Ratnamani Metals & Tubes: Resilient Growth Amidst Diversified Opportunities in Q2 FY26

Ratnamani Metals & Tubes Limited, a prominent player in the Indian metals and tubes sector, has reported a robust performance for the second quarter of fiscal year 2026. The company's consolidated sales surged by an impressive 23% year-on-year, reaching INR 1,191 crores. This significant growth was primarily propelled by strong contributions from its subsidiaries, Ravi Technoforge Private Limited (RTL) and Ratnamani Finow Spooling Solutions Private Limited (RFSS), alongside a higher overall revenue base. On a standalone basis, the company's sales grew by 5% to INR 940 crores, demonstrating a steady upward trajectory.

Despite facing a somewhat subdued domestic market and lower realizations due to prevailing market conditions, Ratnamani Metals & Tubes successfully maintained its profitability levels. This was achieved through a stringent focus on operational efficiency and disciplined cost control measures. The Carbon Steel segment emerged as a key driver of growth during the quarter, showcasing the company's ability to adapt and thrive in challenging environments. The management remains confident in sustaining volume growth across all product categories, projecting standalone EBITDA margins to remain within the 16% to 18% range, even if revenue growth appears modest due to commodity price corrections.

Strategic Milestones and Expansion Initiatives

The second quarter of FY26 was marked by several pivotal strategic achievements and ongoing expansion projects that underscore Ratnamani's commitment to long-term growth and market leadership. The company successfully commissioned Phase I of its spiral welded pipe plant in Odisha, with Phase II, a crucial coating plant, anticipated to be operational in the next quarter. This expansion is set to significantly enhance its manufacturing capabilities and product offerings.

A notable innovation includes pioneering the supply of hydrogen-compliant carbon steel welded pipes in India, with these advanced pipelines destined for installation in Europe. This initiative positions Ratnamani at the forefront of new energy applications, tapping into emerging global demands. Furthermore, the Kutch Plant received the prestigious API Monogram certification from the American Petroleum Institute, opening new avenues in the CRA line pipes segment, and was also honored with the CII National Award for Excellence in Energy Management 2025.

Subsidiary performance was particularly strong. Ravi Technoforge (RTL) recorded a 40% revenue growth, reaching INR 95.6 crores, with improved EBITDA margins. RTL is on track to deliver 15-20% annual growth in the coming years, supported by healthy order visibility and ongoing expansion projects. Ratnamani Finow Spooling Solutions (RFSS) continued its positive momentum, achieving INR 110 crores in revenue and reaffirming its INR 300+ crores annual revenue guidance, driven by strong order visibility for nuclear power spools.

To optimize its corporate structure and global reach, Ratnamani completed the process of making Ratnamani Trade EU AG in Switzerland a wholly-owned subsidiary. Additionally, the equity shareholding in Ravi Technoforge was restructured to 75.00% through a Rights Issue. A significant international development is the Saudi Arabia subsidiary obtaining commercial registration and commencing activities for setting up a stainless steel manufacturing facility, marking a strategic entry into the GCC market for cold-finished stainless steel seamless products.

Outlook and Future Trajectory

Looking ahead, Ratnamani Metals & Tubes is poised for sustained growth, backed by a robust order book, ongoing expansion projects, and a positive long-term industry outlook. The management anticipates consolidated revenues to reach INR 7,000 to INR 7,500 crores in the next two to three years, driven by full capacity utilization across its expanded facilities. Ravi Technoforge is projected to achieve revenues between INR 700 crores to INR 750 crores, while RFSS, with its expanded capacity, is expected to reach INR 600 crores to INR 650 crores annually at peak utilization from the next financial year, targeting a blended margin of 20-22% in the spooling business.

Despite short-term market challenges such as subdued domestic demand and potential international trade barriers, the company's strong fundamentals, diversified revenue streams, and proactive risk management strategies position it well for value creation. The strategic investments in new technologies and geographical expansions, particularly in the GCC region, are expected to yield significant returns and reinforce Ratnamani's competitive edge in the global market. The company's disciplined capital allocation and transparent disclosures further bolster investor confidence in its long-term vision and execution capabilities.

Conclusion: A Future Forged in Steel and Strategy

Ratnamani Metals & Tubes Limited's Q2 FY26 performance reflects a company that is not only resilient in the face of market headwinds but also strategically agile in seizing new opportunities. With significant milestones achieved in plant commissioning, product innovation, and international expansion, coupled with strong subsidiary performance and a clear growth roadmap, Ratnamani is forging a future of sustained growth and value creation for its stakeholders. The company's commitment to operational excellence and strategic diversification positions it as a compelling investment in the Indian industrial landscape.