Sarthak Metals LimitedQ1 FY27 Results & Financial Update
Sarthak Metals Limited: Q1 FY27 standalone results and company financials – revenue ₹55.21 Cr, PAT ₹1.33 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
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Quarterly Results AnalysisExplore Sarthak Metals Q1 FY27 quarterly results and earnings: revenue, profit (PAT), EBITDA, margins, YoY and QoQ growth, order book or business updates where reported, financial performance and management commentary. Reported figures and Nivata calculations are shown separately; no buy, sell or hold recommendation is provided.
Quarter overview
Quarterly earnings analysis
Sarthak Metals Limited reported revenue from operations of Rs 55.21 crore for the first quarter ended June 30, 2026, reflecting steady operational engagement across its core metallurgical segments despite seasonal headwinds typical of the first quarter.
The cored wire division experienced continued order momentum, with volumes growing by 7% year-on-year to 1,532 tonnes and price realizations averaging Rs 2.46 lakh per tonne. Ferro titanium remained a particular area of strength supported by technical expertise and limited market competition.
The aluminium flipping coils division faced continued headwinds during the quarter, with volumes declining 23% year-on-year to 202 tonnes due to tight scrap availability following export restrictions implemented by major exporting nations such as the UAE in June 2026.
Conversely, the welding division emerged as a strong growth pillar, delivering quarterly revenue of Rs 5.1 crore with volumes surging 94% year-on-year to 458 tonnes, supported by rising institutional acceptance and approvals from bodies like RDSO and BIS.
In biotechnology, management maintained a disciplined and measured approach, limiting capital deployment to Rs 50 lakhs primarily for a pilot R&D facility in Nagpur, while evaluating regional overcapacity issues in the ethanol sector before committing further funds.
01 · Business model
What does Sarthak Metals do?
Sarthak Metals Limited is a prominent manufacturer and exporter of cored wires, aluminium flipping coils, and wire feeder machines, catering primarily to the steel manufacturing industry. Headquartered in Bhilai, Chhattisgarh, the company operates state-of-the-art manufacturing facilities strategically located in close proximity to major domestic steel mills.
The company's primary product line, cored wires, serves as an essential metallurgical tool used for steel refining, alloy addition, deoxidation, and desulphurization during the ladle treatment stage. Sarthak holds an established manufacturing capacity of 10,000 tonnes per annum (TPA) for cored wires and 15,000 TPA for aluminium flipping coils.
In recent years, the company has expanded its portfolio into complementary industrial categories, including flux-cored welding wires targeting import substitution and exploratory initiatives in biotechnology focused on enzyme production and biofuel integration.
Sarthak maintains a robust customer base characterized by long-term relationships with leading public and private steel producers, generating a high share of repeat business supported by extensive warehousing and stringent quality control standards.
02 · Historical context
What shaped the business before this quarter
Incorporated in 1995, Sarthak initially operated an industrial gases unit before commissioning its first cored wire mill in-house in 2002 to cater to the growing domestic metallurgical industry.
The company commenced production of aluminium flipping coils in 2008 with an in-built mill, followed by backward integration into aluminium wire rod production in 2018.
Sarthak completed its initial public offering and listed on the BSE SME platform in 2017 before transitioning to the BSE main board in November 2021. Subsequently, the company ventured into flux-cored wire manufacturing in 2023 and biotech operations in 2024.
03 · Financial snapshot
Current-quarter financial snapshot
| Metric | Q1 FY27 |
|---|---|
| Revenue from operations | ₹55.21 Cr |
| Total income | ₹56.61 Cr |
| Profit before tax | ₹2.07 Cr |
| Profit after tax | ₹1.33 Cr |
| EPS | ₹0.97 |
04 · Why it moved
Why the quarter looked the way it did
What drove revenue
Cored wires revenue reached Rs 37 crore in Q1 FY27, driven by a 7% year-on-year increase in sales volume to 1,532 tonnes and stable realizations at Rs 2.46 lakh per tonne.
The welding consumables segment generated Rs 5 crore in revenue during Q1 FY27, achieving a 94% year-on-year volume expansion to 458 tonnes as brand acceptance scaled across construction and fabrication applications.
Aluminium flipping coils contributed Rs 7 crore in revenue for the quarter, experiencing a 23% year-on-year volume decline to 202 tonnes while realizations increased by 31% sequentially to Rs 3.47 lakh per tonne.
What drove margins
Cost of materials consumed was Rs 0.99 crore and purchases of stock-in-trade stood at Rs 45.66 crore, reflecting shifts in procurement patterns and input availability.
Employee benefit expenses were reported at Rs 3.88 crore, while other expenses stood at Rs 3.78 crore for the quarter.
Finance costs stood at Rs 0.26 crore, and depreciation and amortization expenses were reported at Rs 0.62 crore for Q1 FY27.
05 · Demand, customers & order book
Where demand is coming from
The company maintains strong customer retention, with approximately 85% of business derived from repeat orders and enduring relationships extending over a decade with major steel plants.
