Operating Leverage Inflection
Expected: Q3 FY26HIGH confidence
What: EBITDA Margin: 58.5%
Impact: 1120 bps expansion
Gandhi Special Tubes Ltd: Stock Analysis & Fundamentals
Updated this weekGandhi Special Tubes Ltd (Steel - Tubes/Pipes) — fundamental analysis, earnings data, and key metrics. PE: 15.1. ROE: 23.7%. This stock is not currently in the Nifty 500 momentum outperformers list.
Gandhi Special Tubes Ltd Key Facts
Earnings Acceleration Triggers
1. Operating Leverage Inflection
Q3 FY26HIGH
2. Share Buyback As Eps Catalyst
Q3 FY26MEDIUM
Key Risks
1. Implementation of New Labour Codes resulted in a one-time exceptional charge imp
MEDIUM2. Global tube industry is heavily dependent on hot-rolled steel prices, which are
MEDIUMSector-Specific Signals
Operating Margin (Excl OI)46.02%
Gross Profit Margin55.95%
Other Income₹6.03 Cr191.7%
Interest Expense₹0.04 Cr
Key Numbers
Current Price
₹860
Dividend Yield
1.75%
Market Cap
1.0K Cr
Valuation
N/AWhy Are Gandhi Special Tubes Ltd's Earnings Accelerating?
Based on Q3 FY26 (web) earnings • Updated Apr 18, 2026
Share Buyback As Eps Catalyst
Expected: Q3 FY26MEDIUM confidence
What: EPS: ₹16.81
Impact: 34.69% YoY increase
What Are the Key Risks for Gandhi Special Tubes Ltd?
Earnings deceleration risks from management commentary
Implementation of New Labour Codes resulted in a one-time exceptional charge imp
MEDIUMTrigger: Implementation of New Labour Codes resulted in a one-time exceptional charge impacting pre-tax profits.
Impact: PAT impact: ₹1.18 Cr
Management view: Recognized as an exceptional non-recurring impact.
Monitor: labor
Global tube industry is heavily dependent on hot-rolled steel prices, which are
MEDIUMTrigger: Global tube industry is heavily dependent on hot-rolled steel prices, which are rising in regional markets like Turkey.
Management view: Not Given
Monitor: commodity
What Did Gandhi Special Tubes Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹48.44 Cr
YoY +21.82%QoQ +0.85%
Revenue growth was primarily driven by a 21.8% year-on-year increase, though sequential momentum was flat at 0.85%.
EBITDA
₹28.33 Cr
YoY +50.6%Margin 58.5%
EBITDA margins expanded significantly by 1120 bps YoY to 58.5%, aided by a fair value gain on investments.
PAT
₹19.70 Cr
YoY +29.94%QoQ +11.35%
PAT grew 30% YoY despite an exceptional charge of ₹1.18 Cr related to new labor code implementation.
Other Highlights
• Exceptional charge of ₹1.18 Cr for New Labour Codes implementation.
• Other income included a fair value gain on investments of ₹14.16 Cr.
• Nine-month PAT grew 26.27% YoY to ₹58.99 Cr.
What Sector Metrics Matter for Gandhi Special Tubes Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Operating Margin (Excl OI)
46.02%
QoQ 222 bps
Why: Effective cost management and favorable product mix dynamics in the steel tubes business.
Gross Profit Margin
55.95%
QoQ 554 bps
Why: Substantial improvement from 50.41% in Q2 FY26.
Other Income
₹6.03 Cr
YoY 191.7%QoQ -25.28%
Why: Includes a fair value gain on investments of ₹14.16 Cr for the quarter.
Interest Expense
₹0.04 Cr
Why: Company operates as a virtually debt-free entity with zero long-term debt.
Employee Cost % of Revenue
5.02%
Why: Based on Mar 31, 2025 annual data, maintained at low levels.
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
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Frequently Asked Questions: Gandhi Special Tubes Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Gandhi Special Tubes Ltd's latest quarterly results?
Gandhi Special Tubes Ltd's latest quarterly results (Mar 2026) show
- PAT Growth YoY: -21.7%
- Revenue Growth YoY: +9.0%
- Operating Margin: 41.3%
What is Gandhi Special Tubes Ltd's current PE ratio?
Gandhi Special Tubes Ltd's current PE ratio is 15.1x.
- Current PE: 15.1x
- Market Cap: 1.0K Cr
- Dividend Yield: 1.75%
What is Gandhi Special Tubes Ltd's price-to-book ratio?
Gandhi Special Tubes Ltd's price-to-book ratio is 3.3x.
- Price-to-Book (P/B): 3.3x
- Book Value per Share: ₹260
- Current Price: ₹860
Is Gandhi Special Tubes Ltd a fundamentally strong company?
