Sambhv Steel Q1 FY27 Results (NSE: SAMBHV)

3 Aug 2026 · Analysis by Alpha Inflection

Signal: Growth decelerated

The read

The quarter continued the recent revenue expansion, with consolidated revenue up 31.07% YoY to ₹7,321.73 million, but the margin trajectory is less clean: gross margin contracted 640bps as material cost reached 72.29% of revenue, while EBITDA margin held at 13.7% after 13% in Q1FY26 and Q4FY26. PAT growth of 69.25% was aided by finance costs falling 34.72%, but EPS growth of 38.13% lagged because of the enlarged equity base.

P&L walk

Consolidated revenue increased to ₹7,321.73 million, +31.07% YoY and +6.84% QoQ, but raw material cost rose to 72.29% of revenue from 65.87% YoY, compressing gross margin by 640bps; EBITDA reached ₹999.6 million and margin was 13.7%, while PAT rose 69.25% to ₹566.12 million, helped by lower finance costs and a favourable operating base.

Key positives

• Consolidated revenue reached ₹7,321.73 million, up 31.07% YoY and 6.84% QoQ, extending the company's high-growth trajectory.
• EBITDA rose to ₹999.6 million and EBITDA margin reached 13.7%, with employee benefits and other expenses growing 24.03% YoY versus revenue growth of 31.07%.
• Finance costs declined 34.72% YoY to ₹107.21 million, supporting PAT growth to ₹566.12 million, up 69.25% YoY.
• The Board approved an 8.0MW captive behind-the-meter solar project at an estimated investment of up to ₹250 million, intended to optimise manufacturing power costs.

Key concerns

• Gross margin compressed 640bps YoY to 27.71% as materials consumed increased to 72.29% of revenue from 65.87%; the filing does not establish pricing pass-through or the underlying input driver.
• EPS rose 38.13% YoY to ₹1.92, materially below PAT growth of 69.25%, as paid-up equity capital increased to ₹2,946.71 million from ₹2,410.02 million.

View original filing

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