Ratnamani Metals & Tubes Limited – Investor Presentation Summary

Key Operational Highlights

  • Enhanced production capacities with ongoing expansion projects
  • Order book increased to INR 2,600+ crores (30% growth from previous quarter)
  • Key drivers: Capacity expansion, diversified order wins across sectors including defence, nuclear, and aerospace

Segment-wise Performance

Performance detailed for standalone and consolidated entities:

  • Standalone Q2 FY27 Revenue: ₹1,104.40 crore (18% YoY growth from ₹939.56 crore)
  • Consolidated Q2 FY27 Revenue: ₹1,347.51 crore (13% YoY growth from ₹1,191.69 crore)
  • H1 FY27 Standalone Revenue: ₹1,845.18 crore (vs. ₹2,001.96 crore in H1 FY26)
  • H1 FY27 Consolidated Revenue: ₹2,319.14 crore (vs. ₹2,343.31 crore in H1 FY26)

Explanation of significant changes: Margin pressure due to higher freight costs and overheads from uncertain global factors, though gross margins were maintained.

Financial Highlights

Standalone Q2 FY27:

  • Revenue: ₹1,104.40 crore
  • EBITDA: ₹138.77 crore (12.6% margin)
  • PAT: ₹79.57 crore (7.2% margin)
  • PBT: ₹106.32 crore (9.6% margin)

Consolidated Q2 FY27:

  • Revenue: ₹1,347.51 crore
  • EBITDA: ₹219.85 crore (16.3% margin)
  • PAT: ₹133.34 crore (9.9% margin)
  • PBT: ₹173.82 crore (12.9% margin)

YoY comparison:

  • Standalone PAT decreased from ₹108.19 crore in Q2 FY26 to ₹79.57 crore in Q2 FY27
  • Consolidated PAT decreased from ₹156.04 crore in Q2 FY26 to ₹133.34 crore in Q2 FY27
  • EBITDA margins declined both standalone (18.5% to 12.6%) and consolidated (20.0% to 16.3%)

Drivers of financial performance: Revenue growth offset by higher other expenses (standalone: ₹121.28 crore to ₹235.15 crore; consolidated: ₹163.00 crore to ₹283.10 crore) and increased freight costs.

Key Risks: Uncertain global factors impacting costs, raw material price fluctuations.

Geographical Revenue Split

Not Specified

Balance Sheet Snapshot

As of March 31, 2026 (Consolidated):

  • Total Assets: ₹5,387.60 crore
  • Total Equity: ₹4,207.72 crore
  • Borrowings: ₹304.27 crore (₹163.14 crore non-current + ₹141.13 crore current)
  • Net Debt/Equity: Not explicitly provided but company states "debt free on standalone basis"

Standalone:

  • Total Assets: ₹4,632.02 crore
  • Total Equity: ₹4,080.68 crore
  • Reserves: Included in Other Equity of ₹4,066.66 crore

Financial Health Insights: Strong equity base, moderate borrowing at consolidated level, debt-free standalone position.

Capex & Cash Flow Health

Capital Expenditure: Ongoing expansion projects including:

  • 18m Spiral Mill upgrade (capacity: 1 lakh MT p.a.)
  • External 3LPE coating plant (capacity: 25 lakh sq. metres p.a.)
  • Greenfield project for automatic hot former (targeted commissioning in 2026-27)

Cash Flow (Year ended March 31, 2026):

  • Consolidated Operating Cash Flow: ₹936.01 crore
  • Consolidated Investing Cash Flow: (₹1,147.64) crore
  • Consolidated Financing Cash Flow: ₹59.22 crore

Investment Rationale: Focus on capacity expansion, technology upgrades, and catering to rising demand from EV adoption and India's emergence as alternate sourcing hub.

Strategic & R&D Initiatives

New Approvals and Orders:

  • Fertiliser: Approval to supply stainless steel seamless U-tubes for carbamate condensers
  • Nuclear: Orders for HP heater cold finished tubes, hairpin heat exchanger seamless tubes (first order in UNS N04400), development order for steam generator tubes (UNS N08800)
  • Aerospace: Global supply agreement with SAFRAN, supplied critical seamless tube size of 138 × 1 mm

Capacity Enhancement:

  • Spiral Mill-3 upgraded to manufacture pipes up to 18 metres long (Size range: 457.2 to 3,658 mm diameter; 4 to 25.4 mm thickness)
  • External 3LPE coating plant commissioned in Odisha

Expected impact on growth: Enhanced production capacities to support order book execution and market expansion.

Strategic Rationale: Diversifying into high-growth sectors (defence, nuclear, aerospace), expanding product portfolio, and geographic reach through subsidiaries.

Industry Trends & Business Environment

Macro/Industry Trends: Rising demand for high-volume mid-sized bearings driven by EV adoption, India's emergence as alternate sourcing hub, growing nuclear and aerospace sectors.

Impact on Company: Driving capacity expansion investments, order book growth, and export opportunities.

Management Commentary & Growth Outlook

Strategic Outlook: Focus on diversified opportunities across sectors, capacity enhancement, and leveraging India's manufacturing position.

FY Guidance: Not explicitly provided, but expansion projects targeted for commissioning in 2026-27.

Market Share Targets: Not Specified

Risks and Opportunities: Uncertain global factors impacting costs, but strong order book provides revenue visibility.

ESG Updates

  • Commissioned 11 MW of solar power plants in total; ~50% of energy needs sourced from green energy
  • Awarded by SKF India for best-in-class ESG practices
  • ESG rating: Score of 69 ('Aspiring' category) by NSE Sustainability Ratings & Analytics
  • 52 MW captive clean energy projects commissioned
  • ~100% key raw materials sourced sustainably
  • 29% total energy from clean sources
  • 100% manufacturing plants compliant with ZLD mechanism
  • Zero fatalities in 2025-26
  • 16,500+ training hours in 2025-26
  • 3,00,000+ people provided eye-care through 'Drashtirath' initiative
  • 23,000+ CSR beneficiaries in 2025-26
  • CSR expenditure: ₹2.23 crores between April and September 2026