Hariom Pipe Q1 FY27 Results (NSE: HARIOMPIPE)
Signal: Revenue declined
The read
The key inflection is operational rather than earnings-based: Q1 revenue fell 6.9% YoY and EBITDA fell 13.1% to 51.26 Cr during the Perundurai shutdown, but operations restarted on July 13, 2026; the next two quarters must show whether lost capacity returns without renewed margin pressure.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹429.18 Cr | -6.9% | -15.4% |
| EBIT | ₹35.83 Cr | -19.7% | |
| Net profit | ₹16.62 Cr | -29.6% | |
| EPS | ₹5.36 | -29.7% | |
| EBIT margin | 11.9% |
P&L walk
Consolidated revenue declined to 42918.30 lakh, while EBITDA fell 13.1% to 51.26 Cr and PAT fell 29.6% to 1659.78 lakh, primarily reflecting the temporary Perundurai closure rather than a disclosed change in steel-product demand or pricing.
Segments
The company reports a single steel-products business segment; the consolidated PAT of 1659.78 lakh was 76.58 lakh below standalone PAT because the two subsidiaries reported combined net losses of 8.15 lakh.
Key positives
- Perundurai operations recommenced on July 13, 2026 after the TNPCB closure direction was suspended, creating a disclosed recovery opportunity after Q1 revenue fell 6.9% YoY to 42918.30 lakh.
- The subsidiary commissioned a 5 MW AC/6 MW DC solar project on July 8, 2026 and connected it to the MSEDCL grid, adding a new operating asset to the group.
- Raw material cost fell to 59.0% of revenue from 82.2% in the year-ago quarter, while gross margin was broadly stable at 20.9% versus 20.5% implied by the disclosed cost lines.
Key concerns
- Consolidated EBITDA declined 13.1% YoY to 51.26 Cr and PAT declined 29.6% to 1659.78 lakh, showing substantial earnings sensitivity to the Perundurai disruption.
- The 15 lakh promoter-group convertible warrants can convert into an equivalent number of equity shares by January 27, 2028; although no dilution was reflected at June 30, 2026, future share count may rise.
- Finance costs increased 7.9% YoY to 1342.02 lakh despite the revenue decline, keeping leverage and funding costs relevant to the recovery thesis.
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