Breakdown of 21% same-store sales growth into volume vs. price and steel vs. non-steel?

We will probably take it offline. Price hasn’t played much of a part; steel prices moved and then softened, so likely largely neutral. Detail breakup we will look at later.

Are we on track for 25% steel volume growth in the remaining three quarters to hit 1.2mn tonnes?

Already seeing very positive volume growth in June and July, and second half is always strong. Confident of achieving 1.2mn tonnes unless there are absolutely unforeseen headwinds.

EBITDA margin moderation this quarter – impact of fixed contracts or inventory losses?

Yes, steep price correction in May-June caused inventory erosion of around ₹10 Cr, impacting margin by ~50 bps. Adjusted EBITDA would have been ~3.8%. In steady state, targeting 3.5%+.

What gives confidence in 25% non-steel growth when building material OEMs are not pointing to such recovery?

Sanitaryware, our largest non-steel segment, grew 32%. Tile demand is rebounding after a near washout April. Also seeing uptake in UPVC roofing and accessories.

Can we expect 20% revenue growth with 3.5% EBITDA margins for FY27, and margin improvement in FY28?

Yes, that is our target. Medium-term target is ~4% EBITDA while maintaining 20% steel volume growth and 25% non-steel growth.

Given strong cash generation and high ROCE, how will cash be utilized?

Will allocate to private label promotion, value-added steel infrastructure (warehousing, cutting capabilities), reduce acceptances/borrowings, and evaluate suitable acquisitions.

Shankara Buildpro Q1 FY27 Earnings Call — Analysis (NSE: BUILDPRO)

Shankara Buildpro starts FY27 with 10% steel volume growth in a soft quarter, reaffirms 1.2mn-ton full-year target as non-steel rebounds 15% and demand recovers from June.

11 Aug 2026 · Analysis by Alpha Inflection

Result quality: stable — Steady quarter. Management sentiment: optimistic.

The take

Q1FY27 Revenue ₹1,890 Cr ( +21% YoY ) . New guidance — FY27 fy27 non-steel revenue growth 25% . New story: Steel volume resilience in soft quarter .

Results

Revenue ₹1,890 Cr +21% YoY; EBITDA ₹62 Cr +17% YoY; PAT ₹35.8 Cr +12% YoY; steel volumes 0.25 mn tonnes +10% YoY; non-steel revenue ₹165 Cr +15% YoY.

Financial highlights

Shankara Buildpro Q1 FY27 reported figures
Metric	Value	Change	Basis
Revenue	₹1,890 Cr	+21%	yoy · Q1FY27
EBITDA	₹62 Cr	+17%	yoy · Q1FY27
EBITDA margin	3.26%		point_in_time · Q1FY27 · Q1FY27 margin
PAT	₹35.8 Cr	+12%	yoy · Q1FY27
Steel volume	2.5 lakh tonnes	+10%	yoy · Q1FY27
Steel revenue	₹1,725 Cr	+21%	yoy · Q1FY27
Non-steel revenue	₹165 Cr	+15%	yoy · Q1FY27
Same-store sales growth	21%		point_in_time · Q1FY27 · Q1FY27 vs prior year quarter
ROCE	35%		point_in_time · Q1FY27
Working capital days	27 days		point_in_time · Q1FY27 · end of Q1FY27
Total borrowings (including acceptances)	₹575 Cr		point_in_time · Q1FY27 · as of June-end FY27

Guidance

FY27 steel volume target of 1.2mn tonnes (20% growth) and non-steel growth of 25% reiterated; medium-term margin target of 4% EBITDA with 20% steel volume growth maintained.

