Sambhv Steel Tubes Limited (SAMBHV) Q3 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to Sambhav Steel's Tube Ltd. Q3-F526 Earnings Conference Call, hosted by Monarch Net Worth Capital Ltd. As a reminder, all participant lines will be in the listen only more, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star, then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sahil Sanghi from Monarch Networks, Capital Limited. Thank you and over to you, sir.

Thank you, brother. Good evening, everyone, and welcome to Sambhav Street Tubes Limited's earnings call to discuss Q3 and 9-month SI26 performance. Before we begin, we would like to remind you that today's discussion may include certain forward-looking statements, which should be considered in the light of the risks and uncertainties outlined by the company. Joining us on the call today are Mr. Vikas Kumar Goyal, Managing Director and CEO, Miss Anu Gharg. Chief Financial Officer, Mr. Vikas Agarwal, Chief Strategy Officer, and Mr. Mayang Agarwal, AVP CEO of Office and Investor Relations. I now invite Mr. Vikas Goel to take us through the business outlook and key financial highlights, following which we will open the floor for questions. Thank you, and over to you, Vikas Ji.

Thank you, Sahil. Good evening, everyone. Thank you for joining us for some of the quarter three, nine-month financial area, 26 earning I hope you have had an opportunity to go through our financial disclosures available on the exchanges. I will walk you through the key strategic updates, operational progress, and the financial performance followed by the question and answer session. I am pleased to share that Summer has delivered its strongest ever nine-month performance with total sales volume, revenue, EBITDA, and PED growing by 34%, 70%, 73%. And one and 110 percent. operational and financial progress. Before delivering, delving into the performance details, I would like to highlight some key strategic updates. On the capacity expansion front, the company is developing a greenfield project at Kejda and Kothraal unit too. We are pleased to inform you that environmental clearance from MOEF Delhi has been received and the project execution has commenced and within just two months of breaking the ground, We have achieved significant progress. Under the brownfield expansion, GP capacity, galvanized capacity has been increased to 1,16,000 ton per annum. Additionally, we have progressed to doubling the stainless steel CR capacity from 58,000 ton per annum to 1,16,000 per annum, for which the city consent to establish has already been received. Also, I would like to mention that we have executed Thank you. Thank you. It's a quick roadmap. Thank you. I have Rs.589 crores and 51 crores, reflecting the robust growth of 60% and 34%. On the year-on-year basis, I would like also to highlight that financial cost decline significantly, driven by the repayment of long-term borrowings. In conclusion, Sambabh remains well-positioned to sustainable value-added growth, supported on ongoing capacity expansion, improving market penetration, and strong distributor and customer network that enhance product reach. Our continued focus on value-added products, operational efficiency, and brand building is strengthening our competitiveness and the resilience with a strategically located integrated plant, efficient captive power system, and expanding OEM and dealer relationship. The company is well-placed to benefit from the growing demand in India's steel pipes and tubes and stainless steel market. A healthy balance sheet, experienced leadership, strong stakeholder confidence, somehow continues to progress steadily towards its long-term growth objectives. Thank you very much.

We will now begin the question and answer session. Anyone who wishes to ask a question may please press star and 1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Hardik Gandhi from HPMG. Please go ahead.

Hello, sir. Congratulations on the good setup numbers. Hope I am audible.

Thank you. Yes, sir.

Yeah, so just I was following this trend in your company where quarter-on-quarter the EBITDA per ton is reducing, where we understood our value-added products were supposed to increase the EBITDA per ton. If we see on quarter 2 versus quarter 3, our EBITDA per ton fell from 6,100 to 5,200, and there's a significant pressure on our EBITDA margin. So can you just help us understand that?

Good morning, everyone, and welcome to the Q1, and welcome to the Q1, and welcome to the Q1, and welcome to the Q1, So, it was a little bit of a margin. Thank you. Thank you. Thank you. Good morning, everyone. Thank you. Good morning, everyone, and welcome to the call. Thank you, everyone, and welcome to the channel of YouTube. Good morning, everyone, and welcome to the call. The third, we have the capacity increase of the gas gas gas gas gas gas gas gas gas gas gas gas gas gas gas gas gas gas gas Thank you, everyone, and welcome to the call. Good morning, everyone, and welcome to the call. Good morning, everyone, and welcome to the call. Thank you.

