Maharashtra Seamless held its Q3 FY26 earnings conference call on January 29, 2026. The call highlighted a slight margin increase in seamless pipes and improved ERW margins due to better product mix. EBITDA was higher, boosted by other income from improved market sentiment in the gold and silver sector. The company’s order book stands at INR 1,302 crores, with 33% from ONGC and Oil India.
Financial Performance
In Q3 FY26, Maharashtra Seamless experienced a slight increase in margins for seamless pipes. Additionally, ERW margins improved due to an enhanced product mix. Overall EBITDA saw an uptick, supported by other income derived from positive market sentiment in the gold and silver sectors. The company’s total portfolio return for the nine months ending December 2025, is in excess of 24%.
Order Book Details
The current order book is valued at INR 1,302 crores, with 33% attributed to ONGC and Oil India orders. This order book is broadly similar to the previous quarter, with a slight increase in the proportion of oil sector orders. The order book reflects orders for a period of three to four months. Imports account for 20%-25% of the domestic industry size, which is around 9 lakh tons.
Strategic Initiatives and Outlook
Maharashtra Seamless is focusing on treasury management and internal operational improvements. A finishing line project in Telangana is underway, aiming to enhance finishing capacity. The company has quadrupled its dividend payout from FY22 to FY24 and maintained the same level in FY25. The company is also looking for inorganic opportunities, focusing on distressed assets that make sense for their cyclical industry. Maharashtra Seamless is partnering with a foreign entity for premium connections production, expected to commence in about six months. The annual drill pipes market is estimated at 8,000 to 9,000 tons for the entire country.
United Seamless Tubulaar
The acquisition of United Seamless Tubulaar for INR 477 crores, with an additional INR 73 crores invested to reactivate the mill, is performing well. The mill generates between INR 100 crores to INR 200 crores of EBITDA annually. The merger allowed Maharashtra Seamless to offset profits against unabsorbed depreciation and accumulated losses of United Seamless Tubulaar, resulting in tax savings of around INR 375 crores.
Future Expectations
The company expects a multiplier effect in the economy after the budget and anticipates no material decline in margins, expecting them to remain in the range of INR 10,000 to INR 15,000 per ton. The company continues to replenish its order book without compromising on tonnage dispatched.
Source: BSE
