Why Are Venus Pipes Shares Rallying? SEBI Analyst Explains

Venus Pipes & Tubes shares climbed up to 4.3% on Wednesday, rebounding from a decline of more than 4% in the previous session.

Q1 Print

The company reported a 10% drop in net profit for the June quarter at ₹247.64 million, even as revenue from operations during the period climbed 15% to ₹2.76 billion. Its bottom-line was impacted by a 20% increase in total expenses. PAT margins shrunk to 9% from 11.5% in the previous corresponding period.

FY26 Outlook

SEBI-registered Front Wave Research noted the revision in the company’s FY26 revenue growth guidance to 25%, up from the earlier estimate of 20%. For FY27, a revenue growth of around 20% is anticipated. Margins are expected to come in at the 16 – 18% range.

Exports continue to perform well, with the US contributing only a small share, limiting exposure to volatility in the market. On the domestic front, demand is projected to strengthen, led by robust orders from the power sector, they said.

Additionally, the imposition of duties on Chinese products is expected to further boost demand for Indian stainless-steel players, creating a favourable growth environment.

The company’s capacity expansion for fittings project and seamless pipes as well as piercing line remains on track to commence operations from H2FY26.

“We remain optimistic about our growth trajectory, supported by our diversified market reach, strong customer relationships, and proven execution capabilities. At the same time, we remain vigilant of the evolving global economic environment and will continue to adapt our strategies accordingly,” said Managing Director Arun Kothari in a presentation on Tuesday.

Retail Sentiment Watch

Despite ‘extremely high’ chatter on Stocktwits, retail sentiment for the stock remained ‘neutral’. It was ‘bearish’ a week earlier.

The stock has lost over 13% in value so far this year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<