Going forward basis, what should we expect of a healthy EBITDA margin per ton? Because we earlier spoke in the previous concourse, we spoke that We will be reaching a higher EBITDA per ton because of the value-added products by the end of the year, and you know, this is on the contrary, that it's going to be reduced. And what would be a healthy number per ton, and second thing, volume may be dropped, where the total production volume is 3,300,000, 34,000, 3,200,000. So, although we are doing a significant expansion, the capacity utilization should be increasing and volume should be increasing. So, a little contrary view is that you are seeing a little bit of a contrary view.

I will clear you first, that our sales volume is showing a little bit of a value added product, if you will see it in Q3. We'll see you now. Or in terms of product 2, or in terms of product 1 also. Good morning, everyone, and welcome to the call. Thank you. All together, we have our 5,800 rupees, which is our emitter burden for all of our products. If you think that Q4 is good, then we will achieve these 7,500 rupees in this year.

So indirectly, you are saying that the jump in the next Q4's EBITDA would be enough to raise the overall years per ton EBITDA. So approximately 9,000 per ton EBITDA should come if that is supposed to happen. Is that understandable?

No, a bit of correction on the understanding. First is overall 26 EBITDA per ton. We are expecting at around 7,000 rupees ton. And 7,500 per ton is expected for Q4 overall. So, currently we have achieved in Q3 in terms of number of EBITDA is 5,500 plus. And overall for financial year 2026, we will be achieving 7000 plus overall. And for Q4, we are expecting 7500 rupees per time. Q4 number.

Right. So just to understand, where is the confidence coming where we will be able to jump 1800 rupees EBITDA per time in just Q4? I know there have been price increases, but is the visibility there?

Just follow. The three problems that CEO, sir, have stated in... Q3 is actually is getting reversed in Q4. That is first, coil price has increased by approximately 10% from Q3 in Q4. We have already procuring our raw material at very low cost in Q3, which we are going to utilize in Q4. So that margin expansion will be there from carbon black. Steal side. Secondly, our GP production capacity is already being enhanced and commissioned. That benefit also we will be getting in Q4. Plus, stainless steel.

That's it from my end. I will join back in the queue for any more questions. Thank you.

Thank you, sir. Ladies and gentlemen, to ask questions, please press star and one now. Participants who wish to ask questions, may please press star and one at this time. The next question is from the line of Devish Lakhotia from EGI Asset Manager. Please go ahead.

Yeah. Hi, sir. Good afternoon. Congrats on the performance. A couple of questions. One, I think in your opening remark, you mentioned about some MOUs being signed. So could you just elaborate on that? And second, on the stainless steel pricing, as you highlighted, withdrawal of rebates on China. So is it applicable on the stainless as well? And what is the... Kind of improvement in sizing that you have already seen on the stainless side. And this would be more on the 200 series grade where we are predominantly kind of looking at this side.

The first question is that we have done the M.O.E.s. There are now 4 products that we have supplied. Co-branding in which we are selling the Stainless Steel price. This is like our big brand. We have been in Raipur, Gwalior, Sambalpur and Janshepur. Now we have 4 products in January. You will get a good number in the next quarter. 5,000 tons per month we are coil sale. Some of the brand can help you in the market. Thank you. The first phase is our target.

So, the West China, you know, they have already tightened the export regime for stainless steel specifically with effect from 1st January, 2026. They have done it purposefully to curve underpricing of stainless steel product export and illegal trade which is happening through Dubai, Indonesia and Vietnam Road. Because their domestic consumption for stainless steel has increased drastically, first. Secondly, the price of stainless steel across 200, 300, 400 series has been increased with effect from 29th January 2026 by 2,000 to 3,000 rupees depending on which we are talking about. So overall if you see the stainless steel market itself at least for the domestic manufacturer perspective in India seems to be very robust currently because somewhere China is tightening their export to India and secondly you know Indian stainless steel production itself It's not enough to meet the current demand of Indian consumers.

Sir, just one follow-up on the first question,

so these MOUs, how are the, how does the economics work between us and our partners, do we sacrifice anything on the margins term, or is it more just volume related?

