Sambhv Steel Tubes Ltd Q2 FY26: ₹580 Cr Sales, 446% Profit Surge, ₹9,350 Mn Expansion Plan – Chhattisgarh’s Iron Men Are Rolling Heavy!

1. At a Glance

Raipur’s owniron gym—Sambhv Steel Tubes Ltd (SSTL)— is lifting its way up India’s steel league. The company clocked₹580 crore in revenuefor Q2 FY26 with aPAT of ₹30 crore, up a jaw-dropping446% YoY, proving that steel indeed bends for no one. With amarket cap of ₹3,583 croreand astock price of ₹122(as of Nov 7, 2025), this IPO baby of July 2025 is already flexing like it’s been on the market forever.

Operating margins? A clean10%, because even in steel, polishing your EBITDA shine matters. ROE sits at12.4%, ROCE at13.9%, and a P/E of39.3means investors are paying premium rates for this Chhattisgarh muscle show.

No dividend yet — because apparently, Sambhv believes in “reinvesting every rupee back into metal and fire.” Fair enough. Add to that a₹9,350 million expansion planannounced for cold-rolling and a massive greenfield facility — and you know this company isn’t here for small talk; it’s building an empire one metric tonne at a time.

2. Introduction – The New Kid on the Steel Block

Incorporated in2018, Sambhv Steel Tubes Ltd is theposter child for India’s new-gen steel manufacturing ambition— a company that went from zero to ₹2,000 crore in sales within seven years. Based inRaipur, Chhattisgarh, SSTL is turning the city from a mandi of re-rollers into a hub for value-added steel pipes and tubes.

Its recent IPO of₹540 crore, listed onJuly 2, 2025, was met with enthusiasm — partly because of India’s infrastructure boom, and partly because investors love any company that sounds like it manufactures weapons of economic growth.

The company manufacturesERW black pipes, galvanized iron pipes, cold-rolled full hard pipes, and even steel door frames— because why stop at pipes when you can also make the frame for your customer’s front door?

Sambhv isn’t just making steel — it’s vertically integrating fromsponge iron to ERW tubes, all under one metallic roof. And unlike most small steel players who depend on external suppliers, this one has in-house production ofsponge iron, HR coils, blooms, and slabs. That’s right — they’re basically their own supplier.

And did we mention the25 MW captive power plant? In a world where power bills eat profit margins, Sambhv’s self-powering model keeps it both charged and cheap.

3. Business Model – WTF Do They Even Do?

Sambhv Steel Tubes is basically theThanosof mid-tier steel — it controls every step of the process. From making its ownsponge iron,blooms/slabs, andHR coils, to finishing it off asERW pipes,GP pipes, andsteel tubes, SSTL doesn’t leave any stone — or metal — unturned.

ItsRaipur-based manufacturing facilitiesatSarora (Tilda)andKuthrelare ISO-certified factories with a total capacity of16.98 lakh MTPA. Each plant sounds like an engineering student’s fantasy — conveyor belts, billet casters, hot rolling mills, and a captive power unit humming in the background like an industrial lullaby.

The products find use in everything fromhousing, agriculture, and telecom, tooil & gas, solar structures, and firefighting systems— basically, if it needs to stand upright or carry water, Sambhv probably makes the pipe for it.

In FY25, they achieved a jaw-droppingcapacity utilization of ~89% for sponge ironand70% for ERW pipes. So while most peers are busy “optimizing plant operations,” Sambhv is simplyusingtheirs efficiently.

4. Financials Overview

Let’s crunch the iron:

Annualized EPS = ₹4.08; P/E = 122 / 4.08 = 29.9x (approx.)

Commentary:So yeah — that’s not growth; that’s reincarnation. Sambhv’s quarterly profit exploded like a blast furnace with caffeine. YoY growth of446%isn’t something you see every day in steel, unless you