Shankara Building Products Limited reported a 27% year-on-year increase in revenue to ₹1,644 crore for the first quarter of FY26. The company's EBITDA also grew by 43% YoY, while PAT saw a significant increase of 102% YoY.
| Particulars | Q1 FY26 | Q4 FY25 | Q1 FY25 | YoY Change |
|---|---|---|---|---|
| Revenue from Operations | 1,644 | 1,639 | 1,291 | 27% |
| Other Income | 0 | 1 | 1 | -26% |
| Cost of Materials Consumed | 1,545 | 1,547 | 1,216 | 27% |
| Employee Expenses | 15 | 14 | 14 | 14% |
| Other Expenses | 25 | 27 | 20 | 22% |
| EBITDA | 59 | 52 | 41 | 43% |
| EBITDA Margin % | 3.58% | 3.20% | 3.19% | +39 bps |
| Depreciation | 4 | 4 | 4 | -5% |
| Finance Cost | 12 | 12 | 16 | -22% |
| Profit before Tax | 43 | 37 | 22 | 99% |
| Tax | 10 | 8 | 5 | 90% |
| Profit after Tax | 32 | 28 | 16 | 102% |
| PAT Margin % | 1.97% | 1.73% | 1.24% | +73 bps |
| Basic EPS (in ₹) | 13.37 | 11.72 | 6.62 | 102% |
Financial Performance
Shankara Building Products reported robust growth in Q1FY26, with revenue from operations increasing by 27% year-on-year to ₹1,644 crore. This growth was primarily driven by a 35% increase in steel volumes. The company's EBITDA margin improved to 3.58%, up 39 bps YoY, due to the cessation of inventory losses and improved steel realizations up until mid-quarter. Profit after tax (PAT) also saw a significant increase of 102% YoY, reaching ₹32 crore.
Operational Highlights
The company achieved its highest-ever sales in steel, with volumes reaching 2.38 lakh tonnes. Sales in the non-steel category amounted to ₹144 crore. Shankara Building Products opened a new store in Jabalpur and a fulfillment center in Gannavaram, Vijayawada, expanding its geographical presence. The company is on track to achieve a steel volume of over 1.0 million tonnes in FY26.
Strategic Updates
Shankara Building Products is progressing with its demerger implementation, with the next NCLT (National Company Law Tribunal) meeting scheduled for August 21, 2025. The company aims to create two distinct entities: Shankara Buildpro Limited, focusing on the building materials marketplace, and Shankara Building Products Limited, concentrating on manufacturing operations.
Steel and Non-Steel Performance
The steel segment continued to drive volume growth, with a 35% YoY increase in revenue, reaching ₹1,500 crore. However, the non-steel segment faced industry headwinds, resulting in a 5% YoY revenue growth to ₹144 crore. The company is focusing on emerging categories such as electrical, lighting, and paints to boost growth in the non-steel segment.
Volume Thrust in Steel Marketplace
The company delivered a robust 2.38 lakh tonne steel volume in Q1FY26. This volume growth was aided by some increase in realizations up until mid-quarter. The company is aiming to exceed the 1.0+ MT volume target for FY26.
Working Capital Management
Shankara Building Products maintained efficient working capital management, with working capital days at 29 in Q1FY26, compared to 30 days in FY25. This, along with better management of finance costs, has contributed to improved profitability.
