Maharashtra Seamless (500265) Q3 25/26 earnings summary

Executive summary

• Margins improved in both seamless and ERW pipes, with overall EBITDA and PAT higher compared to previous quarters, aided by better product mix, reversal of inventory markdown, and improved market sentiment.

• Q3 FY26 revenue was ₹1,290 crore, down from Q3 FY25, but PAT rose to ₹247 crore, with EBITDA margin improving to 20%.

• Board approved unaudited consolidated and standalone financial results for Q3 and nine months ended 31st December 2025.

• Order book stands at ₹1,302 crore, with 33% from ONGC and Oil India, reflecting a higher proportion of oil sector orders.

Financial highlights

• Total EBITDA increased sequentially, supported by margin improvements and reversal of prior inventory markdown.

• Standalone revenue for Q3 FY26 was ₹1,090.14 crore, with consolidated revenue at ₹1,090.29 crore; nine-month revenue was ₹3,391.50 crore (standalone) and ₹3,394.23 crore (consolidated).

• Standalone net profit for Q3 FY26 was ₹247.16 crore, up from ₹190.17 crore in Q3 FY25; consolidated net profit was ₹242.65 crore, up from ₹186.06 crore.

• Other income was boosted by strong treasury returns, with a portfolio return exceeding 24% for the nine months ending December 2025.

• Dividend payout has been maintained at quadrupled levels from FY 2022 to FY 2025, even with lower profit in FY 2025.

Outlook and guidance

• Management expects margins to remain stable in the ₹10,000–15,000 per ton range for coming quarters.

• Order book as of 20 January 2026 stands at ₹1,302 crore, with 33% from ONGC & OIL and 67% from other segments.

• Growth prospects are closely tied to government expenditure in the oil and gas sector, with expectations of revival post Budget 2026.

• No material margin decline is anticipated, and the company is monitoring the impact of the upcoming Union Budget.

• Back-to-back raw material booking strategy locks in margins and minimizes raw material price volatility.