Steel stock jumps after receiving order worth ₹217 Cr for seamless pipes

Synopsis:
The shares of this small-cap industry products company were in the news today after it received an order worth Rs 217 crore for the supply of seamless pipes from ONGC Ltd.

The shares of this company, which manufactures seamless pipes & tubes and ERW pipes and is also in the business of renewable power generation and rig operations, had its shares in the spotlight today as the company bagged an order for the supply of seamless pipes in the oil & gas sector.

With a market cap of Rs 7,903 crore, the shares of Maharashtra Seamless Ltd gained 1.77% in today’s trading session and reached a high at Rs 599.70, when compared to its previous day’s closing price of Rs 589.25. The shares have given a return of 274% in the last 5 years and are trading at a PE of 10, whereas their industry PE is 21.4.

About the order

Maharashtra Seamless has bagged a major Rs 217 crore order from ONGC for supplying seamless pipes, a core requirement in oil and gas exploration. This win reinforces the company’s position as a reliable and high-quality supplier to one of India’s most important energy players. The order will be executed through gradual dispatches over the coming quarters, giving the company steady business visibility and smoother production planning. 

For a product as specialised and capital-intensive as seamless pipes, this kind of staggered execution helps maintain stable operations and consistent revenue. Overall, this contract adds meaningful strength to Maharashtra Seamless’s order book and supports its growth momentum in India’s expanding oil and gas sector.

Financials and others

The revenue from operations is at Rs 1,159 crore in Q2 FY26 versus Rs 1,292 crore in Q2 FY25, which is a fall of about 10 per cent YoY. Similarly, the net profit has also fallen by about 43% when we compare the Q2 FY25 profit of Rs 220 crore with the Q2 FY26 profit of Rs 125 crore.

Maharashtra Seamless has a solid Rs 1,378 crore order book, giving it clear revenue visibility for the coming quarters. About Rs 376 crore comes from ONGC and OIL, with more drill pipe orders still expected, while the remaining Rs 1,002 crore comes from a diverse mix of other customers, including a notable Rs 125 crore cylinder pipe order. With Maharashtra, Telangana, and the ERW division all contributing, the order book is well-balanced. The company also locks in raw material costs upfront, helping protect margins despite price fluctuations. Overall, it’s a strong, steady pipeline that supports confidence in the company’s near-term performance.

Maharashtra Seamless Limited has built relationships with some of India’s most respected names, and this speaks volumes about the trust its products command. In the oil and gas sector, giants like ONGC, OIL, IOCL, BPCL, Cairn, GAIL, and Reliance rely on the company for critical pipe requirements. On the infrastructure side, partnerships with organisations such as Adani, BHEL, NTPC, L&T, Delhi Metro, GMR, and Thermax show how widely its products are used in major national projects. This mix of marquee clients across two essential sectors gives the company a strong, steady foundation and highlights the reliability and reputation it has built over the years. 

Written by Leon Mendonca

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