Hi-Tech Pipes LimitedQ1 FY27 Results & Financial Update

Export markets targeted for structural expansion include Europe, America, Canada, and Australia, backed by strong initial customer retention and repeat ordering.

Current EBITDA per ton profiles stand at INR 4,500 to INR 5,000 for DFT and coated products, and upward of INR 6,000 for API pipes.

Construction and infrastructure account for roughly 50% of end applications, water and oil & gas transportation represent 20%, and the remainder comprises engineering, solar, and specialized segments.

Demand from infrastructure and construction remains robust, with several projects that were previously on hold now actively progressing.

The company remains on track to achieve its 2 million tons capacity vision by FY29, with expansion projects underway across Uttar Pradesh, Andhra Pradesh, and Gujarat facilities, and an additional 0.5 million tons set to start construction by the end of FY27.

The Direct Forming Technology (DFT) facility at Sanand Unit-II Phase-3 is slated to be operational by Q3 FY27. The API pipes facility and the integrated manufacturing plant at Hindupur (ERW tubes, solar tubes) are expected to go live by Q4 FY27.

Management expects EBITDA per ton to migrate toward the INR 4,000 band by the end of FY28 as new plants achieve critical mass, introductory dealer discounts are phased out, and high-margin VAP contributions scale up to 45%-50%.

Purchase of stock-in-trade decreased from INR 420 crores in Q4 FY26 to INR 280 crores in Q1 FY27, reflecting the high-seas disposal of an import consignment impacted by geopolitical conditions; normalized levels are expected at INR 50 crores to INR 100 crores.

Finance costs remained elevated near INR 15 crores for Q4 and Q1 due to the simultaneous operationalization of three plants over a 4-to-5-month span, which temporarily inflated working capital drawdowns before normalizing with optimum capacity utilization.

Reiterated full-year FY27 sales volume guidance of 6.5 lakh to 7 lakh tons, targeting 1 million tons for FY28.

Total capex required for the 1 million ton expansion program is estimated at INR 650 crores, of which INR 200 crores is allocated for FY27, leaving INR 350 crores to be deployed over the subsequent two financial years.

In response to Lokesh Kashikar regarding monsoon and geopolitical headwinds, Anish Bansal noted that Q2 volumes are expected to mirror Q1, while H2 is anticipated to be significantly stronger following the softening of seasonal constraints.

Addressing Pallav Agarwal's query on high blended realizations (~INR 90,500 per ton), management clarified that realization will normalize toward approximately INR 75,000 per ton with higher sales utilization, while per-ton EBITDA expands.

Clarifying earlier guidance confusion, management confirmed that out of the total INR 650 crores capex program for the 1 million ton expansion, INR 300 crores was incurred previously (including FY26), leaving INR 350 crores across FY27 and FY28.