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Maharashtra Seamless reported a 16% rise in June-quarter profit despite a decline in revenue, helped by improved operating margins. The company said production was affected by a temporary gas supply disruption caused by the war.
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Maharashtra Seamless Ltd, a manufacturer of seamless and ERW steel pipes and tubes, reported a sharp year-on-year rise in net profit for the June quarter, even as revenue declined during the period.
The company's consolidated net profit increased 15.68% to ₹266.4 crore in the April-June quarter from ₹230.3 crore a year earlier. Revenue from operations, however, fell 4.7% to ₹1,091.2 crore, compared with ₹1,145.2 crore in the corresponding quarter last year.
Operating performance improved during the quarter. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) rose 8.6% year-on-year to ₹183 crore from ₹168.4 crore, while the EBITDA margin expanded to 16.7% from 14.7% in the year-ago period.
The company's core steel pipes and tubes business, which accounts for the bulk of its revenue, generated ₹1,069.32 crore during the quarter, down from ₹1,126.44 crore a year earlier.
Revenue from the power-electricity segment remained largely flat at ₹20.58 crore, while the rig business rose to ₹15.10 crore from ₹9.06 crore.
The firm added that production and sales volumes declined in the June quarter compared with a year ago. Seamless pipe production fell to 97 kMT from 109 kMT, while ERW production declined to 19 kMT from 22 kMT.
The company said the decline in production during the quarter was on account of a temporary disruption in gas supply caused by the war.
On the sales front, seamless pipe sales dropped to 96 kMT from 103 kMT, whereas ERW sales remained unchanged at 20 kMT year-on-year.
Separately, the company's board approved the appointment of Shiv Kumar Singhal as Whole-time Director for a period of three years with effect from Aug. 7, 2026, subject to shareholders' approval.
The board also approved the appointment of Dr. Raj Kamal Agarwal as an Independent Director for a term of five years beginning Aug. 7, 2026, also subject to shareholders' approval.
Maharashtra Seamless said both appointees are not debarred from holding the office of director by virtue of any order passed by the Securities and Exchange Board of India (SEBI) or any other authority.
Shareholding pattern
The company's promoter holding remained unchanged at 70.28% during the June quarter. Meanwhile, foreign institutional investor (FII) holding increased to 9.72% from 9.58%, while domestic institutional investor (DII) holding rose to 3.84% from 3.29% in the previous quarter.
As a result, the combined FII and DII stake increased to 13.56% from 12.87%, with the total number of institutional investors rising to 194 from 191.
Shares of Maharashtra Seamless Ltd. ended 0.65% higher at ₹587.60 on Friday, ahead of its June quarter earning announcement.
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