Vibhor Steel Tubes Share Surges Almost 13% as Odisha Plant Production Starts

Mumbai, August 26, 2025 : Vibhor Steel Tubes Ltd (NSE: VSTL, BSE: 544124) share price jumped 12.79% to ₹175.99 on Tuesday morning trade. This was after the company said it had started commercial supply from its greenfield plant commissioned in Sundargarh, Odisha. The share opened at ₹156.04 and rose to an intraday high of ₹187.24, ranking among the top gainers at the bourses.

Founded in 2003, Vibhor Steel Tubes Ltd is a manufacturer and exporter of steel pipes and tubes, catering to heavy engineering, construction, and industrial sectors. The company has a long-standing contract manufacturing agreement with Jindal Pipes Ltd, supplying finished goods under the Jindal Star brand.

Current Stock Performance

Vibhor Steel Tubes share price surged 5.33% to ₹164.36 as of 2:40pm IST, after hitting an intraday high of ₹187.24 and a low of ₹155.98, compared with the opening price of ₹156.04. The stock now carries a market capitalization of ₹309.74 crore and a P/E ratio of 26.17.

What Triggered the Rally

The steep spurt came on the heels of Vibhor Steel announcing that its Unit III facility in Odisha, with 1.56 lakh MTPA capacity, has formally commenced producing Electric Resistance Welded (ERW) and Galvanized Iron (GI) pipes. Developed at a cost of ₹119.83 crore in 30 months, the new facility raises the company’s overall installed capacity to 3.77 lakh MTPA in Maharashtra, Telangana, and Odisha.

In addition to steel pipes, the Sundargarh unit will produce value-added items like crash barriers, power transmission towers, and high-mast lighting poles – a step aimed at diversifying revenues and increasing operating margins.

Management Commentary

Chairman and Executive Director of Vibhor Steel Tubes, Vijay Kaushik, said:

“The commencement of supply from our Sundargarh facility marks a significant milestone in strengthening our production and distribution capabilities. The state-of-the-art plant focuses on high value-added products, which will boost margins, open new markets, and increase exports.”

Financial Performance Snapshot

In the quarter ended June 30, 2025 (Q1 FY26), Vibhor Steel has recorded a net profit of ₹3.14 crore on operating income of ₹230.96 crore. This is as compared to a profit of ₹11.77 crore on ₹996.38 crore revenues in FY25 and a profit of ₹17.72 crore on ₹1,072.71 crore revenue in FY24.

Even with lower FY25 topline numbers, the company has been consistently moving towards value-added steel products, which have helped maintain margins and provide long-term growth opportunities.

REF: https://nsearchives.nseindia.com/corporate/VIBHOR_25082025140929_intimation_of_press_release.pdf

Disclaimer:  At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations