Vibhor Steel Tubes Reports 27% Surge in Operating Income as Demand Drives Sales Growth

Vibhor Steel Tubes Reports 27% Surge in Operating Income as Demand Drives Sales Growth​

Haryana based steel tubes manufacturer, Vibhor Steel Tubes Ltd (VSTL), reported a significant increase in operating revenue for the quarter ended June 30, 2026. The company's sales growth is attributed to the increasing demand and diversification into high value-added products following the commencement of operations at its Odisha plant.

On a standalone basis, Vibhor Steel Tubes registered an operating income rise of 27.16 percent at Rs 293.69 crore for the first quarter of FY2026-27. This is compared to the operating income of Rs 230.96 crore in the same period last year.

Despite the strong growth in top line and operational profitability, the company's net profit on a standalone basis decreased by 38.54 percent. Net profit stood at Rs 1.93 crore during the quarter under review, down from Rs 3.14 crore recorded in the previous year. On the positive side, EBITDA saw an increase of 20.57 percent, reaching Rs 12.37 crore against Rs 10.26 crore in Q1FY26.

Operational Expansion and Diversification​

The revenue surge is linked to increased sales generated from value-added products manufactured at the recently operationalised plant in Odisha. The greenfield facility commenced supplying Electric Resistance Welded (ERW) and Galvanized (GI) Pipes, which was started since July 2025. This plant, which entailed a total investment of Rs 119.83 crore, has a capacity of 156,000 MTPA and offers several value-added steel products including crash barriers, Power Transmission Line Towers, high mast lighting poles, octagonal poles, and monopoles.

In addition to the plant expansion, the company recently incorporated Viyom Steel Infra Pvt Ltd, a wholly owned subsidiary focused on manufacturing various high quality steel products such as transmission towers, crash barriers, and monopoles to cater to the infrastructure sector's growing needs.

Business Landscape and Ratings​

VSTL manufactures a range of steel products including electric resistance welded pipes, hot-dipped galvanized pipes, hollow section pipes, and primer painted pipes. The company also produces crash barriers, Power Transmission Line Towers, high mast lighting poles, octagonal poles, and monopoles.

A substantial portion of the company's business comes from its contract manufacturing arrangement with Jindal Pipes to manufacture and supply finished goods under the "Jindal Star" brand name, which currently accounts for over 80 percent of VSTL's total turnover.

Crisil Ratings recently assigned 'BBB+/Stable' long term rating and 'Crisil A2' short-term rating to its bank loan facilities aggregating up to Rs 370 crore. The rating reflects the company's established market position in the steel tubes and pipes segment, consistent operational performance, and prudent financial management.

Financial highlights for Vibhor Steel Tubes Limited are summarized below:

VSTL Stock Price Movement​

As of 10:15 AM, shares of Vibhor Steel Tubes Limited are slipping by 0.64% in live trading, currently valued at ₹106.01. The stock is seeing a traded volume of 2,998 shares amid an intraday range that includes a low of ₹105.25.