Financial Performance Highlights

Q2 FY27 Performance (YoY)

  • Revenue from Operations: ₹359.8 Cr, up 33% from ₹270 Cr in Q2 FY26
  • Gross Profit: ₹66.3 Cr, up 22% from ₹54.4 Cr in Q2 FY26
  • Gross Margin: 18.40% compared to 20.10% in Q2 FY26
  • Operating EBITDA: ₹33.4 Cr, up 38% from ₹24.2 Cr in Q2 FY26
  • Operating EBITDA Margin: 9.30% compared to 9.00% in Q2 FY26
  • Other Income: ₹2.1 Cr, up 303% from ₹0.5 Cr in Q2 FY26
  • Depreciation: ₹2.2 Cr, down 7% from ₹2.3 Cr in Q2 FY26
  • Finance Cost: ₹1.5 Cr, down 71% from ₹5 Cr in Q2 FY26
  • Profit Before Tax: ₹31.9 Cr, up 83% from ₹17.4 Cr in Q2 FY26
  • Tax: ₹8.2 Cr, up 95% from ₹4.2 Cr in Q2 FY26
  • Profit After Tax: ₹23.7 Cr, up 79% from ₹13.2 Cr in Q2 FY26
  • PAT Margin: 6.60% compared to 4.90% in Q2 FY26
  • EPS (not annualized): ₹2.84, up 48% from ₹1.92 in Q2 FY26

H1 FY27 Performance (YoY)

  • Revenue from Operations: ₹666.4 Cr, up 33% from ₹501.5 Cr in H1 FY26
  • Gross Profit: ₹122.1 Cr, up 13% from ₹108.1 Cr in H1 FY26
  • Gross Margin: 18.30% compared to 21.60% in H1 FY26
  • Operating EBITDA: ₹62.1 Cr, up 35% from ₹45.9 Cr in H1 FY26
  • Operating EBITDA Margin: 9.30% compared to 9.20% in H1 FY26
  • Other Income: ₹4.4 Cr, up 256% from ₹1.2 Cr in H1 FY26
  • Depreciation: ₹4.2 Cr, down 8% from ₹4.6 Cr in H1 FY26
  • Finance Cost: ₹3.2 Cr, down 69% from ₹10.2 Cr in H1 FY26
  • Profit Before Tax: ₹59.1 Cr, up 83% from ₹32.3 Cr in H1 FY26
  • Tax: ₹15.2 Cr, up 93% from ₹7.9 Cr in H1 FY26
  • Profit After Tax: ₹43.9 Cr, up 80% from ₹24.4 Cr in H1 FY26
  • PAT Margin: 6.60% compared to 4.90% in H1 FY26
  • EPS (not annualized): ₹5.25, up 48% from ₹3.54 in H1 FY26

Operational Performance Metrics

  • Q2 FY27 Realization: ₹212,047 per tonne, up from ₹187,936 per tonne in Q2 FY26
  • EBITDA per tonne: ₹21,386.64, up from ₹17,126 in Q2 FY26
  • H1 FY27 Realization: ₹202,099 per tonne, up from ₹180,018 in H1 FY26

Strategic Updates and Expansion Plans

Capacity Expansion

  • Existing melting capacity: 48,000 MTPA (utilized at 100% in FY26)
  • Capacity enhancement to 60,000 MTPA planned for FY27 (capacity already installed, pending commissioning)
  • Ongoing rolling mill and continuous caster upgrades to enhance product capabilities

Forward Integration Project

  • Establishing stainless steel seamless pipes unit with 9,600 MTPA capacity
  • Total capex: ₹57.47 Cr, funded through ₹39.16 Cr internal accruals and ₹18.31 Cr IPO proceeds
  • Expected commissioning date: April 1, 2027
  • Projected revenue: ₹250+ Cr after achieving 80% efficiency
  • Expected EBITDA margin: 30% post stabilization
  • Target: Achieve 80% capacity utilization by FY27-28
  • Estimated payback period: Less than 2 years