Gandhi Special Tubes Ltd's fundamental strength based on key financial ratios
- Return on Capital (ROCE): 32.0%
Is Gandhi Special Tubes Ltd debt free?
Gandhi Special Tubes Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹0 Cr
What is Gandhi Special Tubes Ltd's return on equity (ROE) and ROCE?
Gandhi Special Tubes Ltd's return ratios over recent years
- FY2024: ROCE 32.0%
- FY2025: ROCE 28.0%
- FY2026: ROCE 32.0%
Is Gandhi Special Tubes Ltd's cash flow positive?
Gandhi Special Tubes Ltd's operating cash flow is positive (FY2026).
- Cash from Operations (CFO): ₹55 Cr
- Free Cash Flow (FCF): ₹21 Cr
- CFO/PAT Ratio: 81% (strong cash conversion)
What is Gandhi Special Tubes Ltd's dividend yield?
Gandhi Special Tubes Ltd's current dividend yield is 1.75%.
- Dividend Yield: 1.75%
- Current Price: ₹860
Who holds Gandhi Special Tubes Ltd shares — promoters, FII, DII?
Gandhi Special Tubes Ltd's shareholding pattern (Mar 2026)
- Promoters: 73.5%
- FII (Foreign): 1.2%
- DII (Domestic): 0.1%
- Public: 25.2%
Is promoter holding increasing or decreasing in Gandhi Special Tubes Ltd?
Gandhi Special Tubes Ltd's promoter holding has remained stable recently.
- Current Promoter Holding: 73.5% (Mar 2026)
- Previous Quarter: 73.5% (Dec 2025)
- Change: 0.00% (stable)
Is Gandhi Special Tubes Ltd a new momentum entry or an established outperformer?
Gandhi Special Tubes Ltd is an established outperformer with 1 weeks of consecutive Nifty 500 outperformance.
What are the growth catalysts for Gandhi Special Tubes Ltd?
Gandhi Special Tubes Ltd has 2 key growth catalysts identified from recent earnings analysis
- Operating Leverage Inflection — Significant margin expansion suggests strong operational efficiency and benefit from investment gains.
- Share Buyback As Eps Catalyst — EPS growth outpaced PAT growth, likely reflecting the impact of previous share buybacks.
What are the key risks in Gandhi Special Tubes Ltd?
Gandhi Special Tubes Ltd has 2 key risks worth monitoring
- [MEDIUM] Implementation of New Labour Codes resulted in a one-time exceptional charge imp — Implementation of New Labour Codes resulted in a one-time exceptional charge impacting pre-tax profits.
- [MEDIUM] Global tube industry is heavily dependent on hot-rolled steel prices, which are — Global tube industry is heavily dependent on hot-rolled steel prices, which are rising in regional markets like Turkey.
What is Gandhi Special Tubes Ltd's management guidance for growth?
Gandhi Special Tubes Ltd's management has provided the following forward guidance
- Revenue outlook: Not Given
- Margin outlook: Not Given
What sector-specific metrics matter most for Gandhi Special Tubes Ltd?
Gandhi Special Tubes Ltd's most important sub-sector-specific KPIs from the latest concall
- Operating Margin (Excl OI): 46.02% (QoQ 222 bps) — Effective cost management and favorable product mix dynamics in the steel tubes business.
- Gross Profit Margin: 55.95% (QoQ 554 bps) — Substantial improvement from 50.41% in Q2 FY26.
- Other Income: ₹6.03 Cr (YoY 191.7%) (QoQ -25.28%) — Includes a fair value gain on investments of ₹14.16 Cr for the quarter.
- Interest Expense: ₹0.04 Cr — Company operates as a virtually debt-free entity with zero long-term debt.
- Employee Cost % of Revenue: 5.02% — Based on Mar 31, 2025 annual data, maintained at low levels.
Is Gandhi Special Tubes Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Gandhi Special Tubes Ltd may be worth studying
- Cash flow is positive — CFO ₹55 Cr
What is the investment thesis for Gandhi Special Tubes Ltd?
Gandhi Special Tubes Ltd investment thesis summary:
Research Signals (Bull Case)
- Growth catalyst: Operating Leverage Inflection
Risk Factors (Bear Case)
- Key risk: Implementation of New Labour Codes resulted in a one-time exceptional charge imp
What is the future outlook for Gandhi Special Tubes Ltd?
Gandhi Special Tubes Ltd's forward outlook based on current data signals
- Key Catalyst: Operating Leverage Inflection
- Key Risk: Implementation of New Labour Codes resulted in a one-time exceptional charge imp
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.