Maharashtra Seamless Limited (MSL) has made available the transcript of its earnings conference call held on January 29, 2026. The call, hosted by ICICI Securities Limited, featured insights from Mr. Kaushal Bengani, Deputy General Manager, Investor Relations & Finance at MSL. During the call, Mr. Bengani highlighted a regular quarter with improved margins on both seamless pipes and ERW segments, attributed to better product mix and reversal of inventory markdown. Other income also saw a boost due to improved market sentiment in the gold and silver sectors. Discussions covered the product mix, with the current order book standing at ₹1,302 crores, of which 33% comprises ONGC and Oil India orders. While the company does not disclose product-wise margins, it was clarified that casing pipes and tubing pipes are considered regular seamless pipes, and value-added products include cold-drawn pipes, cylinder pipes, drill pipes, sour service subsea seamless pipes, and premium connections. MSL manufactures four of these five categories and expects to start production of premium connections within six months. Capacity expansion plans were also discussed, with the cold-drawn pipes project completed and a finishing line at Telangana, involving purchase orders of ₹90 crores, expected to commence partial operations in the current quarter. This finishing line aims to resolve a bottleneck and enable utilization of existing production capacity. The company indicated that the drill pipe market is small, around 8,000-9,000 tons annually, but these are high-margin orders. MSL is part of the metal tube association but operates in a niche market dependent on government expenditure in the oil and gas sector. Regarding treasury, MSL holds approximately ₹3,500 crores in liquid investments, with over 24% portfolio return for the nine months ending December 2025. The management emphasized a focus on long-term value creation and conserving cash, with a strategy to acquire distressed assets rather than buying at full value. They also highlighted that MSL is the only player in the seamless pipe industry to have consistently remained a market leader for 35 years, contrasting with peers who have faced bankruptcy. Future growth prospects are tied to government expenditure, particularly in the oil and gas sector, with the upcoming Union Budget expected to provide more clarity. The company's EBITDA per ton is anticipated to remain in the range of ₹10,000 to ₹15,000. Regarding exports, MSL is reviewing the impact of the FTA with Europe and expects to provide updates in the next quarter's call. The acquisition of United Seamless Tubular was deemed successful, having paid back its investment within two years and providing significant tax benefits. The company addressed changes in CFOs, assuring consistency with the current CFO, Mr. Arup Mandal, and highlighting the long tenure of the Investor Relations team. Regarding premium connections, the Indian market size is estimated at 50,000 to 1 lakh tons per annum, with MSL aiming to capture a share of this market currently supplied by Jindal Saw and imports.
