Vibhor Steel Tubes expects significant improvement in profitability in ‘25-‘26

Haryana-based high-quality steel tubes and pipes maker, Vibhor Steel Tubes Ltd (VSTL), registered a standalone net profit of Rs 4.44 crore for the fourth quarter ended March 31, 2025, as compared with Rs 4.89 crore same period last year. On a sequential basis, net profit increased by 28.86 per cent from Rs 3.43 crore during the third quarter ended December 31, 2024.

Operating income on a standalone basis stood at Rs 288.3 crore for the quarter under review, as against Rs 291.20 crore last year. Sequentially, operating income increased by 16.6 per cent from Rs 247.25 crore in Q3FY25.

The company manufactures steel products such as electric resistance welded pipes, hot-dipped galvanized pipes, hollow section pipes, primer painted pipes and SS pipes among others. VSTL, which has a contract manufacturing agreement with Jindal Pipes to manufacture and supply finished goods under the brand name Jindal Star, currently sees over 80 per cent of its total turnover coming from this one segment.

EBITDA stood at Rs 12.16 crore and Earnings per share was Rs 2.34, during the quarter as compared with Rs 2.58 during Q4FY24.

For the year ended March 31, 2025, the company’s net profit on standalone basis stood at Rs 11.77 crore as against Rs 17.72 crore last year. Operating income was at Rs 996.38 crore, as compared with Rs 1,072.71 crore last year.

Commenting on the company’s performance, Vijay Kaushik, Chairman and Executive Director, Vibhor Steel Tubes, said, “India’s steel consumption has bucked global trends and has been witnessing a robust momentum backed by the government’s steady emphasis on infrastructure development. We have been witnessing a marked improvement in our topline on a sequential basis. We expect the growth momentum to pick up in the coming quarters supported by a good demand from sectors including infrastructure, housing and automobile. We expect the bottomline to improve further on the back of the volume growth and the launch of several products in the high margin segment.”

“The government had recently revealed that the second round of PLI scheme for specialty steel has attracted investment commitments to the tune of Rs 17,000 crore. At Vibhor, we have been continuously diversifying our product basket by rolling out several value-added offerings such as crash barriers and monopoles. The foray into new product segment and increasing share of exports is likely to give a significant boost to our revenues in the coming quarters,” Kaushik added.