We are just making the marketing aspect for their market, that we have the fabricators, the users, that we have marketing, holdings, boards. So, marketing expenditure per LV holder, we will have to increase our brand's sales, so it is necessary for us. So, this is our component, that we need to have marketing, fabricator meets regularly, so that our brand's sales and sales will be done. Good morning, everyone, and welcome to the call.

Got it. And Abhi, right now, what would be the average selling price on a per-turn basis for spikes for us? Both Q3 and current position.

For Q3, the HR-5 hybrid realisation is 46,100 around. And for the value added products, GP is to date 59,200. And SS-Coil 200 series is around 1,24,000. And 300 series is much more, that is around 1,80,000.

And similarly, what would be right now for these products?

The black pipe right now is Rs.52,000 per ton. And the carbonized product is Rs.56,000 per ton. And the stainless steel is Rs.126,000, I think.

Thanks a lot.

Ladies and gentlemen, to ask a question, please press star and one now. Participants who wish to ask questions, may please press star and one at this time. The next question is from the line of Vikram Sharma from Nivishaya. Please go ahead.

Hello. Uh, hi, Seth. Uh, First question is regarding, can you explain the capacity, new capacity commission during this quarter, and also new capacity coming on stream over the next few quarters, like we were doing the bottlenecking in stainless steel side and new plant side, so if you can explain about the overall capacity added and new capacity coming.

The green field has been told that we are going to be building a stainless steel in the first place. Thank you. So, the market survey, production, technology, tie-ups, we are working on it. So, we are working on it and we are working on it.

Yes, so we are expecting that capacity to be commissioned by Q4 2027. The brownfield expansion that we have currently undertaken is going live. For GP, it's already gone live. For standard steel, it is going live by March 26.

And last quarter, we have shared that we have started selling in 300 series. So, there is a lot of initial feedback from our market. In a quarter, we have 200 versus 300. In stainless steel size.

So, if you see in Q3, we have sold around 1200 to 1300 per ton of stainless steel of 300 series. We have got good feedback about it. We are in this particular quarter also, we are ramping up the production of 300 series. If you see currently, the mix is... This is 300 and 200 series, it's mostly 30-70 currently, but we try to achieve 50-50 mix in Q4.

So, average realization will increase to 1.4

lag, 1.5 lag in Q4 for this.

Good morning, everyone, and welcome to the call.

Okay. And one, sir, which is our plant, generally, we try in power that it's in-house. But there, we shared that you have 40-45 percent of your power dependence on the grid. So, we have some renewable or some try to reduce external power dependence.

Thank you. Our cost day-by-day and year-by-year, our state government focus has to be increased, so that the discom or distribution harms, the loss making usually, will be less. If we can see that, and our view is that since the carbon steel market of India, domestic market, Thank you. The future will be on cost competitive basis. Carbon steel market will operate. For that, we think that a 25-30 MW power plant will be required to compensate for 45% of our electricity requirement, which we are currently drawing from external grid. Thank you. It will be approximately 125 to 150 CR capex requirement and we can achieve upwards of around 50 crore rupees in terms of electricity bill from that particular power plant. We are going to approve it in the initial stage and we will acquire land acquisition. So, we will be self-sufficient in terms of power per solar plant and we are actively working on that side.

Question, last question, I have given a disclosure. Fraud allegation in our subsidiary company. There was something for our 11-12 crore investment. What do you think of clarifying?

Yes, we have a new project, like our project is under consideration. For future land banking, we have a transaction for which advance payment of 11.5 crore was given. During our due diligence process, we have found out that the land is already being mortgaged to a certain financial institution, which was not disclosed to us during the dealmaking process. Once we found out, we demanded for either refund or get an NOC from the existing lender. So, landowners nai eek particular time period pere NOC leke nai a paaya, to uske liye humko unho ne refund approximately out of 11.5 crore, humne ne 9 crore ka refund humko kar diya hai. Balance 2.5 crore ke liye hum log actively unko follow up kar raha for the refund. So, since as an intent, as a listed entity, we do not want to showcase ourselves as an entity which is procuring a mortgage land without having consent of the borrower. So, we have gone ahead to file a case against the seller of the land. But current status is we have immediately, you know, got the money of 9,000 rupees from the party and the balanced amount is under the refund process.

