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    Ratnamani Metals

    RATNAMANI
    Capital Goods·18 May 2026
    Management Summary

    Ratnamani Metals reported a challenging Q4 FY26 with significant revenue declines on both standalone and consolidated bases, primarily due to muted demand and geopolitical issues impacting order booking and execution. Despite lower volumes, the company successfully maintained its EBITDA margins through operational efficiency and product mix. Subsidiaries Ravi Technoforge and RFSS showed strong growth, contributing positively to overall group profitability. The company remains debt-free and holds a healthy order book, though a lower dividend was declared.

    Highlights

    5

    • EBITDA margins maintained in percentage terms for both quarter and year, despite lower volumes, due to operational efficiency and improved product mix.

    • Order book as of May 1, 2026, stood at INR 2,160 crores, providing good revenue visibility.

    • Ravi Technoforge subsidiary achieved Q4 revenue of INR 105 crores (28% growth YoY) and improved EBITDA margins from 10% to 12%.

    • Ratnamani Finow Spooling Solutions (RFSS) achieved Q4 revenue of INR 72 crores (60% growth YoY) and completed its first full year of operations with INR 390 crores revenue.

    • Company continues to remain debt-free on a standalone basis.

    Concerns

    4

    • Standalone Q4 sales declined to INR 893 crores from INR 1,575 crores in Q4 FY25, primarily due to lower volumes in the Carbon Steel division.

    • Consolidated Q4 sales declined to INR 1,085 crores from INR 1,715 crores in Q4 FY25.

    • Order booking remained moderate during the quarter due to delayed project cycles and adverse geopolitical developments in the Middle East.

    • Board recommended a lower dividend of INR 10 per share due to challenging times and resource conservation.

    Key financials

    Metrics

    7

    Periods

    2

    Headline

    6
    • Standalone Q4 Sales
      ₹893 Cr
      YoY-43.3%
    • Standalone Q4 FY25 Sales
      ₹1,575 Cr
    • Consolidated Q4 Sales
      ₹1,085 Cr
      YoY-36.8%
    • Consolidated Q4 FY25 Sales
      ₹1,715 Cr
    • Consolidated FY26 Sales
      ₹4,494 Cr
      YoY-13.4%

    FY26

    1
    • Forex Impact
      ₹45 Cr

    Segment breakdown

    • Ravi Technoforge (Subsidiary)₹105 Cr59.3%
    • Ratnamani Finow Spooling Solutions (Subsidiary)₹72 Cr40.7%
    Donut· Share of Q4 Revenue

    Order Book

    high confidence

    Total Value

    ₹ 2,160 crores

    as of 2026-05-01

    quantified

    Composition

    Mix2 geographys
    • Export32.4%
    • Export (Total Order Book)32.2%

    Share of order book by geography · partial disclosure (64.6% of book)

    Pipeline

    deal pipeline tcv

    Total bidding pipeline for spooling business

    Cancellations / Deferrals

    • deferred:INR 100-150 crores worth of material could not be shipped last year due to conflict.

    "Order book provides good revenue visibility, but order booking remained moderate due to delayed project cycles and geopolitical issues. Inquiry levels are showing signs of improvement."

    Source:
    Prepared remarks

    Capital allocation

    4
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Debt

    Debt disclosed

    Dividend

    ₹10/share (final)

    Liquidity

    Cash ₹800 crores

    Close to INR 800 crores available as free cash with the company. Minor utilization of FD-OD facilities might be there, but company is 100% debt-free as far as regular bank limits are concerned.

    Guidance & targets

    6
    CategoryTargetPriority
    Volume
    Spool business growth
    20-25%
    		High
    Margin
    Spool business margin band
    20-25%
    		Medium
    Margin
    Standalone pipe business margin
    16% plus/minus 1%
    		High
    Revenue
    Standalone budget for the year
    INR 4,800-5,000 crores
    		High
    Revenue
    Ravi Technoforge growth
    10-15%
    		High
    Revenue
    Spooling business order conversion to revenue
    INR 480-500 crores
    		High

    Normalization of international situation and demand

    next month or so / within 3-6 months
    CurrentMuted demand, geopolitical conflicts, shipping issues
    TargetNormalization of demand and shipping, resolution of conflicts

    Why it matters

    Resolution of geopolitical issues and normalization of demand are critical for order booking and execution, especially for Middle East projects and overall market sentiment.

    No. With the current situation internationally, definitely, once this is over, we don't know today by when it will be over or by when things will be normal. But yes, definitely, not only in Middle East, but domestic as well as other parts of the world, we will see a push in carbon steel pipes as well as stainless-steel tubes and pipes because refineries, petrochemical plants, whatever is damaged, plus the new expansion once the oil is transported from, say, the point of originating to wherever it goes.

