Ratnamani Metals FY27 guidance: ₹4,800-5,000 crore

What the latest concall update signalled

Ratnamani Metals & Tubes (Ratnamani Metals) used its recent investor conference call to refresh investors on demand conditions, execution visibility, and FY27 expectations across the standalone business and its spooling and forging subsidiaries. Management pointed to a 23% year-on-year rise in consolidated sales, led by the Carbon Steel segment, even as domestic demand remained soft in pockets such as oil and gas. The update also reflected a cautious tone on near-term project execution because of delayed customer clearances and the effect of softer metal prices on reported revenues. At the same time, the company reiterated its focus on operational efficiency and product development, including hydrogen-compliant pipeline offerings.

FY27 standalone revenue guidance and key assumptions

In the guidance update shared from the call, the company indicated standalone revenue guidance for FY27 at ₹4,800 crore to ₹5,000 crore, assuming market normalization. The standalone business also maintained a margin outlook of 16% to 17% for FY27. This margin outlook was described as contingent on the Middle East conflict resolving within 3 to 5 months, highlighting a specific external risk factor that management is tracking. Separately, management commentary in the call also included an expectation to maintain EBITDA margins in the 16% to 18% band through operational efficiency.

Q2 and H1 performance markers discussed

Management shared operational markers for the standalone business during the call. For quarter two, the company reported revenue of ₹917 crore and EBITDA of ₹168 crore. For the half year, revenue was stated at ₹2,039 crore with EBITDA of about ₹335 crore. The company also acknowledged that a dip on the revenue front could be seen because of soft metal prices and delays in some projects and offtake at end customers.

Demand conditions: India muted, MENA steadier

The company said demand in oil and gas remains subdued in India, while conditions have been better in the MENA region. It also noted that dispatch clearances slowed in the last quarter due to seasonal factors and project delays, though management indicated that conditions were looking better and expected to improve. With steel prices described as soft and stable, the company said the industry has seen good demand in two water segments, industrial and exports. However, it added that domestic oil and gas projects and the CGD business were expected to remain muted for the near future.

Order book and spooling visibility

Ratnamani Metals said orders on hand as of 1 November were approximately ₹2,900 crore-plus. On the pipe spool business, management said the order backlog was about ₹650 crore with customer approvals in place. Execution was expected to start with some dispatches in the current quarter and some in the next quarter, with most dispatches during the next financial year. For the spooling business, the dispatch target for the year was around ₹150 crore, while the target for next year was indicated at ₹400 crore to ₹500 crore.

RFSS: FY27 growth target and margin range

For Ratnamani Finow Spooling Solutions (RFSS), the guidance update indicated expected growth of 20% to 25% in FY27. RFSS margins were expected to stabilize in the 20% to 25% range. The Middle East plant project was expected to be completed by March 2027, with a potential three-month spillover. In the call, management also linked spooling EBITDA margin expectations to the blended EBITDA of metals and tubes.

Ravi Technoforge: FY27 growth expectations

Ravi Technoforge (RTL) was guided to deliver 10% to 15% growth in FY27, with new customer segments targeted next year. In the call’s capex-linked capacity discussion, management indicated that with capex for RTL, revenue potential could rise to ₹700 crore to ₹750 crore. For FINO with additional capex under Phase 2, it suggested potential revenue capacity of ₹600 crore to ₹700 crore.

Capex plans and capacity expansion priorities

The guidance update called out routine capex of ₹150 crore to ₹200 crore. In the call, management also referenced incremental spending buckets, including a comment that for the balance it would be anywhere between ₹150 crore to ₹200 crore, and that “next year” all put together could be roughly ₹300 crore to ₹350 crore. Separately, research commentary included capex expectations of around ₹200 crore in FY25 and ₹320 crore in FY26. The company also spoke about expanding capacity in Odisha and Saudi Arabia and an aspiration to enhance production capabilities, with an aim mentioned for standalone revenues of ₹6,000 crore.

Analyst forecasts and price target revisions cited

The material also included third-party forecast metrics for Ratnamani Metals, including expectations of revenue and earnings growth of about 10.5% and 10.2% per annum, and forecast return on equity of 14.2% in three years. Another set of assumptions cited analysts modelling revenue growth of about 8.5% annually over the next three years, with profit margins increasing from 11.4% to 13.2% over three years. Earnings were referenced as expected to reach ₹860 crore by about September 2028, up from ₹580 crore, with earnings per share cited at ₹114.62.

Price targets referenced in the material varied and included revisions such as ₹3,247.40 to ₹3,107.40 and then to ₹3,001.50, with one narrative citing a downward revision of about ₹100 from ₹3,107 to ₹3,001. A separate brokerage-style update cited CMP ₹3,643 and a price target of ₹3,950, while another note cited CMP ₹2,456 (as on Nov 14, 2025) and a price target of ₹2,900.

Key numbers at a glance

Market impact: what investors are likely to track

The update puts the focus on execution and mix rather than a demand rebound in India’s oil and gas segment, which management expects to remain muted for the near term. The size and timing of spooling dispatches matter because management indicated most of the ₹650 crore backlog would shift into the next financial year. Margins are framed around operational efficiency and a 16%-18% EBITDA band, but the FY27 standalone outlook explicitly flags geopolitical timing risk linked to the Middle East. Investors may also track how US tariffs and increased competition, both acknowledged by management, affect export realisations and order conversion.

Conclusion

Ratnamani Metals’ latest guidance update sets FY27 standalone revenue at ₹4,800-5,000 crore with a 16%-17% margin outlook, while highlighting growth targets at RTL and RFSS and routine capex of ₹150-200 crore. Order book visibility of ₹2,900 crore-plus and a spooling backlog of about ₹650 crore provide near-term execution markers. The next key checkpoints are progress on spooling dispatches, commissioning and timelines for the Middle East plant targeted by March 2027, and management’s next round of quantified revenue and margin updates as project schedules firm up.