Okay, sir.

Thank you. Thank you, Vikram.

Thank you, sir. Ladies and gentlemen, to ask a question, please press star and one now. The next question is from the line of Miraj from Chem 9 LLP. Please go ahead.

Thank you for the opportunity, sir. So, sir, of course, the question which was my question, you have given it a little bit, but I would still like to just touch upon it once. Regarding the gross profit that we have seen, sir, the JP per ton, what we have seen, what we have seen, gross margins. So, gross margins, for example, this time, quarter and quarter and YOY both have declined. So, there is one reason to be that we are getting realizations. But, sir, ERW Pipes' prices are also getting hit, and the cost of iron ore is not at all. So, if you can just explain, why do we have GPQ, gross profit margins, why did we come down this quarter?

All connected with the pipes and tubes.

Not galvanized pipes, I am saying gross profit, not galvanized pipes, gross profit. Gross margin, sorry, gross margin, yes.

Also, because of increase in raw material cost, which CEO sir has explained earlier in the call that raw material prices For HR coil has decreased, but the sale price has also been decreased, but raw material written iron ore and sponge has not been decreased in comparison with the HR sizes. And the benefit of decreased iron ore cost and sponge iron cost will showcase in Q4.

So, ma'am, if I'm not wrong, you're trying to say inventory loss was over in Q3?

No, inventory loss was over.

Okay. Okay. What?

Iron ore is a commodity product. Like my November, it started to go to December end. It will get more benefits. Good morning, everyone, and welcome to the call. So, this will always come to us that the raw material price will go up or increase, and the impact will always come in a quarter.

Understood. So, sir, if I'm not wrong, NMDC has recently revised their prices somewhere in Jan. So, what was the change over there in pricing in iron ore?

150 rupees per time.

They've increased by 150 rupees.

Increased, yes.

Okay, but our increase in ERW pipe prices has been much more than that, right? I think that you have explained it on the call, 10%, so almost 4-5,000 rupees, just how many increases take it. Okay, I understood. And secondly, sir, you were mentioning future products. I think you were just mentioning that, you know, you are looking at, did you mention seamless types or stainless types?

Seamless, seamless, stainless is seamless tubes.

Seamless tubes, okay. Seamless, seamless, seamless tubes, okay. Okay, that is something that you said. So, if you can, sir, just touch upon, what is the client and what is the opportunity that we are seeing? Can you just give us some highlights over here as well?

Sir, it's all about our research. It's all about our next country. We'll give you some news.

So, just to elaborate, Miraj, if you look at our trajectory as a growth, we achieved a scale and profitability carbon steel. Then, we achieved a small quantity with stainless steel and market accessibility. We just increased our capacity by 6-fold for the stainless steel market. So, in that process, we think that Going forward, the growth will only come from value-added and special stainless steel products where a company can achieve a good amount of profit or a higher margin. So, if I see that point of view, We have a logical extension after our two successful implementations and business models for carbon and stainless steel. A high value product and high technological oriented product is a logical extension. So that is why seamless as a market. It comes into play. If you look at the budget, then the government manufacturing sector has a lot of investment opportunities created and a lot of incentives and a lot of package has been given. And everything, whenever this kind of budget comes, the steel market supports back. And the best part is seamlessly something which is the use of... That product in the defense, in the marine, in the nuclear power, in, you know, wherever you can see, the usage is going to grow exponentially. So, we think seamless as a product is natural extension to what we are doing currently. That is why we are planning, we are studying the... We are studying the market, studying the competitors, and studying the technology. And it may happen that we come up with a technological partner in that, and we execute this project in a joint venture manner. Secondly, Good morning, everyone, and welcome to the call.

Understood. That's great to hear that we've received the PLI approval. Sir, it's my quantum app. Can you just clarify or you'll still invoke that how much you're going to receive?

The entire MOU or the draft that we supposed to be executed with the government of India, that will be expected by the second week of February. Upon that, MOU in our hand, we can, you know, give you some number on that.

Understood, understood. And answer on seamless part, just one more thing over here. Seamless, the raw material requires billets, right? Then how are we going to make billets over there, even if we're doing stainless seamless?

