Ratnamani Metals & Tubes Ltd

Ratnamani Metals & Tubes Ltd – Trading Window Closure from Oct 1, 2026 until the conclusion of the 48 hours after the announcement of the Unaudited Financial Results (Standalone and Consolidated) for Q2 and half year ending Sep 30, 2026.

Instruments & Ratings

• Total bank loan facilities rated: Rs 2,200 crore.
• Long-term rating: Crisil AA+/Stable (upgraded from AA/Positive).
• Short-term rating: Crisil A1+ (reaffirmed).

Rating Action

• Action: Long-term upgrade and short-term reaffirmation by Crisil Ratings.

Rationale & Financials

• Diversified revenue via subsidiaries strengthens business risk profile.
• Robust order book supports strong growth visibility; SSTP leadership continues.
• Consolidated EBITDA margin rose to 17.01% in FY2026; PAT Rs 534 crore.
• Revenue declined to Rs 4,498 crore; net cash accrual Rs 568 crore.
• Net debt is low; gearing 0.07x; net cash position.
• Liquidity strong with Rs 988 crore cash; minimal fund-based usage.
• Capex plan of Rs 1,200 crore funded largely by accruals; leverage to stay comfortable.
• Nuclear spooling orders constitute over 50% of the book; margins >30%.
• Outlook: Stable; rating supported by market position and diversification.

Outlook & Sensitivities

• Outlook: Stable.
• Upward factors: sustained revenue growth, EBITDA 18-20% at consolidated level.
• Downward factors: EBITDA below 15% long-term; liquidity strain from high working capital.

Material Changes vs Last Rating

• Long-term rating upgraded from Crisil AA/Positive to Crisil AA+/Stable.

ESG rating update

• CRISIL ESG Rating assigns 59 (Adequate) to Ratnamani Metals & Tubes, Aug 28, 2026.

Order details

• Export orders from International Customers to Ratnamani Finow Spooling Solutions Limited totaling USD 286 million over 2–3 years.

AGM Details

• Held via VC/OAVM with no physical attendance.
• Meeting began at the scheduled start time.

Key Resolutions

• Ordinary resolution to adopt standalone and consolidated financial statements.
• Ordinary resolution to declare dividend per share as recommended.
• Ordinary resolution to re-appoint two directors, retiring by rotation.
• Ordinary resolution to ratify cost auditor remuneration for the financial year.

Voting Results

• Financial statements adoption: passed with majority support.
• Dividend declaration: passed with majority support.
• Director re-appointments: passed with minimal opposition.
• Cost auditor remuneration: passed with majority support.

Dividend

• Dividend per share approved as recommended by the Board.

Directors & Auditors

• Directors by rotation re-appointments approved.
• Cost auditor remuneration ratified; Board authorized to implement.

AGM details

• AGM held on 18 August 2026 via VC/OAVM.
• Time: 10:30 a.m. IST.
• Record date for voting: 11 August 2026.
• Shareholders on record: 40,278.

Resolutions and outcomes

• Resolution 1: Adoption of standalone and consolidated financial statements; passed.
• Resolution 2: Dividend of Rs 10 per equity share; passed.
• Resolution 3: Re-appointment of Shanti M. Sanghvi; passed.
• Resolution 4: Re-appointment of Manoj Prakash Sanghvi; passed.
• Resolution 5: Ratification of remuneration to Cost Auditors for FY2027; passed.

Dividend

• Dividend of Rs 10 per equity share approved.

Directors

• Re-appointment of Shanti M. Sanghvi as Director (retiring by rotation).
• Re-appointment of Manoj Prakash Sanghvi as Director (retiring by rotation).

Auditors

• Remuneration of Cost Auditors ratified for FY2027.

AGM Details

• AGM held on August 18, 2026 via VC/OAVM.
• Commenced at 10:30 a.m. IST and concluded at 11:08 a.m. IST.
• Record date for entitlement: August 11, 2026.

