1. At a Glance – Blink and You’ll Miss the Volatility
₹2,671 crore market cap. ₹90.7 stock price. Down ~27% in six months, down ~19% in three months, yet Q3 FY26 profit up 113% QoQ. Welcome to Sambhv Steel Tubes Ltd — a company that behaves like a gym bro on creatine: sudden muscle gain, followed by exhaustion.
Sales for the latest quarter clocked ₹5,891 mn, PAT ₹241 mn, operating margins hovering around 9%, and ROCE at 13.9% — not elite, not tragic, just… trying hard. Debt is ₹218 crore, D/E a manageable 0.22, promoters holding steady at 56.15%, no pledges, no drama there (for now).
But valuation? 25.7× P/E in an industry where the median is ~19×. Investors are clearly paying a premium for potential, not consistency. And potential, like hot steel, can either be shaped beautifully or burn your hands.
So the big question before we dive deep: is this a vertically integrated steel story in early innings, or just another post-IPO reality check?
2. Introduction – A 2018 Kid Playing in a 50-Year-Old Industry
Sambhv Steel Tubes was incorporated in 2018. That makes it a toddler in an industry dominated by uncles with moustaches older than this company. Yet, in just a few years, Sambhv has built a fully integrated steel ecosystem — sponge iron → billets/blooms → HR coils → CR coils → ERW & GI pipes → distribution.
This is not a “we buy HR coils and roll pipes” kind of setup. This is “we dig iron, melt iron, roll iron, coat iron, and then sell iron” energy.
The company rode the infrastructure and housing upcycle perfectly into its ₹540 crore IPO in July 2025, listed on both NSE and BSE, and instantly entered public market scrutiny — where excuses don’t work and quarterly numbers decide your mood.
FY25 was messy. Margins compressed. Working capital stretched. Inventory days ballooned. Then suddenly, FY26 quarters started showing revenue acceleration and profit bounce-back.
Classic steel cycle behaviour or actual operational improvement? Let’s peel the pipe
layer by layer.
3. Business Model – WTF Do They Even Do?
Imagine Sambhv as a steel thali.
Instead of ordering sabzi from outside (HR coils), they grow vegetables at home (sponge iron), cook the dal themselves (billets, blooms), make rotis in-house (HR & CR coils), and then serve plated food (ERW, GP, GI pipes).
What They Make
- ERW Black Pipes
- Galvanized Iron (GI) Pipes
- Pre-Galvanized (GP) Pipes
- Cold Rolled Full Hard (CRFH) Pipes
- Hollow Sections / Structural Tubes
- Steel Door Frames
Where It’s Used
Housing, infra, water transport, agriculture, automobiles, telecom, oil & gas, solar structures, fire-fighting systems — basically anywhere India is either building, transporting water, or pretending to be future-ready.
Why Integration Matters
Steel margins are thin. When raw material prices swing, non-integrated players bleed. Sambhv cushions that volatility by internal sourcing. This doesn’t make them immune, but it does make survival easier.
But integration also means heavy capex, high depreciation, and working capital stress. Steel is not a SaaS business. Cash leaves fast and returns slowly.
So again — scale helps, but execution decides.
4. Financials Overview – Numbers That Sweat Like Steel Mills
Quarterly Comparison (Standalone, ₹ crore)
| Metric | Latest Qtr (Dec-25) | YoY Qtr (Dec-24) | Prev Qtr (Sep-25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 589 | 369 | 580 | +59.6% | +1.6% |
| EBITDA | 51 | 38 | 60 | +34.2% | -15.0% |
| PAT | 24.1 | 11.3 | 30.0 | +113% | -19.7% |
| EPS (₹) | 0.82 | 0.47 | 1.02 | +74% | -19.6% |
Yes, YoY growth looks sexy. QoQ? Not so much. EBITDA and PAT dipped sequentially, which tells you margins are