What management committed to

Shankara Buildpro remains on course to achieve steel volume of 1.2 million tonnes for FY27. — 1.2 million tonnes, FY27
Shankara Buildpro targets 25% growth in non-steel revenue for FY27. — 25%, FY27
Shankara Buildpro is on track for ~20% revenue growth with 3.5% EBITDA margin in FY27. — 20% revenue growth, 3.5% EBITDA margin, FY27
Shankara Buildpro plans to add around 5 more fulfillment centers in the coming quarters of FY27 (in addition to the 3 already added in Q1). — around five more, FY27
Medium-term, Shankara Buildpro targets EBITDA margin of around 4% while maintaining 20% steel volume growth and 25% non-steel growth. — around 4% EBITDA, 20% steel volume growth, 25% non-steel growth, medium term
Shankara Buildpro aims to reach annual steel sales of 2 million tonnes in approximately 4 years (~FY30). — 2 million tonnes, around 4 years
The board has proposed a 1:5 stock split (face value ₹10 to ₹2) subject to shareholder and regulatory approvals. — 1:5 stock split
Shankara Buildpro will invest in infrastructure for value-added steel products (cut-to-length, laser cutting) to serve OEM customers and expand customer base.
Shankara Buildpro is increasing its private-label/white-label product range to improve retail segment profitability.

Key themes

Steel resilience and non-steel recovery in a challenging macro

How the narrative shifted

Steel volume resilience in soft quarter: Management positions 10% volume growth as market-share gain, highlighting multi-brand sourcing and deep network that capture demand even when industry is flat.
Non-steel recovery after macro lull: Non-steel rebound is framed as early validation of a projected resurgence, with sanitaryware up 32% and tile recovering; management ties 25% growth target to this momentum.
Cautious margin guidance despite strong underlying: Management highlights a one-off ₹10 Cr inventory loss (50 bps hit) but guides prudently to 3.5% margin while noting steady-state could be higher, explicitly citing the need for caution.
Network expansion via fulfillment centers: Three centers added in Q1, five more planned; combined with 34 touchpoints, expansion extends reach into tier-2/3 towns and bolsters omnichannel depth.
Shift toward value-added steel and private labels: constructive

Operational commentary

Added three fulfillment centers in Mangalore, Mumbai (Thrissur) and 34 customer touchpoints across 45 towns in 10 states; plans to add ~5 more fulfillment centers in coming quarters.
Non-steel rebound led by fittings & sanitaryware (+32%) and accessories & electricals (+40% on small base); tile vertical hit by energy crisis but recovering from May-June.
Strategic focus on value-added steel infrastructure (cut-to-length, laser cutting) to serve OEM customers and on expanding private-label/white-label products to lift retail profitability.
Competitive intensity from start-ups and unorganized players moderating as smaller competitors retreat due to inventory losses and credit constraints.
Stock split proposed (1:5, face value ₹10 to ₹2) to improve retail participation and liquidity, subject to approvals.
Post-demerger, exclusive focus on asset-light retail and trading marketplace; manufacturing separated into another entity.

Analyst Q&A

Q. Breakdown of 21% same-store sales growth into volume vs. price and steel vs. non-steel?
We will probably take it offline. Price hasn’t played much of a part; steel prices moved and then softened, so likely largely neutral. Detail breakup we will look at later.
Q. Are we on track for 25% steel volume growth in the remaining three quarters to hit 1.2mn tonnes?
Already seeing very positive volume growth in June and July, and second half is always strong. Confident of achieving 1.2mn tonnes unless there are absolutely unforeseen headwinds.
Q. EBITDA margin moderation this quarter – impact of fixed contracts or inventory losses?
Yes, steep price correction in May-June caused inventory erosion of around ₹10 Cr, impacting margin by ~50 bps. Adjusted EBITDA would have been ~3.8%. In steady state, targeting 3.5%+.
Q. What gives confidence in 25% non-steel growth when building material OEMs are not pointing to such recovery?
Sanitaryware, our largest non-steel segment, grew 32%. Tile demand is rebounding after a near washout April. Also seeing uptake in UPVC roofing and accessories.
Q. Can we expect 20% revenue growth with 3.5% EBITDA margins for FY27, and margin improvement in FY28?
Yes, that is our target. Medium-term target is ~4% EBITDA while maintaining 20% steel volume growth and 25% non-steel growth.
Q. Given strong cash generation and high ROCE, how will cash be utilized?
Will allocate to private label promotion, value-added steel infrastructure (warehousing, cutting capabilities), reduce acceptances/borrowings, and evaluate suitable acquisitions.

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