We will be able to perform the rounds, then we will be able to work on the integration, but we will be able to do the time-baring. First phase, we will be able to make rounds, then we will be able to make rounds.

Understood. Okay, okay. I'll get back in the queue. Thank you, and all the best for the future, sir.

Thank you, sir. Thank you, sir. The next question is from the line of Aryan Bhatia from Invade Research. Please go ahead.

Thanks, sir. My question is regarding a stainless steel capability. So, I just wanted to know, like, in the first phase of expansion, we were bringing about something 3,60,000 times. That will be in the first phase, and we are doing a brownfield expansion of from 558,000 to 1 lakh. So, these are separate capacities. Am I right? Yes, sir. So, can it be the total capacity which will come by FY27? What's changed, please?

It will be approximately 4,700,000 ton of annual capacity.

Oh, like 70,000. Okay, great. And my second question is, like, we are, you know, expanding our stainless steel. So, if I look at some players, so, when they do stainless steel, they have raw materials for reworking capital, they will expand it due to the higher inventory days. So, do you expect that when we will also expand our stainless steel capacity by 6x? So, are working capital cycles, is going to remain the same or will have some, you know, expansion for working capital business? So, what could be the expected increase in working capital days you have calculated or are expecting from our current?

On the higher side, 20 days is more conservative or very conservative. I would say 10 to 15 days at max, I think we will have initial days of, you know, increment in working capital days. Once our product gets accepted into the market, I think that will be stable at around 10 days.

Okay. My last question is like in the next year, FY20, the major growth in the week coming from our stainless steel, brown steel expansion, because all our capabilities are going to be utilized in this year only. Total capacity fee for FI27 will be 3,60 for ERW, BI and GP will be 1,12 and stainless steel will be also 1,00.

Thank you.

Thank you, sir. The next question is from the line of Abhinav Shetty from Elios Financial Services. Please go ahead.

Hello, sir. Am I audible?

Yes, sir.

Yes. Yes, sir, we know.

Okay, sir. Congratulations on a good set of numbers. Sir, I had a few questions. Sir, first please, if you could give me the breakup of Abidda pattern for the different products that we sold this quarter.

We are libertized like 13,000 and the black. Good morning, everyone, and welcome to the call, everyone, and welcome to the call, everyone, Good morning, everyone.

In such case, 5,000, like 5,200, we have increased the production and the sales volume.

Yes, if we talk about stainless steel, we have had 11,400, which I have had 17,000 per ton. In my house, I have had 42,000, which I have had 5,600 per ton. Thank you. 1,600 tons at the rate of 6200. We will see the number. We will increase the price.

Oh, dear. I have one more question. Many bigger players are shifting towards this DFT technology for larger diameter pipe. So, do you have any plans to adopt DFT and enter the larger diameter pipe segment? Now you are in small or medium tubes.

Yes, definitely our plan is. We are building on stainless steel. Good morning, everyone, and welcome to the call. So this is our planning, saying that we have not served on the market. So we are planning, in our planning stage, we have installed a 5.050-2.050. But it's a planning stage, but it's also a planning stage. Good morning, everyone, and welcome to the call. Thank you.

Okay, so this is next year or next year, FY27 or FY28, can it come soon?

We will announce soon, but it is still in a planning stage.

You know, just to highlight, you know, this is also in terms of a very value added, it will add a lot of value to my purchasing power of coil. Currently, if I look at 1 lakh ton of coil I am purchasing from outside market. Upon DFT, I will have the requirement of let's say around 2 lakh to 2 lakh 50,000 ton of, 3 lakh ton of let's say coil requirement annually. And with that kind of procurement, I will have a cost advantage or bargaining power from the coil manufacturer. So overall, if I have a coil procurement, I will add a lot of value, plus my EBITDA also increases. Secondly, if we look at the BFT market, this is an approval-based high-margin business. Thank you. And when we complete the product of SKU, we complete the product of SKU at 7 inches, 14 inches to the market, so a party that is giving supply to a particular brand is easy to give it to a place for a particular brand and it is easy to get off-taking from a plant and it is easy to get off-taking from a plant and it is easy to get every product from one place. So your velocity and sales are also increasing.

