Smallcap stock jumps 4% after company to invest ₹500 Mil to double its production capacity

Synopsis: Sambhv Steel Tubes Ltd reports its expansion plans outfitting production capacity to 1,16,000 MT per annum with investment of Rs. 500million.

The shares of this company engaged in manufacturing of finished products, including ERW black pipes and tubes (hollow section) and Galvanized iron (GI) pipes, using intermediate products such as sponge iron, blooms/slabs, and hot rolled (HR) coil are in focus after their expansion of Kuthrel Unit.

With the market capitalization of Rs. 2,778.75, Sambhv Steel Tubes Ltd’s shares on Tuesday made a day high of Rs. 95.70 per share, up by 4.1 percent from its previous day’s close price of Rs. 91.90 per share. The share has given a negative return of 2.31 percent over the last 6 months.

What’s the News

The company Board of directors in its meeting on December 8, 2025 has approved the proposed plan for the expansion plan for manufacturing of Stainless Steel Cold Rolled Coils & Pre-Galvanized (GP) Coils. The plan is to expand Cold Rolling Mill (CRM) with Bright Annealing (BA) Line and Continuous Galvanizing Line (CGL), Situated At Village Kuthrel.

The Capacity expansion of Kuthrel Unit is expected to be completed by Q4 FY26, the existing capacity of CRM & BA (58,000 MTPA with 86 percent utilisation) will be expanded to 1,16,000 MTPA , and that of CGL (58,000 MTPA with 100 percent utilisation) will also be expanded to 1,16,000 MTPA.

The investment of Rs. 500million(Rs. 50 crore approx) for the expansion will be funded by company’s Internal accruals to meet the captive requirement as well as growing market demand of our products

About the company

Sambhv Steel Tubes Ltd manufactures finished products, including ERW black pipes and tubes (hollow section) and Galvanized iron (GI) pipes, using intermediate products such as sponge iron, blooms/slabs, and hot rolled (HR) coil.

Key operational metrics involved the Sale volume of 191,474 MTPA in H1 FY26 for the firm: Intermediate Products contributed 22,195 MTPA, Structural Pipes & Tubes contributed 108,082 MTPA, Stainless Steel contributed 21,006 MTPA, and Pre-Galvanized Coils & Pipes contributed 40,191 MTPA.

Financial highlights, the revenue from operations grew by 83 percent to Rs.580 crore in Q2 FY26 from Rs. 316 crore in Q2 FY25. EBDIT grew by 168 percent to Rs.60.3 crore in Q2 FY26 from Rs. 22.5 crore in Q2 FY25. Accompanied by growth in Net profit by 446 percent YoY to Rs.30 crore in Q2 FY26 and EPS growth of 343 percent YoY to Rs. 1.02 per share.

Written by Gourav Pratap Singh

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