    How to verify

    order_book.management_commentary

    Risks & concerns

    7
    RiskSeverity

    Muted demand conditions and adverse geopolitical developments in the Middle East

    Impacted order booking, project execution, and overall market sentiment, leading to lower sales. — Management acknowledged

    high

    Delayed project cycles and moderate order booking

    Arising from the current global situation, affecting order inflows. — Management acknowledged

    medium

    Excess capacity and increasing competition in domestic stainless-steel pipe industry

    While Ratnamani focuses on high value-added extruded products, the overall competitive intensity is rising. — Analyst acknowledged

    medium

    Shipping and logistics challenges due to geopolitical conflicts

    Inability to ship orders to certain ports or high freight costs due to vessel unavailability/obnoxious charges. — Management acknowledged

    high

    Acceptance of piercing technology in power sector impacting SS margins

    New technology gaining acceptance could put pressure on margins, though management believes it may be temporary and some end-users still prefer extruded products. — Analyst acknowledged

    medium

    European Carbon Border Adjustment Mechanism (CBAM) and reduced export quotas

    Management believes short-term impact will not be major, as local manufacturing will adjust prices if demand outstrips supply. — Analyst downplayed

    medium

    Increased cost of gas supply

    Substantial increase in gas costs impacting both carbon steel and some stainless steel operations, though supply is not an issue. — Analyst acknowledged

    medium

    Q&A highlights

    7

    “So just to correct, give you the correct perspective. The stainless-steel volume in the last fiscal year actually went up, not down, but the prices were down. So, we were more or less flattish on the revenue. ... However, most of the capacity is for the pierced seamless products. So which market as it is, Ratnamani is not catering to. So, our still our focus remains on high value-added extruded products, where only one new player is supposed to come.”

    Analyst questioned the sustainability of SS margins given increasing competition and excess capacity, and where incremental cash flow would be deployed. Management clarified their focus on high value-added extruded products not directly impacted by new competition.

    asked by Sailesh Raja

    3 min read6 chapters

    Detailed Narrative

    01

    Q4 FY26 Performance Overview and Market Challenges

    Ratnamani Metals experienced a challenging Q4 FY26, with standalone sales declining to INR 893 crores from INR 1,575 crores in Q4 FY25. Consolidated sales also saw a significant drop to INR 1,085 crores from INR 1,715 crores in the previous year's corresponding quarter. The full year FY26 consolidated sales stood at INR 4,494 crores, down from INR 5,186 crores in FY25. This decline was primarily attributed to muted demand conditions, adverse geopolitical developments in the Middle East, and delayed project cycles, impacting order booking and execution.

    02

    Operational Resilience and Margin Maintenance

    Despite the lower volumes and challenging environment, Ratnamani demonstrated strong operational resilience. The company's continued focus on operational efficiency, cost optimization, and an improved product mix with higher value-added products ensured that EBITDA margins were maintained in percentage terms for both the quarter and the full year. Management indicated that 16-18% margins are a sustainable range for the standalone pipe business, assuming normalization of market conditions.

    03

    Subsidiary Growth Drivers

    Subsidiaries played a crucial role in supporting overall group profitability. Ravi Technoforge achieved a Q4 revenue of INR 105 crores, marking a 28% growth over the previous year, with full-year revenue reaching INR 377 crores (33% growth). Its EBITDA margins improved from 10% to 12% due to operational efficiencies. Ratnamani Finow Spooling Solutions (RFSS) also showed strong momentum, recording Q4 revenue of INR 72 crores (60% growth) and completing its first full year of operations with INR 390 crores in revenue. Both subsidiaries are key growth drivers, with expansion projects underway to further enhance capacity and market reach.

    04

    Order Book and Revenue Visibility

    As of May 1, 2026, the company's order book stood at INR 2,160 crores, with exports contributing INR 700 crores, providing good revenue visibility. The order book composition includes INR 531 crores from stainless steel and INR 1,631 crores from carbon steel. The spooling business alone has an order book of approximately INR 550 crores, with an expected conversion of INR 480-500 crores into revenue within the current year. The water segment (Jal Jeevan Mission) contributes INR 300-400 crores to the order book.

    05

    Capital Allocation and Shareholder Returns

    The company maintains a debt-free status on a standalone basis and has approximately INR 800 crores in free cash. Capex plans include ongoing debottlenecking in the stainless steel division, a new tube mill for welded products, and expansion projects at Ravi Technoforge. The Middle East plant project is progressing, with design and engineering complete and construction expected to finish by March 2027. The Board recommended a lower dividend of INR 10 per share, citing the challenging environment and the need for resource conservation.

    06

    Market Outlook and Future Strategy

    Despite current headwinds, management anticipates improved demand visibility, particularly in the oil and gas, refinery, petrochemical, and renewable energy segments, once geopolitical situations normalize. The company is focusing on expanding its market through new geographical areas and product applications, including new customer segments for Ravi Technoforge and leveraging its unique position as an approved supplier for nuclear power projects globally. The company aims for a standalone revenue of INR 4,800-5,000 crores for the year, assuming market normalization.

    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.