Hi-Tech Pipes shares fall 7% after Q1 profit slips; revenue jumps 79%

Hi-Tech Pipes reported a 4.2% year-on-year decline in consolidated profit for the first quarter of FY27, as expenses grew faster than revenue despite strong growth in sales and EBITDA.

Shares of Hi-Tech Pipes fell as much as 6.9% to ₹78 on the NSE on Wednesday (August 12) after the company reported its Q1FY27 results.

Profit stood at ₹20.04 crore in Q1FY27, compared with ₹20.92 crore in the year-ago period. Revenue from operations rose 78.5% year-on-year to ₹1,412.8 crore from ₹791.4 crore.

EBITDA rose 20.3% to ₹49.38 crore from ₹41.03 crore in the corresponding quarter last year. However, the EBITDA margin contracted to 3.5% from 5.2%.

Total expenses increased 81.5% year-on-year to ₹1,386.9 crore, led by a sharp increase in purchases of stock-in-trade and higher finance costs. Purchases of stock-in-trade surged to ₹280.5 crore from ₹35.2 crore a year earlier, while finance costs doubled to ₹15.67 crore from ₹7.82 crore.

The company had earlier reported a 26% year-on-year increase in sales volume

to 1,56,136 metric tonnes (MT) in Q1FY27, compared with 1,24,027 MT in Q1FY26. On a sequential basis, sales volumes increased 6% from 1,47,127 MT in Q4FY26.

Hi-Tech Pipes said the volume growth was supported by its diversified product portfolio, expanded manufacturing capacity and strong customer relationships, with demand remaining firm across the infrastructure, construction and engineering sectors.

The company said sustained demand across key end-user industries, along with capacity expansion, supported its sales performance during the quarter.