Steel Exchange India posts ₹340 crore Q2 revenue

Steel Exchange India posted a provisional Q2 FY27 revenue of approximately ₹340 crore, driven by record Re-Bar production. The company achieved an all-time high quarterly output of 69,617 Metric Tonnes. Provisional revenue surged 46% YoY to ₹340 crore and 25.6% QoQ, supported by September's peak monthly production of 25,095 MT. This was catalyzed by the new Reheating Furnace, which added 7,417 MT last month, alongside raw material security from the NMDC partnership. This proves the recent capex cycle is translating directly into physical volume for its Simhadri TMT brand. I am watching the Q3 FY27 margin realization in December 2026 to see if the NMDC synergy offsets rising coking coal costs, and the exact capacity utilization rate of the new furnace. The market is cheering the 46% revenue jump as a pure cyclical steel upswing. What the consensus misses is the structural margin defense created by the NMDC partnership and the new Reheating Furnace. Most mid-cap TMT players get crushed when raw material costs spike because they buy spot iron ore. By locking in NMDC supply and adding internal reheat capacity, Steel Exchange is mechanically lowering its conversion cost per tonne. The market prices this as a standard volume play, ignoring that this specific operational setup creates a permanent cost advantage that will protect EBITDA margins even if global steel prices correct. Accumulate for long-term margin and volume expansion. Disclosure: I do not hold positions in this stock. This is for educational purposes only and does not constitute investment advice.