Maharashtra Seamless reported Q2 FY26 revenue of ₹1,234 crores, a 5% decrease compared to Q1 FY26. EBITDA declined by 27% to ₹123 crores, with PAT decreasing by 44% to ₹130 crores. The company maintains a strong credit rating of AA+ and treasury of ₹3,115 crores. Order book improved by 20% to ₹1,378 crores. Margin revival is difficult due to Chinese dumping, oil & gas sector slowdown and inventory markdown.
Financial Performance Overview
In Q2 FY26, Maharashtra Seamless recorded a revenue of ₹1,234 crores, reflecting a 5% decline compared to the previous quarter (Q1 FY26). The company’s EBITDA decreased by 27%, reaching ₹123 crores, while Profit After Tax (PAT) saw a 44% reduction, settling at ₹130 crores. Earnings per share (EPS) stood at ₹10.
Key Financial Highlights
Despite the quarterly downturn, Maharashtra Seamless boasts a strong credit rating of AA+, the highest it has achieved in the past 11-12 years. As of September 30, 2025, the company’s treasury amounts to ₹3,115 crores, managed with strategic oversight.
Order Book and Capex
The company’s order book has shown positive momentum, increasing by 20% from the previous quarter to reach ₹1,378 crores. Capital expenditure (capex) activities in Telangana are ongoing, with purchase orders of ₹80 crores issued and payments of ₹52 crores made to date. The new line is expected to commence by the end of the current financial year.
Challenges and Outlook
Margins have been impacted by the oil and gas sector slowdown, continuous Chinese dumping, and inventory markdowns. The company is working on enhancing anti-dumping duty measures. There is overcapacity in China leading to Chinese products being dumped in India.
Dividend and Cash Conservation
The company has quadrupled its dividend in recent years and intends to maintain previous dividend levels. The rationale for conserving cash remains consistent with prior communications.
Market Dynamics
Imports are substantial at 20%-25% of the domestic industry size and impacting margins. Seamless pipe capacity in India is at 1.9 million tons while demand is at 1.3 million tons. Exports have not been strong.
Future Plans and Strategies
The company remains committed to utilizing its existing capacity fully. They are not planning to diversify and want to remain the market leaders. A new rig is in the final stage of refurbishment and will be deployed in about 10 days on its new ONGC contract.
Source: BSE
