1. At a Glance
Sambhv Steel just delivered its highest-ever revenue in Q1 FY26—₹559 Cr in sales and ₹33.4 Cr in PAT. That’s the good news. The other news? It trades at a P/E of 70, inventory days ballooned to 87, and promoter holding hasn’t moved a muscle post-IPO. If you’re wondering whether this steel story is strong or just shiny, keep reading.
2. Introduction with Hook
Imagine launching an IPO, bagging ₹540 Cr, and in the same breath announcing your “highest ever quarter.” That’s Sambhv Steel—India’s latest industrial thriller. The only thing rising faster than its sales are…well, its debtor days and valuation multiples.
Think: “Steel meets startup optimism—with a balance sheet that’s starting to sweat.”
3. Business Model (WTF Do They Even Do?)
Sambhv Steel manufactures:
- ERW black pipes
- Pre-galvanized (GP) pipes
- CRFH (Cold Rolled Full Hard) pipes
- GI pipes
- Steel door frames
The twist? They use in-house intermediate materials like HR coils, CR coils, sponge iron, and blooms.
“Basically, they make tubes out of steel. Then sell those tubes with enough margin to pay for IPO roadshows.”
Industrial. Vertical-integrated. And ready to flex.
4. Financials Overview
Q1 FY26 Performance:
- Revenue: ₹559 Cr (↑69% YoY)
- EBITDA: ₹73 Cr (↑58% YoY)
- PAT: ₹33.4 Cr (↑35% YoY)
- OPM: 13%
- EPS: ₹1.13
FY25 (Annual):
- Revenue: ₹1,511 Cr
- PAT: ₹58 Cr
- ROCE: 13.9%
- ROE: 12.4%
Margins steady, scale increasing, PAT still small—but growth curve is steeper than your new EMIs.
5. Valuation
- CMP: ₹137
- Market Cap: ₹4,039 Cr
- P/E: 69.6
- Book Value: Not disclosed clearly; implied ~₹25
- P/B: ~5.5x (estimated)
Fair Value Range:
- P/E 30x on FY26E PAT of ₹75 Cr: ₹2,250 Cr → FV: ₹75–80/share
- EV/EBITDA 15x on FY26E EBITDA ₹250 Cr: EV ~₹3,750 Cr → FV: ₹120–125/share
“If you’re buying at 70x earnings, you better believe steel has become the new SaaS.”
6. What’s Cooking – News, Triggers, Drama
- Q1 FY26: RECORD quarter
- IPO raised ₹540 Cr (Apr 2025)
- Divested Clean Max Opia stake post-IPO
- Working capital days down to 33.2
- Investor con-call scheduled (July 25)
No red flags, no auditors quitting. Just one big shiny post-IPO high.
“Smooth sailing… so far. Watch that debt and inventory though.”
7. Balance Sheet
| Metric | Mar 2025 |
|---|---|
| Equity Capital | ₹241 Cr |
| Reserves | ₹255 Cr |
| Borrowings | ₹536 Cr |
| Other Liabilities | ₹403 Cr |
| Fixed Assets | ₹715 Cr |
| CWIP | ₹86 Cr |
| Investments | ₹65 Cr |
| Total Assets | ₹1,434 Cr |
“Balance sheet got a six-pack post-IPO. But debt’s still flexing at ₹536 Cr.”
8. Cash Flow – Sab Number Game Hai
| Year | Ops CF | Inv CF | Fin CF | Net CF |
|---|---|---|---|---|
| FY23 | ₹66 Cr | -₹85 Cr | ₹19 Cr | ₹0 Cr |
| FY24 | ₹142 Cr | -₹312 Cr | ₹177 Cr | ₹7 Cr |
| FY25 | ₹127 Cr | -₹262 Cr | ₹132 Cr | -₹2 Cr |
Operating cash solid. But investing cash flow looks like a shopping spree at IKEA—endless capex.
9. Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROCE | 13.9% |
| ROE | 12.4% |
| OPM | 10–13% |
| D/E | ~1.25x |
| Debtor Days | 36 |
| Inventory Days | 87 |
| Cash Conv. Cycle | 11 Days |
“ROE is healthy, but inventory bloated like a fridge before Diwali.”
10. P&L Breakdown – Show Me the Money
| Year | Revenue (Cr) | EBITDA (Cr) | PAT (Cr) |
|---|---|---|---|
| FY23 | ₹937 | ₹117 | ₹60 |
| FY24 | ₹1,286 | ₹160 | ₹82 |
| FY25 | ₹1,511 | ₹155 | ₹58 |
Q1 FY26 already clocked ₹559 Cr rev and ₹33 Cr PAT → on track for ₹2,200+ Cr revenue and ₹120 Cr PAT if momentum sustains.
“If FY26 ends like Q1 began, they’ll beat FY25 earnings by 2x.”
11. Peer Comparison
| Company | Revenue (TTM) | PAT | P/E | ROE |
|---|---|---|---|---|
| APL Apollo | ₹20,885 Cr | ₹801 Cr | 58.4 | 19.4% |
| Ratnamani Metals | ₹5,186 Cr | ₹541 Cr | 36.2 | 16% |
| Jindal Saw | ₹20,828 Cr | ₹1,473 Cr | 9.9 | 13.7% |
| Sambhv Steel | ₹1,511 Cr | ₹58 Cr | 69.6 | 12.4% |
“It’s like the youngest sibling trying to wear dad’s blazer—aspirational, but oversized for now.”
12. Miscellaneous – Shareholding, Promoters
| Category | Jun 2025 |
|---|---|
| Promoters | 56.14% |
| FIIs | 3.61% |
| DIIs | 6.82% |
| Public | 33.43% |
| Shareholders | 1,30,812 |
Promoter stake unchanged post-IPO = confidence? Or wait-and-watch?
13. EduInvesting Verdict™
Sambhv Steel is punching above its weight—and for now, landing hits. The IPO gave it war-chest money, Q1 FY26 looks muscular, and vertical integration gives it margin muscle.
But…
P/E is 70
Inventory is chunky
Q1 results may already be “peak enthusiasm”
“Looks like a well-oiled pipe machine. Just don’t forget—steel shines, but it also rusts.”
Metadata:
Written by EduInvesting Team | 24 July 2025
Tags: Sambhv Steel, IPO, Pipes, Q1 FY26, EduInvesting Premium
