Shares of Venus Pipes & Tubes Limited surged over 4 percent in intra-day trades on Wednesday, August 13, following the company’s Q1FY26 results.
Meanwhile, a positive review by Nuvama also aided the sentiment. The brokerage believes the company is well-positioned for robust growth and reiterated a ‘BUY’ rating with a revised target price of ₹2,290, up from ₹2,120, based on 25x Q1FY28E EPS.
Q1 Earnings
The Gujarat-based stainless steel pipes manufacturer posted revenue of ₹276.4 crore in Q1, up 15.1 percent from ₹240.1 crore in the same quarter last year. Net profit for the quarter stood at ₹24.8 crore, down 9.8 percent from ₹27.5 crore in Q1FY25, Nuvama noted.
Venus Pipes’ top line was supported by robust volume growth across both seamless and welded pipes, with seamless contributing 55 percent and welded 37 percent of revenue in Q1FY26, Nuvama said. Domestic revenue increased 10 percent sequentially, driven by strong demand from the power sector, while exports faced a near-term dip of 20 percent YoY. Nuvama highlighted that the company secured an order worth ₹1.9 billion for a thermal power project, to be executed over 15 months, reflecting ongoing confidence from domestic clients.
Despite revenue growth, EBITDA declined 6.5 percent to ₹44.9 crore, resulting in a margin contraction to 16.2 percent from 20 percent in Q1FY25, Nuvama observed. Pressure from higher staff costs, other expenses, and a lower share of welded pipes impacted profitability. PAT fell 10 percent YoY, influenced by higher depreciation and interest expenses. Nuvama noted that management expects margins to stabilize in the 16-18 percent range in the coming quarters, supported by an improved order book and value-added product mix.
Q1 Review
Venus Pipes & Tubes posted in-line Q1FY26 results, with revenue rising 15 percent YoY to ₹276.4 crore, while EBITDA and PAT declined 6 percent and 10 percent YoY due to a high-margin base in the previous year, Nuvama said. The domestic business strengthened, contributing 63 percent of revenue versus 56 percent in Q4FY25, aided by pent-up demand from the power sector.
The company’s exports, accounting for 37.3 percent of total revenue, faced a short-term decline due to global uncertainties and supply chain constraints, noted Nuvama. The company remains confident of a recovery in export performance once sectoral headwinds ease. Additionally, Venus commissioned a new 3,600MT capacity for value-added products, with fittings capacity planned for H2FY26. Out of a total capex of ₹1.75 billion, ₹1.2 billion is expected to be spent in FY26, supporting long-term growth.
Nuvama highlighted that Venus Pipes continues to receive strong enquiries from the power sector, with an order book currently valued at ₹5.6 billion. Management has revised volume growth guidance upward to 25 percent for FY26 from an earlier 20 percent, reflecting confidence in both domestic recovery and export opportunities.
Stock Price Trend
The stock rose as much as 4.2 percent to its day’s high of ₹1342.45. It is still 45 percent away from its 52-week high of ₹2,448.00, hit in August last year. Meanwhile, it had hit its 52-week low of ₹968.80 in April this year.
In the last 1 year, the stock lost over 38 percent while shedding 11 percent in 2025 YTD.