Sir, and this call, we have to make a call. So, we have to make a call.

Thank you, everyone, and welcome to the call. Thank you very much, everyone, and welcome to the call. 470, right? Thank you, everyone, and welcome to the call.

Next question, please press star and 1 now. The next question is from the line of Ruchita from TJW Investment. Please go ahead.

Hello, sir. Good morning. Good afternoon.

Good afternoon.

It's just EBITDA per ton that we've just mentioned. So, accordingly, what I've got in 3 galvanized, we've made around 4,000 per ton. Is that right?

Can you repeat the question, please?

Sir, on the pre-galvanized oil empire, this segment, our EBITDA per ton for the quarter comes to around 4,000 per ton. Is that right? Like, whatever we talk to all from outside and in-house, plus new capacity, what do you say?

Yes, the number is correct.

It's a number set, right? But on a regular basis, like, you know, if you don't call those things, how can it be pre-galvanized just to understand?

So, we have to say it on a two-factor basis.

First is, what will be my EBITDA on a regular basis from my own coil, and what will be EBITDA from the coil that I procure from the market. Regular market-wise, Q3 is an exception in terms of EBITDA number for us. So, approximately 8,000 to approximately 8,000 will be our EBITDA margin from GP5. Which will be produced from our internal coil manufacturing and from external coil which we are procuring from NMDC or other players. If I make a pipe, my EBITDA margin will be approximately 4,000 plus.

Okay, and current, what is the contribution? Is it 50-50 and how do we see that going ahead?

40% from in-house coil?

So currently, galvanization is done approximately 40% of the sale from internal coil and, you know, 60% from the outside coil.

Okay, and going forward, do we want to maintain that ratio? We will slightly go towards in-house.

It will be maintained at 60-40 level only.

Okay, okay, okay. So around 6,000, I think in September we had done around 7,000 EBITDA per ton. So that was kind of a one-off. So we can see around 6,000 EBITDA per ton in pre-galvanized production.

5,000 to 6,000 in between.

Okay, 6,000. And on the ERW, sir, ERW currently is 4,500 because obviously the prices were down. But earlier, you know, when we used to look at your company, when it was only ERW, that time it was around 7,000 for Tanda Epicta, which has now gone down to 5,000, 4,500, going down only. So where do we expect that on a regular basis?

Correct. So, the one reason behind the Ebitda button getting down, as we already said, it was the HR oil prices, but as you mentioned earlier, when we used to manufacture just HR pipes, Then the EBITDA used to be much higher. That was because, see, we started GP, we started slabs also. So, the quantum of outside purchase coil got increased because of the GP production that we have started. So, in my ERW black pipe segment, if you see, currently the ratio is around 75-25%. 75% I manufacture from my in-house coil and 25% currently we are getting to outside coil. So, a blended offset, as you rightly mentioned in Q3, it was around 4500. But on a full year basis, we are expecting that this should be about 6200 to 5500 rupees on a blended level.

Okay, so normalize is 6200 to 6500.

Yeah, on a blended level, and if you consider separate EBITDA button for these two segments, so from in-house pipe, you can consider around 7500 rupees, and from outside coil, you can consider around 2200 to 2500 rupees, on a normal level.

Okay, okay, okay, and CR coils ke le 15,000 is what we are looking at, right?

Yes. SSCR. Yes.

And for HR would be lower, around 9,000-10,000.

So HR calls we don't sell in the market.

But in FY28, we would, right? Because that capacity would be higher than our CR coil.

So, you are talking about the HREP coil of stainless steel. So, yes, definitely. So, we have this 3.5 lakh ton of Greenfield Phase 1 project go live. We plan to sell around 50% of our capacity in HREP form and 50% of our capacity in a cold roll form.

Right, right, right.

In HREP, you can expect the EBITDA margin of around 10,000, and in CR, bright and red coil, you can expect the margin of around 15,000 plus.

And just to add to your last question, wherein we were discussing the EBITDA pattern on the black pipe segment. So, as I mentioned that from the outside coil around 2,000 to 2,500 rupees, but once and if we set up DFT, then those margins will also increase, and it will go up to around 3,500 to 4,000 rupees also, in the higher diameter segment.

