Mumbai, Aug 12 (IANS) Hi-Tech Pipes on Wednesday reported a 4.2 per cent year-on-year (YoY) decline in consolidated net profit for the June quarter (Q1 FY27), as a sharp rise in expenses and finance costs offset strong revenue growth.
The company’s consolidated net profit fell to Rs 20.04 crore in the quarter ended June 2026, compared with Rs 20.92 crore in the corresponding period last financial year (Q1 FY26), according to its stock exchange filing.
Following the earnings announcement, shares of Hi-Tech Pipes dropped as much as 6.9 per cent to Rs 78 on the NSE on Wednesday.
Revenue from operations surged 78.5 per cent to Rs 1,412.8 crore during the quarter from Rs 791.4 crore a year earlier.
Operating performance remained positive, with EBITDA rising 20.3 per cent to Rs 49.38 crore from Rs 41.03 crore in the year-ago quarter.
However, profitability margins came under pressure, with EBITDA margin contracting to 3.5 per cent from 5.2 per cent in Q1FY26.
The decline in margins was driven by a sharp increase in overall expenditure. Total expenses rose 81.5 per cent year-on-year to Rs 1,386.9 crore.
Purchases of stock-in-trade jumped significantly to Rs 280.5 crore from Rs 35.2 crore in the corresponding quarter last financial year, while finance costs more than doubled to Rs 15.67 crore from Rs 7.82 crore.
Earlier, the company had reported strong operational momentum during the quarter, with sales volumes increasing 26 per cent year-on-year to 1,56,136 metric tonnes (MT), compared with 1,24,027 MT in Q1 FY26.
On a sequential basis, sales volumes grew 6 per cent from 1,47,127 MT reported in the March quarter.
Hi-Tech Pipes attributed the growth to its diversified product portfolio, enhanced manufacturing capabilities and strong customer relationships.
The company said demand remained healthy across infrastructure, construction and engineering sectors, supporting volume growth and overall sales performance.
The company added that sustained demand from key end-user industries, coupled with ongoing capacity expansion initiatives, helped drive revenue growth during the quarter, although higher costs weighed on earnings.
–IANS
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