01 — At a Glance
IPO Euphoria Meets Q3 Reality. Guess Who’s Losing?
- 52-Week High / Low₹149 / ₹80.7
- Q3 FY26 Revenue₹589 Cr
- Q3 FY26 PAT₹24.1 Cr
- Q3 FY26 EPS₹0.82
- Annualised EPS (Q1-Q3 Avg × 4)₹3.96
- Book Value / Share₹33.2
- Price to Book2.85x
- Current Debt₹218 Cr (down from ₹536 Cr)
- IPO Proceeds₹440 Cr (July 2025)
- Capacity Installed~16.98 Lac MTPA
Flash Summary: Sambhv Steel delivered Q3 FY26 PAT of ₹24.1 crore — revenue up 60% YoY to ₹589 crore. The 9-month show has been stellar: 70% revenue growth and 110% PAT growth. But the stock has now contracted 22.3% in 6 months, sitting at a dizzying 26.8x P/E and 2.85x P/BV. Fresh IPO or not, that’s the kind of valuation that requires either Godly execution or really good auditor-approved comedy.
02 — Introduction
The Goyal Family’s Pipe Dream That Just Got Listed
Picture this: It’s 2017 in Raipur, and the Goyal family — who’ve been playing sponge iron bingo since 2009 — decides to buy an existing company called Sambhv Sponge Power and rebrand it. Fast forward eight years: they’ve built India’s most integrated steel tube and pipe manufacturing beast, just raised ₹440 crore in an IPO, and are now trading at a P/E that makes institutional investors break into a cold sweat.
Sambhv Steel Tubes is a vertical dream. They own sponge iron mines (essentially). They make blooms and slabs. They roll their own HR coils. They weld pipes. They galvanize pipes. They’re now making stainless steel coils and pipes. And they run a 25 MW captive power plant so they don’t have to pay the grid like a sucker. It’s the kind of “do everything in-house” philosophy that would make a South Indian Ayyappa devotee proud.
The numbers are good, no doubt. 9M FY26: Revenue ₹1,728 crore (up 70% YoY), PAT ₹88 crore (up 110% YoY). Q3 alone: Revenue ₹589 crore (up 60% YoY). The management just finished commissioning two mega capex phases worth ₹347 crore. But here’s the kicker — they’re now guiding for a greenfield expansion of ₹7,550 crore (yes, seven and a half thousand crore) to be built by Q4 FY27. The stock market loves growth stories, but at 26.8x P/E, you’re not buying a story — you’re buying the audio book, the director’s cut, and the limited-edition director’s commentary.
CARE Ratings: A; Stable (Sep 2025) — CARE reaffirmed Sambhv’s ratings post-IPO deleveraging. The agency noted “consistent growth in scale” and “mitigation of project risk” with successful commissioning of the new sponge iron, steel melting, and GP divisions. The stable outlook assumes the company sustains profitability and doesn’t blow the greenfield capex, which is a big assumption in the Indian steel industry.
03 — Business Model: From Sponge to Stainless Ambition
They Make Pipes. But They Might Make Anything Soon.
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