Shankara Buildpro targets 1.2 million tonnes of steel in FY27
Management expects 20% revenue growth and plans to open up to ten new fulfillment centers this fiscal year, citing a recovery in demand from June.
— 1 earlier story on Shankara Buildpro Ltd. →What's new
- Steel volumes hit 10.16 lakh tonnes in FY26, a 32% increase.
- Management targets 20% revenue growth and 3.3% to 3.5% EBITDA margins for FY27.
- The company plans to add seven to ten new fulfillment centers this year.
Why this matters
Shankara is betting on aggressive expansion despite recent demand softness. The margin guidance of 3.3% to 3.5% remains tight, leaving little room for error as the company pushes toward its 4% medium-term goal.
What we're watching
- Whether demand recovers in June as management expects.
- The pace of fulfillment center rollouts in the coming quarters.
- Progress toward the 4% EBITDA margin aspiration.
The full read
Shankara Buildpro moved 10.16 lakh tonnes of steel in FY26, a 32% jump that cleared the 1 million tonne mark. Management is now looking ahead to 1.2 million tonnes for FY27. To support this, the company plans to open seven to ten new fulfillment centers this fiscal year. Revenue growth is targeted at roughly 20%, with EBITDA margins expected in the 3.3% to 3.5% range.
Margins are thin.
While the company maintains a long-term aspiration of 4% margins, the immediate focus is a recovery from recent demand softness. Price hikes in March cooled activity in the first quarter, but management expects the market to turn from June. The strategy relies on scaling volume to offset thin margins, making the execution of these new centers the primary test for the year.
Questions answered
- What was the steel volume performance in FY26?
- Shankara moved 10.16 lakh tonnes of steel in FY26, representing a 32% year-on-year increase.
- What is the company's guidance for FY27 margins?
- Management expects EBITDA margins to fall between 3.3% and 3.5% for the year.
- How does management plan to expand its footprint?
- The company intends to add seven to ten new fulfillment centers during FY27.
- What is the outlook for demand in the near term?
- Management noted demand softness in the first quarter following March price hikes but expects a recovery starting in June.
Story so far
All notes on BUILDPRO →- 27 May 2026 · 11:58 AM IST Shankara Buildpro targets 1.2 million tonnes of steel in FY27
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