Renewable Energy Initiatives

  • Current renewable capacity: 7.5 MW (Solar: 3 MW, Windmill: 4.2 MW)
  • Finalized additional 2.1 MW windmill and 8 MW (DC) solar power project
  • Expected annual electricity cost savings: ~₹12 Cr
  • Amalgamation of Citizen Solar Private Limited aimed at lowering power costs

Balance Sheet Position (as of September 30, 2026)

Assets (₹ Cr)

  • Fixed assets (including right-of-use): ₹79.4 (vs. ₹71.1 as of March 31, 2026)
  • Capital work in progress: ₹4.0 (vs. ₹4.4 as of March 31, 2026)
  • Other non-current assets: ₹39.7 (vs. ₹12.2 as of March 31, 2026)
  • Inventories: ₹174.2 (vs. ₹181.8 as of March 31, 2026)
  • Trade receivables: ₹232.3 (vs. ₹137.5 as of March 31, 2026)
  • Cash, bank and current investments: ₹23.6 (vs. ₹134 as of March 31, 2026)
  • Other current assets: ₹85.6 (vs. ₹59.4 as of March 31, 2026)
  • Total assets: ₹638.8 (vs. ₹600.2 as of March 31, 2026)

Liabilities and Equity (₹ Cr)

  • Equity share capital: ₹83.6 (unchanged from March 31, 2026)
  • Other equity: ₹319.4 (vs. ₹279.7 as of March 31, 2026)
  • Borrowings: ₹11.4 (vs. ₹67 as of March 31, 2026)
  • Trade payables: ₹168.6 (vs. ₹129.5 as of March 31, 2026)
  • Other liabilities and provisions: ₹55.9 (vs. ₹40.4 as of March 31, 2026)
  • Total equity and liabilities: ₹638.8 (vs. ₹600.2 as of March 31, 2026)

Key Balance Sheet Metrics

  • Net worth: ₹403 Cr as of September 30, 2026
  • Debt-free milestone achieved: Fully repaid total debt of ₹96 Cr
  • Borrowings reduced to ₹11.4 Cr from ₹67 Cr as of March 31, 2026
  • Expected annual interest cost savings: ₹12-13 Cr

Business Overview and Market Position

Company Profile

  • 30+ years of experience since 1991
  • Aerospace-grade certification
  • Presence across 14 states & 2 UTs, exports to 9 countries
  • Integrated manufacturing facility in Gujarat
  • 80+ specialty grades and 1,000+ SKUs
  • Key customers: BHEL, L&T, Bharat Forge

Manufacturing Capabilities

  • Heat treatment facility: 2,000 MTPA capacity (100% utilization)
  • In-house oxygen plant: 350 cum/hr (100% utilization)
  • In-house nitrogen plant: 200 cum/hr (100% utilization)
  • Bright Bar Capacity: 6,000 MT (85% utilization in FY26)

Market Expansion Targets

  • Domestic: Expand from 14 to 20 states and 2-4 UTs by FY28
  • International: Increase exports from 9 to 25 countries
  • Revenue target: 89.8% domestic, 10.2% international by FY30

Current Order Book

  • Strong order book of approximately ₹500 Cr
  • Long-term capacity target: 200,000 MTPA

Management Commentary

Mr. Shankarlal Deepchand Mehta, Chairman & Managing Director, stated: "Rajputana Stainless Limited delivered a strong Q2 FY27, with revenue and PAT growing 33% and 79% YoY, respectively. H1 FY27 revenue increased 33% to INR 666.4 Cr, while PAT grew 80% to INR 43.9 Cr, reflecting improved operational performance and lower finance costs. We remain focused on expanding our stainless steel capabilities, strengthening our value-added portfolio and advancing our seamless pipes project. With a strong order book of approximately INR 500 Cr and a long-term capacity target of 2,00,000 MTPA, we are well positioned to drive sustainable growth and create long-term stakeholder value."