Okay, okay. And you were saying 350,000 the capacity is going to come. So HR call is going to be from 60,000. It will go to around 410,000.

4,70,000 actually. It will be 4,70,000 because sterile steel is fully integrated.

HR coil currently 60,000 right? Okay, which will become unless 16,000.

16,000.

So that will also become better.

So, currently we are having 58,000 ton capacity, which we are increasing, which will be commissioned in March 2026 to 1,16,000 ton. And on top of 1,16,000 ton of SR, sorry, 1,16,000 ton of SS coil, we are adding 3,50,000 ton of stainless steel coil. So, in total, it will be approximately 4,17,000 ton of installed capacity of stainless steel coil manufacturing.

Okay, 3,40000 can be your CR coil production, right?

Not CR, man. It is HR plus CR both, because in phase 1 of greenfield expansion, we will sell approximately 50% in HR form and approximately 50% of bar coil in CR form.

Right, right. But in terms of capacity, I'm asking. Right now, it will be...

In capacity, it will be like 20,000 ton. To fill up 40,000 coil. Okay, so in other way, for HR AP coil will be like 20,000 approximately. And rest 2 lakh, 2 lakh 20,000 will be CR coin.

Exactly, that was my question. So 3 lakh 20,000 will be CR coin.

This is from the perspective of selling.

Right, right, right, right. 3 lakh 20,000. Okay. Understood. Understood. Yeah. Thank you so much. Thank you.

Thank you, ma'am. The next question is from the line of Chandrish Malpani from Nivishya Investment Advisory. Please go ahead.

Hello.

Hello.

Sir, thank you for the opportunity. Sir, the first question is that you have told us that on Galvanized side, we have brownfield expansion, so about 15 days of plant maintenance and shutdown. Similarly, we have stainless steel side expansion in Q4. So, you can see the current volumes that we are doing.

No, no. Actually, in my CR complex, I had a new commission that was just in its path, and in that way, the pickling line also had to exchange the width of them, because I had a wider width of CR-cold rolling mill. So that's why the pickling line is switched off and the maintenance is going on. Thank you. Good morning, everyone, and welcome to the call.

Okay, sir. And, sir, in this line, the stainless steel cream-filled expansion is so major. Sir, sir, there is a ramp-up, and what do you think the government has been delaying the duty part in stainless steel coil for a long time, and now when the window opened, So, when we have ramp up, basically, our 60,000 metric ton capacity, we have a good ramp up in one year, but we want to do a major KPEX, we want to do a 6x capacity here. So, what risks are the ramp up? How will the coils go to the market when we ramp up the sales?

Thank you. Oh, I'm saying that the two countries, the European bloc and the Chinese, they have technological advantage, scale advantage, and their own local government support. Similarly, if you will see India in India too, So, we have told us that in PLI scheme we are eligible, the entire expansion that we are doing is now eligible under PLI scheme, so a government support indirect way to counter any import is already being there. Secondly, scale advantage was My brownfield goes live of 1,600,000 ton stainless steel coil. Apart from that, if my stainless steel, the greenfield, goes live, then I will have that scale advantage vis-à-vis any other international player. And predominantly, my... Good morning, everyone, and welcome to the call. Secondly, when we start the Greenfield project, we have time for 1-1.5 years, let's say, so we are already on the field and our sales team and marketing team is being hired there on job to create a market for that additional capacity that we are coming up with. So the time in Q4 when I will be there ready for production, so my market will already be created.

Thank you. Good morning, everyone, and welcome to the call.

Got it, sir. And, sir, one last question on the debt position, kya rahi hai, as of this, on your end.

So, the total debt of Azon, 31st December, was 210 crore, after which 40 crore is drum loan, and 170 crore is working capital loan.

Okay, got it. Thank you so much and all the best.

Thank you, sir. The next question is from the line of Pushpenler, Jindal, an individual investor. Please go ahead.

Thanks for the opportunity, sir. This is our guidance for Q4 and FY26 because we are already like two quarters. Even if we do 7,500 or 6,800 blended, which is in quarter 1 to quarter 3, So that is already sold at that price, right? So what is the guidance that we are looking for this year and maybe next year after all of your expansions? At least the expansion plan for this year. So that means your volume will be very high in quarter four. Is there any guidance for quarter four?

