Venus Pipes Q2 FY26 Earnings Call — Analysis (NSE: VENUSPIPES)
Venus Pipes achieved its highest-ever quarterly revenue of ₹291.5 Cr, driven by 53% YoY export growth, and maintained FY26 revenue growth guidance of 25%.
The take
Revenue Q2FY26 ₹291.5 Cr ( +27.3% YoY ) . New guidance — FY26 fy26 revenue growth 25% . New story: Shift from unorganized to organized sector .
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Revenue Q2FY26 | ₹291.5 Cr | +27.3% | yoy · Q2FY26 · vs Q2 FY25 |
| Revenue H1FY26 | ₹568 Cr | +21.1% | yoy · H1FY26 · vs H1 FY25 |
| EBITDA Q2FY26 | ₹47.4 Cr | +16% | yoy · Q2FY26 · vs Q2 FY25 |
| EBITDA Margin Q2FY26 | 16.3% | +na | none · Q2FY26 |
| EBITDA H1FY26 | ₹92.3 Cr | +4% | yoy · H1FY26 · vs H1 FY25 |
| EBITDA Margin H1FY26 | 16.3% | +na | none · H1FY26 |
| PAT Q2FY26 | ₹26.1 Cr | +10% | yoy · Q2FY26 · vs Q2 FY25 |
| PAT Margin Q2FY26 | 8.9% | +na | none · Q2FY26 |
| Export Sales Q2FY26 | ₹115.6 Cr | +53% | yoy · Q2FY26 · vs Q2 FY25 |
| Export Share of Revenue | 40% | +na | point_in_time · Q2FY26 · during Q2FY26 |
| Domestic Revenue Growth | 15% | +na | yoy · Q2FY26 · vs Q2 FY25 |
| Order Book | ₹490 Cr | +na | point_in_time · as of Sep 30, 2025 · as of Sep 30, 2025 |
| Welded Revenue Share | 38.9% | +na | none · Q2FY26 · of Q2FY26 revenue |
| Seamless Revenue Share | 56.3% | +na | none · Q2FY26 · of Q2FY26 revenue |
| Others Revenue Share | 4.8% | +na | none · Q2FY26 · of Q2FY26 revenue |
| Seamless Revenue Growth | 25% | +na | yoy · Q2FY26 · vs Q2 FY25 |
| Welded Revenue Growth | 48% | +na | yoy · Q2FY26 · vs Q2 FY25 |
| Total Seamless Capacity | 16,200 MTPA | +na | point_in_time · as of Nov 2025 · after commissioning 1,800 MTPA in Nov 2025 |
What management committed to
- Revenue growth for FY26 will be approximately 25% year-on-year. — 25%, FY26
- Blended EBITDA margin for FY27 will be in the range of 16% to 18%. — 16% to 18%, FY27
- The INR 190 crore power sector order will be fully executed by June 2026. — Q1FY27
- The new fittings plant will commence operations in the last quarter of FY26. — Q4FY26
- Additional seamless pipe and tube capacities will be commissioned in the second half of FY26. — Q4FY26
- Export share of revenue will be more than 25-30% going forward. — more than 25-30%, going forward
- Peak revenue from the fittings plant will be more than 3x the investment of INR 60 crore, i.e., over INR 180 crore. — over INR 180 Cr
- Net debt will peak in FY27. — FY27
- Utilization of the newly commissioned seamless capacity will ramp up steadily in the coming months. — coming months
- 80% of the large power sector tenders will be opened in the next 3-4 months. — 80%, Q4FY26
How the narrative shifted
- Capex super-cycle driving stainless steel demand: India's capex cycle remains robust, with multi-year investment visibility across power, railways, and engineering, driving structural demand for stainless steel pipes.
- Shift from unorganized to organized sector: Regulatory oversight and quality norms are causing a gradual shift from unorganized players to organized, creating a structural opportunity for Venus.
- Export growth as a key engine: Exports reached an all-time high, driven by acceptance in global markets, despite geopolitical uncertainties; Europe and Middle East demand strong.
- Value-added product expansion for margin lift: New capacities in seamless, welded, and fittings will enable higher-value products, targeting 16-18% EBITDA margins by FY27.
- US tariff uncertainty as a headwind: US market shows declining orders due to tariff uncertainty, but the company passes tariff increases to customers.
- Power sector order pipeline as a major opportunity: Large tenders from BHEL and other thermal players are expected to materialize soon, with 80% of large tenders opening in the next 3-4 months.
- Entry barriers via approvals and certifications: Customer approvals in critical industries take years, providing a moat against new entrants and positioning Venus in a different league.
Operational commentary
- Commissioned 1,800 MTPA of stainless steel seamless pipe and tube capacity in November 2025, raising total seamless capacity to 16,200 MTPA.
- New capacities for fittings and additional seamless pipes/tubes remain on track for commissioning in H2 FY26.
- Order book remains healthy at ₹490 Cr, providing strong revenue visibility.
- Exports reached an all-time high, driven by strong demand from Europe and the Middle East, while US orders declined due to tariff uncertainty.
- Anti-dumping duties on stainless steel pipes from China remain in effect until December 2027, supporting domestic manufacturers.
- The company passes tariff increases on US orders to end customers.
- Customer approvals in critical industries act as high entry barriers, benefiting Venus as a trusted supplier.
- Welded pipe growth was driven by new customers in the Middle East and larger size pipes.
- Management expects a gradual ramp-up in utilization of new seamless capacity and a slower ramp for fittings due to the need for new approvals.
Analyst Q&A
Q. Update on the INR 190 Cr power sector order and confirmation of FY26 revenue growth guidance.
Around 15% of the order has been executed; the internal target is to complete it before June 2026. The 25% revenue growth guidance for FY26 is maintained.
Q. Expected EBITDA margin trajectory for FY27 given value-added product expansion.
Blended EBITDA margin should be higher than the current 16.3%, in the range of 16% to 18% for FY27, considering the ramp-up of new capacities and value-added products, though fittings will take time to contribute.
Q. Export mix outlook for H2 FY26 and US tariff impact.
Export share should not be at 40% but more than 25-30% going forward. US orders are declining due to uncertainty, but tariffs are passed on to end customers.
Q. Details on specific high-value alloys or grades being targeted for product complexity.
This is slightly confidential due to competition.
Q. Expected timeline for large power sector tenders from BHEL and other players.
80% of the large tenders are expected to open in the next 3-4 months; if not in H2, definitely by early April.
Research and educational content only. Not investment advice.