Key Resolutions

• Adoption of standalone and consolidated financial statements (Ordinary Resolution).
• Dividend of Rs 10 per equity share (Ordinary).
• Re-appointment of Shanti M. Sanghvi as Director on rotation (Ordinary).
• Re-appointment of Manoj Prakash Sanghvi as Director on rotation (Ordinary).
• Ratification of remuneration for Cost Auditors for FY2027 (Ordinary).

Dividend

• Dividend declared: Rs 10 per equity share for FY ended 2026.

Director Matters

• Chairman recused from items 3 and 4; Independent Director chaired those items.

Auditors

• Remuneration for Cost Auditors ratified for FY 2027.

Voting & Results

• Combined voting results to be announced on the company website and NSDL.

Business Overview

• Core business: stainless and carbon steel pipes and tubes; multi-location plants in Gujarat and Odisha.
• Global footprint: serves 20+ industries across 28+ countries; exports as growth channel.
• Growth through JVs and acquisitions: RTL 75%, RFSS 51%, Ratnamani Middle East 75% stakes.
• Key expansions: Odisha coating facility and Kutch HSAW facility completed.
• RTL Pipaliya expansion: 20% capacity; 9 MW solar power installed.
• Credit upgrade: RTL long-term facilities upgraded to CARE A+; standalone debt-free.
• Green energy usage: 50% of RTL energy from solar; improves sustainability profile.
• Exports growth; diversified, resilient business model supporting long-term growth.

Operational Highlights

• Q1 FY27 standalone revenue ₹740.78 cr; consolidated ₹971.63 cr.
• Standalone EBITDA ₹105.18 cr; margin 14.2%; consolidated EBITDA ₹179.79 cr; margin 18.5%.
• Standalone PBT ₹73.46 cr; PAT ₹54.06 cr; consolidated PBT ₹137.41 cr; PAT ₹107.03 cr.
• Standalone order book at ₹2,000+ cr.
• RFSS capacity expansion to 4,000 MT/year; ready by Q3; commercial in Q4.
• Completed Odisha coating facility and Kutch HSAW facility; expands production capabilities.

Financial Performance

• Consolidated revenue FY26 ₹4,493.96 cr; PAT ₹534.47 cr; PBT ₹706.34 cr.
• Standalone revenue FY26 ₹3,689.30 cr; PAT ₹433.96 cr; PBT ₹583.13 cr.
• Total income: consolidated ₹4,615.91 cr; standalone ₹3,814.39 cr.
• Net cash flow FY26: consolidated −₹152.41 cr; standalone −₹154.70 cr.
• Total assets: consolidated ₹5,387.60 cr; standalone ₹4,632.02 cr.
• Total equity: consolidated ₹4,207.72 cr; standalone ₹4,080.68 cr.

Capital Structure & Liquidity

• RTL credit rating upgraded to CARE A+ for long-term facilities.
• Standalone remains debt-free; limited group leverage on a standalone basis.
• Cash and cash equivalents: ₹73.90 cr consolidated; ₹65.54 cr standalone.

Strategic Priorities & Outlook

• Exports growth remains encouraging; enquiry levels improving; strong long-term growth prospects.
• RFSS expansion to 4,000 MT/year; ready by Q3; commercial production in Q4.
• RTL Pipaliya expansion 20%; 9 MW solar plant; 50% of RTL energy from green energy.
• Coating (Odisha) and HSAW (Kutch) facilities strengthen future production capacity.
• Diversified business model and subsidiaries position the group for global expansion.

Risks & Mitigation

• Headwinds from lower government infrastructure spend; Middle East geopolitical developments.
• Mitigation: diversified subsidiaries, expansion, robust export growth, and strong order pipeline.

Governance & Leadership

• Board comprises nine directors; Chairman & MD Prakash M. Sanghvi leads the group.
• Key executives: Manoj P. Sanghvi (CEO); Vimal Katta (CFO).
• Strategic stakes: RTL 75%; RFSS 51%; Ratnamani Middle East 75% stakes.
• Ratnamani Inc (USA) and Ratnamani Middle East Pipes Trading LLC OPC established; EU AG in Switzerland.
• ESG: RTL’s rating upgrade underscores governance and sustainability focus.