Sambhv Steel Tubes approves ₹148 crore stainless pipe plant in Chhattisgarh

Guidance
Steel pipes and tubes

Blacklitt Research29 October 20263 min read

Metal pipes and tubes arranged on shelves. — Photo by Zoshua Colah on Unsplash (Unsplash License). Illustrative image.

Sambhv Steel Tubes (NSE: SAMBHV) has approved a greenfield plant in Chhattisgarh for stainless steel seamless pipes and tubes, with an estimated investment of ₹148.00 crore, it said in a filing on 29 Oct 2026. The plant will be set up through its wholly owned subsidiary, Sambhv Tubes Limited, with an initial capacity of 14,400 MTPA and completion expected by March 2028. The same board meeting approved the results for the quarter ended 30 Sep 2026.

Key highlights

Estimated investment: ₹148.00 crore
Proposed initial capacity: 14,400 MTPA
Debt funding: ₹100.00 crore, balance from internal accruals
Completion expected by March 2028
Standalone revenue for the quarter: ₹835.99 crore

The project in numbers

Item	Detail
Investing company	Sambhv Tubes Limited, formerly Sambhv Tubes Private Limited, a wholly owned subsidiary
Location	State of Chhattisgarh
Product	Stainless Steel Seamless Pipes and Tubes
Existing capacity	Nil
Proposed initial capacity	14,400 MTPA
Estimated investment	₹148.00 crore
Mode of finance	₹100.00 crore through debt and the balance through internal accruals
Expected completion	March 2028

A greenfield stainless steel line in Chhattisgarh

The board approved on 29 Oct 2026 the setting up of a greenfield facility for stainless steel seamless pipes and tubes through Sambhv Tubes Limited, a wholly owned subsidiary. Annexure A gives existing capacity as Nil and the proposed additional capacity as 14,400 MTPA.

The company says the project “aims to strengthen the Company's presence in the value-added steel products segment” and meet growing domestic and export demand. Annexure A also cites import substitution potential and long-term business scalability.

Funding and timeline

The estimated investment is ₹148.00 crore. The company plans to fund ₹100.00 crore through debt and the balance through internal accruals. The project is expected to be completed by March 2028.

Results for the quarter ended 30 Sep 2026

Standalone revenue from operations was ₹835.99 crore for the quarter ended 30 Sep 2026, against ₹580.17 crore a year earlier, a rise of 44.1%. Standalone profit for the quarter was ₹61.29 crore, against ₹29.96 crore.

Consolidated profit for the quarter was ₹60.95 crore, against ₹30.60 crore in the same quarter of the previous year, a rise of 99.2%. The statutory auditors' review reports say nothing has come to their attention that causes them to believe the results contain a material misstatement.

What the project means for Sambhv Steel Tubes shareholders

The company is adding a plant of 14,400 MTPA through a subsidiary, and the cost is put at ₹148.00 crore, of which ₹100.00 crore is to be borrowed. The filing does not say how much of the project was spent by the filing date, what revenue or return the plant is expected to earn, or the split of the project cost by item.

The company also issued and allotted 86,95,400 fully convertible equity warrants at ₹115.00 each on a preferential basis, after stock exchange approval on 07 Oct 2026. Upfront subscription of ₹28.75 per warrant, 25% of the issue price, aggregating ₹25.00 crore, was received; each warrant converts into one equity share of ₹10 within 18 months of allotment. The next dated step is the plant's expected completion by March 2028.

Reference: Original filing (PDF)

Sign up to continue reading

Create a free account to read the rest of this article and the analysis that follows.

Disclaimer:

The information available on this article is provided for education and informational purposes only. It does not constitute or provide financial, investment or trading advice and should not be construed as an endorsement of any specific stock or financial strategy in any form or manner. We do not make any representations or warranties regarding the quality, reliability, or accuracy of the information provided. This website may contain links to third-party content. We are not responsible for the content or accuracy of these external sources and do not endorse or verify the information provided by third parties. We are not liable for any decisions made or actions taken based on the information provided on this website.