Steamhouse India shares jumped nearly 10% in Tuesday's trade after the company reported impressive Q1 FY27 financial results. According to Business Standard, the stock opened sharply higher at ₹115 on NSE and extended gains to hit an intraday and record high of ₹118.40, with around 12 million shares changing hands on the exchanges. Since its stock market debut on September 17, Steamhouse India has rallied around 15.5%, demonstrating sustained investor interest in the company's business model and growth trajectory. The company's shares made their D-Street debut at a 17% premium over the issue price, opening at ₹94.50 apiece on NSE, up ₹13.5 or 16.5% from the issue price of ₹81.
For Q1 FY27, Steamhouse India delivered robust financial performance with revenue from operations increasing 13.35% year-on-year to ₹128.62 crore from ₹113.47 crore in the corresponding quarter last year. As reported by Business Standard, net profit jumped 80.2% to ₹18.34 crore from ₹10.17 crore in the year-ago period, demonstrating significant operational leverage. The company's operational EBITDA, excluding other income, stood at ₹30.9 crore in the quarter, compared with ₹19.3 crore in Q1 of the previous fiscal year, reflecting a 60.08% year-on-year change. The growth was primarily driven by a 46.07% increase in steam sales, with the company attributing margin improvements to optimal utilisation of waste-to-energy boilers and operating leverage from higher steam sales. Steam volumes increased 16.70% with 3,05,816 tonnes of steam sold during the quarter, while PAT margin also expanded to 14.26% from 8.97% in the year-ago quarter and 10.18% in the March quarter.
According to Business Standard, the company's revenue mix was led by generation and distribution of steam, which accounted for 73.7% of revenue, followed by purchase and distribution of steam at 22.2%. Total expenses increased only 6.65% to ₹1,089.66 million while revenue grew 13.35%, contributing to the substantial drop-through of revenue growth to bottom-line profit. The cost of materials consumed saw a sharp sequential reduction from ₹374.58 million in Q4FY26 to ₹586.08 million in Q1FY27, reflecting improved operational efficiency. Despite ongoing geopolitical uncertainties creating inflationary pressures including higher coal prices, the company maintained its steam margins through its pass-through mechanism, under which changes in coal costs are passed on to customers in line with the terms of its Steam Supply Agreements. Steamhouse India serves over 167 industrial clients across sectors including chemicals, textiles, pharmaceuticals, food processing, paper and manufacturing through its centralised utility model using dedicated pipeline infrastructure.
During the quarter, Steamhouse India secured a ₹311 crore EPC mandate for a 300 TPH community boiler facility at Bulk Drug Park, Una, Himachal Pradesh, inclusive of GST. This project includes long-term O&M services, creating significant opportunities for recurring revenues. The company is also strengthening its green energy portfolio with a 3.04 MW AC ground-mounted solar project at Ankleshwar. Additionally, Steamhouse has submitted an Expression of Interest for a proposed 400 TPD Waste-to-Steam project with Surat Municipal Corporation and continues expanding its nitrogen business through pipeline infrastructure. The company's green boiler capacity is expected to expand seven-fold from 15 TPH in FY26 to 105 TPH in FY27. As per Vishal S. Budhia, Promoter, Chairman and MD, the company remains focused on expanding its community boiler footprint, participating in upcoming tenders, adding new projects, and strengthening its nitrogen business to drive sustainable long-term growth.
The company's IPO was subscribed nearly 32 times overall, with the retail portion receiving 18 times subscription, Non-Institutional Investors (NII) category getting 46.60 times subscription, and Qualified Institutional Buyers (QIBs) subscribing 46.19 times their allotted portion. According to The Economic Times, the IPO raised ₹4,140 million, comprising a fresh issue of ₹2,750 million and an offer for sale of ₹1,390 million. During the quarter, the company issued 6,849,315 equity shares at an issue price of ₹73 per share, raising ₹499.99 million via private placement. Additionally, the company issued non-convertible debentures aggregating to ₹750 million, with Tranche 1 of ₹500 million disbursed, providing substantial capital for future growth initiatives. On September 28, 2026, ICRA upgraded the company's long-term ratings to [ICRA]BBB+(Stable) from [ICRA]BBB(Stable), following its successful ₹353-crore fresh issue IPO and a ₹50-crore pre-IPO funding round in June 2026.