The welding division's distribution network expanded to over 10 dealers spanning more than five states, generating rising repeat orders.
06 · Segments, products & geography
Which parts of the business are doing the work
Segments and products
Ferro titanium products showed particular strength during the quarter, supported by specialized technical expertise and limited domestic competition.
Expansion in the welding division was supported by key institutional accreditations including RDSO and BIS, facilitating access to government and large-scale industrial procurement opportunities.
The biotechnology initiative remained in a pilot phase centered around Solid-State Fermentation (SSF) at the Nagpur facility, with cumulative capital deployment maintained at Rs 50 lakhs.
Geography and market mix
International sourcing of aluminium scrap faced geographic headwinds following the UAE's June 2026 export ban and similar restrictions across multiple countries.
07 · Capacity, projects & execution
What is being built, commissioned or delivered
Capacity, production and utilisation
The company maintains an installed capacity of 10,000 TPA across 4 manufacturing lines for cored wires, 15,000 TPA across 3 lines for aluminium flipping coils, and 3,600 TPA across 3 lines for flux-cored welding wires.
Projects, capex and execution
Management maintained a cautious approach to capital expenditure, deferring major capacity expansion in biotechnology due to regional overcapacity in the ethanol industry.
08 · Strategy & new businesses
How the company is trying to change its growth mix
Sarthak continued to target the domestic import substitution opportunity in flux-cored welding wires, where India previously relied predominantly on Chinese imports.
The company pursued biotechnology applications integrating enzyme production with ethanol distilleries while exercising capital discipline amid sector-wide capacity additions.
09 · Reported developments
What changed operationally
Welding division volumes expanded by 94% year-on-year to 458 tonnes in Q1 FY27, demonstrating rapid market acceptance.
The company recorded Rs 6.34 lakh of unrealized gains on foreign currency transactions as of June 30, 2026.
10 · Pressure points & risks
What is not going smoothly
Regulatory restrictions, including the UAE's June 2026 scrap export ban, tightened global scrap availability and drove up primary metal prices, impacting aluminium flipping coil volumes.
11 · Cash flow & balance sheet
Profit is one thing. Cash and funding tell another part of the story.
Working capital management remained a core priority, supported by structured inventory buffers of 2,000+ tonnes for cored wires and 4,000+ tonnes for aluminium flipping coils.
Capital allocation & funding
Current borrowings stood at Rs 5.23 crore as of June 30, 2026, down from Rs 6.60 crore as of March 31, 2026.
12 · Management guidance & targets
What management is targeting from here
Management reiterated its aspiration to scale the welding consumables division towards an annual sales target of Rs 25 crore in FY27.
13 · Beyond the numbers
What changed beyond the numbers
Reported update
Board Committee Reconstitution
The Board approved the reconstitution of key board committees, including the Audit Committee and Nomination and Remuneration Committee, effective August 24, 2026.
Reported update
Cost Audit Report Approval
The Board approved the Cost Audit Report for the financial year 2025-26 during the board meeting held on August 13, 2026.
14 · Previous-quarter changes
What changed since the previous quarter
Revenue from operations moderated from Rs 61.99 crore in Q4 FY26 to Rs 55.21 crore in Q1 FY27, reflecting seasonal first-quarter patterns.
15 · Key Q&A
The quarter, answered directly
What does Sarthak Metals do?
Sarthak Metals Limited is a prominent manufacturer and exporter of cored wires, aluminium flipping coils, and wire feeder machines, catering primarily to the steel manufacturing industry. Headquartered in Bhilai, Chhattisgarh, the company operates state-of-the-art manufacturing facilities strategically located in close proximity to major domestic steel mills.
What is the clearest takeaway from Q1 FY27?
Sarthak Metals Limited reported revenue from operations of Rs 55.21 crore for the first quarter ended June 30, 2026, reflecting steady operational engagement across its core metallurgical segments despite seasonal headwinds typical of the first quarter.
What drove revenue or demand?
Cored wires revenue reached Rs 37 crore in Q1 FY27, driven by a 7% year-on-year increase in sales volume to 1,532 tonnes and stable realizations at Rs 2.46 lakh per tonne.
What mattered most for margins or profitability?
Cost of materials consumed was Rs 0.99 crore and purchases of stock-in-trade stood at Rs 45.66 crore, reflecting shifts in procurement patterns and input availability.
What changed operationally beyond the headline numbers?
The company maintains an installed capacity of 10,000 TPA across 4 manufacturing lines for cored wires, 15,000 TPA across 3 lines for aluminium flipping coils, and 3,600 TPA across 3 lines for flux-cored welding wires.
What is management guiding or targeting from here?
Management reiterated its aspiration to scale the welding consumables division towards an annual sales target of Rs 25 crore in FY27.
16 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
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17 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Welding Division Scaling: Monitor quarterly progress towards the targeted Rs 25 crore annual sales milestone for the welding division.
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