Vibhor Steel Tubes bets on tower margins to lift revenue 50% by FY28
A ₹10 crore self-funded capex is the price of the mix shift. Transmission towers must reach a quarter of revenue for the 5% margin target to hold.
— 2 earlier stories on Vibhor Steel Tubes Ltd. →What's new
- Guided for ₹1,700 cr revenue by FY28, with FY27 target of ₹1,300-1,400 cr contingent on steel prices.
- Doubled capex to ₹10 cr for FY27, fully self-financed, for pole and tower capacity.
- Transmission towers to hit 25-30% of revenue by year-end, lifting EBITDA margins to 5%+.
Why this matters
This is a volume and margin story rolled into one. The 50% revenue growth target depends on a product mix pivot to high-margin items like transmission towers, which yield more than double the margin of pipes. The capex to make that pivot is small at ₹10 cr, but it's fully on the company's balance sheet.
What we're watching
- FY27 revenue landing versus ₹1,300-1,400 cr target, which is exposed to steel price swings.
- Timely commissioning of the second Jharsuguda galvanizing tank to clear order backlogs.
- CPRI certification for monopoles by Q2 FY27 to open metro tender eligibility.
The full read
Vibhor Steel Tubes wants to grow revenue 50% to ₹1,700 crore by FY28. The interim step is ₹1,300-1,400 crore in FY27, a target tied to steel prices. The core bet is a product mix pivot: transmission towers and high-mast poles, which yield more than double the margin of conventional pipes, are targeted to reach 25-30% of revenue by year-end. That shift is meant to lift EBITDA margins past 5%. To build the capacity, management doubled FY27 capex to ₹10 crore, a self-funded move. The second galvanizing tank at Jharsuguda, delayed by earlier timelines, is now due in 1.5 months to help clear a backlog of tower and guardrail orders. CPRI certification for monopoles is anticipated by Q2 FY27, which would unlock eligibility for metro tenders. The targets are specific. Execution on the mix shift is the test.
Questions answered
- What is the core revenue target laid out in the concall?
- Vibhor Steel Tubes guided for ₹1,700 crore in revenue by FY28, a 50% upside from FY26. The interim FY27 target is ₹1,300-1,400 crore, which management says is contingent on prevailing steel prices.
- How does the company plan to expand its margins?
- The focus is a product mix shift toward transmission towers and high-mast poles, which generate more than double the margin of conventional pipes. These products are targeted to reach 25-30% of revenue by year-end, which is meant to lift EBITDA margins to above 5%.
- What is the near-term operational bottleneck?
- The second galvanizing tank at Jharsuguda, which was delayed from an earlier timeline, is now expected operational within 1.5 months. It is needed to fulfill pending orders for towers and guardrails.
- What is the capex plan and how is it funded?
- The company doubled its FY27 capex projection to ₹10 crore. The investment is to expand capacity for high-mast poles and transmission towers and will be fully self-financed.
Story so far
All notes on VSTL →- 26 May 2026 · 4:19 PM IST Vibhor Steel Tubes bets on tower margins to lift revenue 50% by FY28
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