SARTHAK METALS — FROM STEEL CONSUMABLES TO A BIGGER

A small company. A tough cycle. And now, a diversification story that could change the growth trajectory. Sarthak Metals operates in cored wires, aluminium flipping coils and welding consumables, supplying products used across steelmaking, fabrication and heavy industrial applications. But the interesting part isn't where the company came from. It's where it's going. After two difficult years, FY26 finally brought the business back to growth. Revenue from operations increased 8% to ₹192.25 crore, EBITDA margin improved from 3.9% to 4.1%, while net profit rose 12% to ₹4.61 crore. And the core Cored Wires business showed encouraging traction. Volumes grew 14% during FY26, supported by technical marketing, customer support and product quality. But the bigger move is happening outside the traditional business. Flux Cored Wires. The company completed its first full year in this segment with ₹15.7 crore revenue and more than 1,400 tonnes sold. Capacity had already been expanded from 1,200 TPA to 3,600 TPA, creating room for a much larger contribution if customer adoption continues. And there is validation. Sarthak received RDSO approval from Indian Railways in April 2025 along with BIS certification for its flux-cored wire products. That opens applications beyond traditional steelmaking — into fabrication, infrastructure and industrial welding. Now look at the bigger equation: Steel → Cored Wires Infrastructure → Welding Consumables Railways → Specialised Welding Heavy Industry → Flux Cored Wires That's diversification. And Q1 FY27 gives another encouraging signal. Revenue reached ₹55.21 crore, up 19.4% YoY, while PAT increased 25.3% to ₹1.33 crore. The risks are real. Margins remain thin, the business remains exposed to steel and raw-material cycles, and competition can pressure pricing. FY25 showed how severely a weak steel cycle and cheap imports can affect profitability. So this isn't a mature compounder story yet.