RATNAMANI - Ratnamani Metals

📊 NSE: RATNAMANI 🏢 Steel - Medium / Small 📅 Last Updated: 12/14/2025 11:40

💰 Financial Performance

Revenue Growth by Segment

Standalone revenue for H1 FY26 was INR 2,001.96 Cr, showing a marginal decline of 0.3% from INR 2,007.84 Cr in H1 FY25. The Ratnamani Finow Spooling Solutions (RFSS) subsidiary achieved INR 110 Cr in Q2 FY26, with a full-year guidance of INR 300 Cr+.

Geographic Revenue Split

The company has diversified its revenue base through exports over the past few years to reduce domestic market dependency. It is expanding its footprint in the Middle East with a new stainless-steel plant in Saudi Arabia expected by FY27.

Profitability Margins

Profit Before Tax (PBT) for H1 FY26 was INR 339.52 Cr (16.9% margin) compared to INR 276.25 Cr (13.7% margin) in H1 FY25, representing a 22.9% increase in absolute PBT. The company earns above-industry-average profits due to high-end application products.

EBITDA Margin

The company is expected to maintain a comfortable average EBITDA margin of 17-18% over the medium term. Profitability ratios have further improved following the consolidation of results from RTL and RFSS.

Capital Expenditure

Ratnamani is executing a total planned capex of approximately INR 550 Cr, including INR 170 Cr for forward integration in SSTP (completed FY24), INR 160 Cr for 100,000 TPA HSAW capacity addition (by FY25 end), and INR 220 Cr for the RFSS JV (by H1 FY26).

Credit Rating & Borrowing

CRISIL has assigned a 'Positive' outlook, reflecting a strong financial risk profile with gearing less than 0.2 times and interest coverage exceeding 20 times over the last five fiscals.

⚙️ Operational Drivers

Raw Materials

The primary raw materials are stainless steel and carbon steel, which are procured on a back-to-back basis to align with specific customer orders and mitigate price volatility.

Import Sources

Raw materials are sourced globally, with strategic presence in Switzerland (Ratnamani Trade EU) and a new manufacturing base being established in Saudi Arabia to serve the regional market.

Capacity Expansion

Current expansion includes a 100,000 TPA capacity addition in the carbon steel helical submerged arc welded (HSAW) pipes segment, expected to be completed by the end of fiscal 2025.

Raw Material Costs

Cost of materials consumed for H1 FY26 was INR 1,216.50 Cr, representing approximately 60.7% of standalone revenue. The company uses a back-to-back procurement strategy to manage cost fluctuations.

Manufacturing Efficiency

Efficiency is driven by expertise in high-end application products and forward integration into stainless-steel seamless pipes to capture more value in the supply chain.

Logistics & Distribution

Not disclosed in absolute INR.

📈 Strategic Growth

Expected Growth Rate

15-18%

Growth Strategy

Growth will be achieved through forward integration into high-margin stainless-steel seamless pipes, a 100,000 TPA capacity expansion in HSAW pipes, and scaling the RFSS nuclear spooling JV from INR 50 Cr to INR 350 Cr revenue. International growth is targeted via a new plant in Saudi Arabia by FY27.

Products & Services

Stainless Steel Tubes and Pipes (SSTP), Carbon Steel Pipes (HSAW/LSAW/ERW), and specialized spools for nuclear power plants.

Brand Portfolio

Ratnamani Metals & Tubes Ltd.

New Products/Services

Nuclear power plant spools through the RFSS JV are expected to contribute INR 300 Cr+ to annual revenue.

Market Expansion

Expansion into the Saudi Arabian market with a stainless-steel plant scheduled for completion by the end of fiscal 2027.

Market Share & Ranking

Ratnamani holds a market leadership position in the Indian stainless-steel tubes and pipes (SSTP) segment.

Strategic Alliances

Joint Ventures include Ratnamani Finow Spooling Solutions (with Techenergy AG) for nuclear projects and a JV with Saudi Electric Supply Company for regional expansion.

🌍 External Factors

Industry Trends

The industry is seeing a shift toward high-margin specialized segments like nuclear power and high-end seamless pipes. Ratnamani is positioning itself by expanding its nuclear spooling capacity and forward integration.

Competitive Landscape

Ratnamani is one of the largest players in the SSTP and carbon steel pipe segments in India, competing on quality and customization.

Competitive Moat

The moat is built on market leadership in SSTP, long-standing customer relationships, and the technical capability to manufacture high-end application products, which are difficult for competitors to replicate.

Macro Economic Sensitivity

Highly sensitive to the capex cycles of end-user industries such as oil and gas and power; a slowdown in these sectors directly impacts order book growth.

Consumer Behavior

Demand is driven by industrial shifts toward cleaner energy (nuclear) and infrastructure upgrades in the water and oil & gas sectors.

Geopolitical Risks

Trade barriers or regional instability in the Middle East could impact the Saudi Arabian JV and export revenue diversification.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to environmental pollution norms and manufacturing standards for high-pressure applications in the nuclear and oil & gas sectors.

Environmental Compliance

Ratnamani operates zero liquid discharge mechanisms at all three manufacturing facilities and has invested in 12 MW of solar power to reduce its carbon footprint.