Volume, it may be approximately one lakh. Blended.

That's a blended volume, right? So I won't go for yours.

Thank you, sir.

Because, you know, we just were putting up some numbers together for the App Store 26, but I think that's actually lacking by quite a lot of difference. So we're trying to model the business with the guidance that you've been giving us for the last two quarters. Thank you, sir. Thank you. All the best. Thank you. Thank you, sir.

The next question is from the line of Hardik Gandhi from HPMG. Please go ahead.

Hi, sir. Thank you for taking the question again. Just wanted to know, so right now our term loan is 40 crores, right? So how are we funding the new CAPEX completely? Because we just reduced our term loan debt in the last quarter, I think.

So, if you see, if we have financial closure-wise, that phase 1 is already being planned and that financial closure is in our hands. If we talk about project cost-wise, 930 to 940 crore is approximately the cost that we are going to incur for phase 1. Out of which 250 crore as on December is already being incurred. So, balance approximately 700 crore capex to be done in next 12 months. Out of which we are looking at raising 600 and 650 crore rupees from the long term debt and balance will be from the internal accrual. So, our objective to the overall project was 650 crore will be from the external debt and 300 crore rupees approximately will be from our internal accrual.

Right, and certain timelines are up now. We are expecting commercialization by Q4, right? On Q4 next year, and the numbers should start reflecting in Q1, F528.

Yes, definitely.

Right, and then just to understand more on our brand awareness and marketing side, what are the steps being taken overall? Are we expanding into other geographies? What is the strategy on that front?

Thank you. We are doing a deal with our studio distributor, we are doing a deal with tea, we are doing events that we can educate our customers and improve our demand. In the marketing, we are not focused on any ad or brand advisor, and still and still, we are marketing in India. Stillness, stillness, stillness, we will be marketing at the ground level. Thank you. Thank you. Good morning, everyone, and welcome to the call. Thank you.

The government mentioned Northeast and North is going to be their key focus for development, right? So maybe any proactive steps to expand there. And second thing is... Second thing is where, to understand more on the price differential between your product and the topmost player, like maybe APL Apollo or someone who has a bigger brand name, what is the cost differential just to understand more of how much we can grow.

Thank you. Yes, but similarly, the carbon steel pipes, the top brand, we have 2-3% or maximum 4% of the price difference. But that is our case, because we don't have excuses. Today, we are dealing with 7 inches in the pipe, and we have achieved this successfully in the market. And if we look at the competition, the price is good. But now we will see that the price is our...

And just the last question from my end, going forward, when you mention there will be your planning to do something on the seamless pipe side, maybe a JV or something like that. So, is it already included in the planning of stage 2 and 3? As well as to understand more from you, other seamless companies, yes, Jindal saw, then we... And then Maharashtra Seamless, and these are the two-three players. They are kind of struggling with their top line and bottom line. So why are we foring into that? And what is keeping us confident that there will be significant demand?

We are going on the Stillness Till Seamless, not the Carbon Still Seamless, first of all. And stillness till seamless, I mean, there is no demand.

The first question is if we are doing capex, apart from what capex we have already announced, it is a separate capex that will be announced. Secondly, we are studying seamless product, market and technology. As you mentioned, Maharashtra Seamless and Jindal-Saw, I think they are in a carbon seamless market, not in a stainless seamless market. Stainless seamless market is still good in a growth perspective, a high-margin product is also a high-margin product, and a lot of SKUs are not made in India, so if you look at that, the seamless seamless market is also imported, so we are targeting that gap, currently.

Developing import substitution for the higher diameter.

This was all the strategies that we are adopting, but in a way, you have answered mine. You answered me, actually.

Okay. Understood, sir. Thank you. That's it from my end. All the best, sir.

Thank you. Thank you, sir. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to management for closing comments.

We trust that we have addressed all your queries during the session. However, if there are any remaining questions, please feel free to reach out our investor relationship team at Go India Advisor. Once again, we extended our gratitude to all the participants for joining us today. Thank you.

Thank you, sir. On behalf of Borat Network Capital Limited, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.

Thank you, sir.