), but its results always shine like its product lineup. The stock currently trades at ₹169, after a tough few quarters that saw the company battle falling sales, weaker profits, and even a literal fire at its plant. With a P/E of 36.9 and book value of ₹119, the market still gives it some love — or perhaps sympathy.
The company posted ₹59.7 crore in Q2 FY26 sales and a PAT of ₹0.85 crore, down 24% QoQ, with margins skating on stainless ice. ROE is a modest 5.06%, ROCE at 9.37%, and debt-to-equity slightly high at 1.07x — meaning their steel may be strong, but their balance sheet carries some weight. Dividend yield at 0.59% is barely enough for a cup of tea, but hey, the steel’s shiny.
So, what’s cooking in Hisar’s hot furnaces this half-year? Let’s unwrap this metallic mystery.
2. Introduction
Every investor dreams of catching a “multibagger.” But with Hisar Metal, you might just catch a “multi-roller.” Founded in 1991, this smallcap stainless steel player makes high-precision strips, coils, tubes, and pipes. It’s a typical desi manufacturing story — tons of steel, tonnes of depreciation, and a mountain of debt.
The past few years have been like watching a reality show: a fire at its cold rolling mill in October 2023, resumption of operations by January 2024, and new foil mill commissioning in March 2024. It’s almost as if the company thought, “Why settle for drama-free operations when we can make headlines with actual fire?”
Still, the comeback has been commendable. Despite FY25 challenges, the company resumed production quickly, expanded capacity with its new 20Hi Foil Mill for ultra-thin material, and even bagged an insurance settlement of ₹1.65 crore in FY25.
But investors aren’t cheering yet — margins have slipped, earnings have thinned (pun intended), and profitability resembles the foil they now produce: shiny, but wafer-thin.
3. Business Model – WTF Do They Even Do?
Hisar Metal Industries is like the backstage artist of India’s metal industry — not flashy like Tata Steel or JSW, but essential. It makes cold-rolled precision stainless steel strips and stainless steel welded tubes & pipes. Their strips are so thin (up to 0.08mm) that even your smartphone casing could envy the precision.
Their manufacturing setup includes:
2 x 6 Hi Cold Rolling Mills
3 x 4 Hi Cold Rolling Mills
10 Tube Mills
1 x 20 Hi Foil Mill (new addition)
Applications range from fiber optics and food equipment to pens, gaskets, and camera parts. Basically, they make the “small steel stuff” that the big guys don’t bother with.
If you imagine a car engine, a pen, and a piston ring — Hisar probably had a hand in all three. But like most mid-sized Indian manufacturers, they also do job work for larger steel companies. That’s the polite corporate way of saying “we make parts for others when our own orders are dry.”
4. Financials Overview
Let’s check how Q2 FY26 stacked up against peers — and its own past quarters.
Quarterly Performance (Figures in ₹ crore)
Metric
Latest Qtr (Sep 2025)
YoY Qtr (Sep 2024)
Prev Qtr (Jun 2025)
YoY %
QoQ %
Revenue
59.7
64.9
62.1
-8.0%
-3.9%
EBITDA
3.56
3.56
2.68
0.0%
+32.8%
PAT
0.85
1.12
0.42
-24.1%
+102.4%
EPS (₹)
1.57
2.07
0.78
-24.1%
+101.3%
The numbers scream volatility. Revenue dipped both YoY and QoQ, while profit doubled sequentially — but only because last quarter was abysmally low. It’s like celebrating that your temperature rose from 96°F to 98°F after being in the financial ICU.
Margins improved slightly QoQ (EBITDA up 33%), but remain far below peers like Ratnamani or APL Apollo.
At this point, Hisar Metal’s earnings graph looks like an ECG of a stressed accountant.
5. Valuation Discussion – Fair Value Range (Educational Only)
