Steel stock with revenue growth guidance of 197% by FY28 to keep an eye on

Synopsis: Sambhv Steel Tubes targets Rs. 4,500 crore revenue by FY28 with Rs. 930 crore greenfield expansion, projecting 10-14% EBITDA margins. Let’s dive into management’s roadmap.

A small-cap stainless steel tubes and coils manufacturer has announced aggressive expansion plans targeting Rs. 4,500 crore revenue by FY28, a 197% surge from current levels. This is backed by greenfield capex and capacity doubling initiatives.

Sambhv Steel Tubes Limited‘s stock, with a market capitalisation of Rs. 2,766 crores, fell to Rs. 93.90, hitting a low of up to 2.44 percent from its previous closing price of Rs. 91.66. However, the stock since listing has given a negative return of 3.8 percent.

Management Guidance

Sambhv Steel Tubes has outlined ambitious growth targets, projecting revenue of Rs. 4,500 crore in FY28, a significant 197% jump from the current Rs. 1,511 crore. The company is investing Rs. 50 crore in brownfield expansion to double its stainless steel coil capacity to 116,000 MT by FY26. Additionally, a major greenfield capex of Rs. 930 crore is underway, with Rs. 200 crore already deployed from internal funds and the remaining Rs. 730 crore planned through a mix of Rs. 600 crore debt and Rs. 130 crore internal funding by FY27.

The combined greenfield and brownfield expansions are expected to generate Rs. 5,500 crore in revenue by FY28. Management has guided for EBITDA margins in the range of 10-14%, indicating steady profitability alongside this aggressive capacity expansion. The strategic blend of debt and internal funding suggests a balanced approach to financing growth while managing financial leverage.

Q2 Financial Highlights

The company reported revenue of Rs. 580 crore in Q2FY26, marking an 83.5% YoY growth from Rs. 316 crore in Q2FY25 and a 3.8% QoQ increase from Rs. 559 crore in Q1FY26. The strong topline performance reflects robust demand momentum, with the company maintaining its growth trajectory from the previous quarter. Over the past three years, the company has delivered a sales CAGR of 23%, demonstrating consistent revenue expansion.

Profit stood at Rs. 30 crore in Q2FY26, a remarkable 500% YoY surge from Rs. 5 crore in Q2FY25, though it declined 9.1% QoQ from Rs. 33 crore in Q1FY26. Despite the sequential dip, profitability has improved significantly on an annual basis. However, the 3-year profit CAGR of -7% indicates historical volatility in earnings, while the ROE 3-year CAGR of 21% suggests improving capital efficiency and shareholder returns over the medium term.

About the company

Sambhv Steel Tubes Limited is an Indian company that makes strong steel pipes and tubes. It started in 2009 and is based in Hyderabad. The company produces ERW (electric resistance welded) steel pipes, galvanized pipes, and hollow sections used in water supply, construction, infrastructure, and agriculture. Sambhv is known for good quality products, modern factories, and serving customers across India and abroad. It is listed on stock exchanges and keeps growing with new technology and bigger production capacity.

Written By Fazal Ul Vahab C H

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