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    Ratnamani Metals

    RATNAMANIGood
    Capital Goods·10 Nov 2025
    Management Summary

    Ratnamani reported a strong quarter on a consolidated basis, largely fueled by the momentum in its subsidiaries RTL and RFSS. While the domestic line pipe market remains subdued, the company is successfully pivoting toward international markets (GCC and Europe) and high-value segments like nuclear power. Significant capacity expansions in Orissa and Saudi Arabia are on track to support a major revenue scale-up over the next three years.

    Highlights

    7

    • Consolidated revenue grew 23% YoY to ₹1,191 crores, driven by strong subsidiary performance.

    • Standalone revenue stood at ₹940 crores, representing a modest 5% YoY increase due to softer input prices.

    • RTL subsidiary revenue surged 40% YoY to ₹95.6 crores with EBITDA margins improving to 13%.

    • RFSS (Finow) subsidiary reported ₹110 crores in quarterly revenue with a ₹500 crore order book for nuclear projects.

    • Standalone order book reached approximately ₹2,000-2,050 crores as of November 1, 2025.

    • Management set a consolidated revenue target of ₹7,000-7,500 crores within the next 2-3 years.

    • Standalone EBITDA margins are expected to be maintained in the 16% to 18% range.

    Concerns

    1

    • European Tariff/Quota Changes

    Key financials

    Single quarter

    04 metrics
    1. 01Consolidated Revenue₹1,191 Cr+23%YoY
    2. 02Standalone Revenue₹940 Cr+5%YoY
    3. 03Standalone Order Book₹2,050 Cr
    4. 04Carbon Steel Order Inflow₹750 Cr

    Segment breakdown

    • RTL (Ravi Technoforge)₹95.6 Cr46.5%
    • RFSS (Finow Spooling)₹110 Cr53.5%
    Donut· Share of Revenue

    Guidance & targets

    5
    CategoryTargetPriority
    Revenue
    Consolidated Revenue
    ₹7,000-7,500 crores
    		Medium
    Revenue
    RFSS Annual Revenue
    ₹300+ crores
    		High
    Revenue
    RTL Annual Revenue
    ₹360-380 crores
    		High
    Margin
    Standalone EBITDA Margin
    16-18%
    		High
    Capacity
    Saudi Project Trial Production
    Commencement
    		Medium

    Risks & concerns

    5
    RiskSeverity

    Subdued Domestic Demand

    Domestic line pipe tenders are currently underbidding and volume is not back to 2022-23 levels. — Management acknowledged

    medium

    European Tariff/Quota Changes

    Rumors of increased tariffs or halved quotas in Europe starting Jan 1st; company is stocking inventory in anticipation. — Management acknowledged

    high

    Working Capital Volatility

    Nuclear project spools require rigid inspections, leading to lumpy revenue recognition and inventory buildup. — Both acknowledged

    medium

    Areas of Evasion(2)

    • Explanation of the ₹200cr+ jump in Other Financial Assets
    • Specific volume breakup for seamless vs welded pipes

    Q&A highlights

    3

    “Domestic demand is still... not to the level where we can see a substantial jump in the order book. We will continue to book orders as we did.”

    Highlights the ongoing weakness in the domestic line pipe market, making the company more dependent on export wins.

    asked by Vikas Singh, ICICI Securities

    2 min read5 chapters

    Detailed Narrative

    01

    Subsidiary Momentum Drives Consolidated Growth

    Ratnamani's consolidated performance was significantly bolstered by its subsidiaries, which now contribute a substantial portion of the top line. RTL (Ravi Technoforge) saw revenue grow 40% YoY to ₹95.6 crores, with EBITDA margins expanding from 9% to 13% due to operational efficiencies. RFSS (Finow) contributed ₹110 crores this quarter, and management is confident in achieving over ₹300 crores for the full year, backed by a ₹500 crore order book dedicated to the nuclear power sector.

    02

    Domestic Headwinds vs. Export Opportunities

    The domestic market for line pipes remains subdued compared to the peaks of FY23, with management noting that current tenders are often underbid. However, the company is finding strong demand in the GCC region, particularly in Saudi Arabia and Abu Dhabi. To mitigate domestic weakness, Ratnamani is also pioneering new products like hydrogen-compliant carbon steel welded pipes for the European market, though it faces potential tariff risks in that region starting January 2026.

    03

    Aggressive Capacity Expansion Roadmap

    The company is in the midst of a major CAPEX cycle aimed at reaching ₹7,500 crores in consolidated revenue. Phase-I of the Orissa plant is commissioned, with Phase-II (coating plant) expected by March 2026. Furthermore, a new stainless-steel cold finishing line in Saudi Arabia is slated for trial production by December 2026. These projects, along with doubling capacity at RFSS to 4,000 tons, are the primary pillars for the company's 2-3 year growth outlook.

    04

    Nuclear Sector as a High-Margin Anchor

    The RFSS subsidiary is currently fully booked for nuclear power projects, which command higher margins. Management targets a blended EBITDA margin of 20-22% for this business as it scales. While the execution cycle is lumpy due to stringent nuclear authority inspections, the long-term visibility is strong, and the company plans to eventually diversify this capacity into thermal power and oil & gas spools.

    05

    Financial Discipline and Margin Guidance

    Despite softer input prices and a changing product mix that kept standalone revenue growth at 5%, Ratnamani maintained its standalone EBITDA margin guidance of 16-18%. The company saw a significant decline in working capital requirements this quarter, primarily because orders for water pipes (which have longer cycles) decreased. Management expects consolidated margins to settle in the mid-teens as new capacities stabilize.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.