P S Raj Steels Ltd Management Discussions

The global economy exhibited baseline resilience through 2025, expanding at an estimated 2.8% to 3.0% despite lingering structural disparities. Macroeconomic pressures—notably elevated capital financing costs and geopolitical trade shifts—gradually stabilized due to synchronized central bank rate resets. Moving into 2026, the international business landscape remains cautiously constructive, yet sensitive to volatile trade policy realignments, tariff restructures, and localized supply chain challenges. For specialized materials like stainless steel, global demand continues to migrate toward high-efficiency industrial infrastructure, offsetting subdued traditional commercial building output.

India firmly consolidated its macroeconomic position as the worlds fastest-growing major economy during the fiscal year under review. According to the Governments First Advance Estimates, Indias Real GDP growth surged to a robust 7.4% for F.Y. 2025-26, outperforming initial range-bound expectations of 6.5% from previous periods. This exceptional momentum was supported by a parallel economic mechanism: robust domestic private consumption (with Private Final Consumption Expenditure climbing to 61.5% of GDP) and an accelerating Gross Fixed Capital Formation (GFCF) rate which held strong at 7.8%. On the structural front, the industrial and manufacturing sectors expanded steadily, insulated by stable domestic inputs and a significant moderation in headline retail inflation, which dropped to a historical low of 1.7%.

• Real GDP Growth Rate: 7.4%
• Gross Value Added (GVA): 7.3%
• Private Consumption/GDP: 61.5%
• Capital Capex Share/GDP: -4.0%

Looking forward, Indias macroeconomic trajectory remains structural and highly positive. Major international bodies, including the IMF and the Union Budget forecasts, project real GDP growth to comfortably settle between 6.8% and 7.2% for F.Y. 2026-27. Growth will continue to be driven by:

• Sustained Public & Private Capex: The central governments effective capital outlay is maintained near 4% of GDP, driving aggressive downstream demand across roads, transport logistics, urban sewage architecture, and heavy manufacturing.
• Rural Demand Recovery: Improved monsoon cycles and strong agricultural output are expected to continuously strengthen rural discretionary spending power.
• Monetary Policy Easing: Anticipated steps toward progressive liquidity easing by the Reserve Bank of India (RBI) are set to compress corporate borrowing costs, directly stimulating fresh capacity additions.

The global steel market faced a highly divided operating landscape. While developed economies recorded narrow contractions or sluggish plateaus due to high energy inputs and property market soft-patches in Europe and China, the global Stainless Steel Pipes and Tubes vertical held a firm valuation of approximately USD 35.8 Billion to USD 37.2 Billion. Crucially, international trade observed major structural adjustments due to massive exports from over-capacitated regional centers. However, this catalyzed widespread anti-dumping actions and regional protective import barriers. Concurrently, global industrial demand is pivoting rapidly toward clean energy infrastructure, process-plant capital expansions, and specialized corrosion-resistant components.

Indias domestic steel sector demonstrated spectacular growth. Driven by deep-rooted infrastructure mandates, Indias annual crude steel production expanded by 10.7% year-on-year to hit an all-time record of 168.4 Million Tonnes (MT) in F.Y. 2025-26. The countrys total installed steelmaking capacity has scaled to 220 MT actively keeping pace with the National Steel Policy target of 300 MT by 2030.

For the Stainless Steel Pipes & Tubes market, the local ecosystem has crossed a major threshold, valued at USD 2.40 Billion with an accelerating domestic CAGR of 8.9%.

1. Oil, Gas & Process Industry Capex: Expansions in chemical, refinery, and pharma plants requiring ASTM-compliant SS pipes.
2. Public Infrastructure: National Green Hydrogen Mission and desalination setups mandating anti-corrosive conduits.
3. Green Steel Taxonomy (2025-2026): A strategic regulatory shift favoring circular, low-carbon steel components.

The business outlook for the Indian steel pipes and tubes industry for F.Y. 2026-27 is exceptionally strong, with domestic consumption projected to advance by 8% to 9%. The market is transforming rapidly due to localized policy support, including the continuing Production Linked Incentive (PLI) scheme for specialty steel, structural custom duty barriers protecting local micro-and-SME units from cheap alloy dumping, and strict local sourcing norms under government tenders.

While raw material volatility—specifically price corrections in Hot Rolled Coils (HRC) and nickel inputs—will require sharp working capital management, P S Raj Steels Limited is ideally positioned. The structural push toward high-purity industrial piping, urban transportation setups (such as modern railway coach and metro rail layout components), and advanced capital equipment guarantees a multi-year growth runway for your Companys specialized product line.

Currently our Company is engaged in one type of product and involves manufacturing and trading of Stainless Steel Pipes, Tubes and coils so there is no segment wise or product wise performance available.

Our Company was originally incorporated as P S Raj Steels Private Limited as a private limited company under the Companies Act, 1956 on November 09, 2004 pursuant to a Certificate of Incorporation bearing CIN U27109HR2004PTC035523 issued by the Registrar of Companies, National Capital Territory of Delhi and Haryana. Thereafter, our Company was converted into a public limited company from a private limited company pursuant to a special resolution passed by the shareholders of our Company on May 17, 2024 consequent to which the name of our Company changed from P S Raj Steels Private Limited to P S Raj Steels Limited and a fresh Certificate of Incorporation bearing no. U27109HR2004PLC035523 was issued by the Registrar of Companies, NCT of Delhi and Haryana ("ROC") on August 06, 2024.

The Companys equity shares were listed on the NSE Emerge Platform on 19th February, 2025 and became a listed entity on NSE Emerge Platform w.e.f. 19th February, 2025. The Company has raised the total fund of Rs. 28.28/- Crore through SME IPO of the Company. The Companys SME IPO has received an exceptional response being oversubscribed by 9.16 times led by the strong participation from Retail Investors, Non-Institutional Investors and Qualified Institutional Buyers (QIBs).

Due to Recent BIS Regulations the import of Stainless Steels coils from China Vietnam has drastically reduced creating a high demand for domestic Steel Product (Steel Coils) which is a raw material. This pushed a price of Raw Material industry wide.

The company maintains internal control systems commensurate with the size and nature of its operations. These control are periodically reviewed and strengthened through appropriate standard operating procedures and management oversight.

Financial Performance during the year 2025-2026 are as follows:

The Company during the previous year continued its record of good industrial relations with its employees & other associated Shareholders. During the year various initiatives had been taken to improve the performance and productivity levels in various departments of the Company. The Company conducts training sessions on various topics ranging from safety, productivity, handling of hazardous products etc. that help to train employees to overcome operational constraints. The Company train the new recruits before their placement that helps in optimum utilization of resources as well as maintaining quality standards. It also indulges into and implements various HR initiatives and activities including employee welfare, special rewards, performance review system and various employee motivation activities.

Management Discussion and Analysis Report may be "forward looking statement" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied depending upon global and Indian demand-supply conditions, changes in government regulations, tax regimes, and economic developments within India and overseas.