Ratnamani order book tops Rs 2,600 crore as demand improves

Ratnamani Metals & Tubes Limited said its order book exceeded Rs 2,600 crore in Q2 FY27, around 30% above the previous quarter, as thermal power, liquefied natural gas, or LNG, and US demand improved. Ratnamani said the recovery followed nine to 12 months of difficult demand conditions, although US order values include tariffs and freight costs.

How large is Ratnamani’s order book?

Ratnamani’s order book was above Rs 2,600 crore at the November 6, 2026 earnings call, versus the company’s historical range of Rs 2,000 crore to Rs 2,200 crore. Management said the book had risen by around 30% from the prior quarter as demand improved for stainless-steel products and carbon-steel line pipes.

Management also gave a current split of close to Rs 1,000 crore for stainless steel and close to Rs 1,700 crore for carbon steel, implying a combined figure near Rs 2,700 crore. The company did not reconcile that estimate with the opening statement of more than Rs 2,600 crore, but both disclosures indicate a larger order base than the historical Rs 2,000 crore to Rs 2,200 crore range.

What is driving Ratnamani’s order intake?

Ratnamani said thermal power projects, global oil and gas activity, LNG plants in the US and US data centres are the principal current demand drivers for stainless-steel products. In India, management also identified thermal power, oil and gas, chemicals, fertiliser and heat-exchanger applications as sources of orders in Q2 FY27.

Thermal-power demand may remain high for the balance of FY27 and for the next two to three years, according to management, because government and private projects are being announced. Ratnamani also cited specialised product progress during the quarter, including approval for stainless-steel seamless U-tubes used in fertiliser carbamate condensers and nuclear orders for high-pressure heater cold-finished tubes and hairpin heat-exchanger seamless tubes.

Carbon steel is also improving, though management said stainless steel has contributed more to the order-book increase. Ratnamani said it is bidding for more than Rs 5,000 crore of carbon-steel line-pipe and in-plant-piping opportunities, including oil-and-gas projects and early Middle East activity. That figure is a bidding pipeline rather than secured orders, and management said larger Middle East awards are more likely around the middle or end of the following year.

How do US tariffs affect Ratnamani’s reported order book?

Ratnamani estimated that the US accounts for roughly 20% of its current order book, with export contracts generally delivered-duty-paid, or DDP. These orders include a 50% tariff, ocean freight, local transportation and customs-clearance costs, meaning their reported order value is not solely the value of pipes supplied.

Management said the tariff had increased from 25% to 50% and that the additional amount is built into relevant US order values. It illustrated the accounting effect with a hypothetical free-on-board, or FOB, product value of Rs 100 crore becoming a Rs 160 crore selling price once Rs 60 crore of tariff and delivery costs is included. The example means headline order-book and revenue changes do not correspond directly to underlying product volumes.

Management said per-ton profitability on US supplies is similar to historical levels after removing tariff and freight effects. It added that domestic sales would offer better margins if domestic demand were available because 50% to 60% of a US DDP selling price can be costs included in revenue. Management expects freight and tariff-related costs to remain elevated for the next six to 12 months as the US remains the market with the highest demand.

Has Ratnamani’s water-pipe demand recovered?

Ratnamani is not seeing a meaningful recovery in water-pipe demand. Management said some demand is visible, but there has been no real improvement, and later described conditions as broadly unchanged from three to four quarters earlier.

Management said funding availability has become a challenge for water projects and did not provide a timetable for recovery. It noted that Middle East desalination plants can use stainless steel and titanium piping within the plant, while carbon-steel lines can be used to distribute water after desalination, but it disclosed no order target for this potential demand source.

Global logistics also remains an operating constraint for Ratnamani’s existing orders. Management said ocean freight, local transportation, gas and oil-related costs have increased amid geopolitical uncertainty, while prices on orders already secured are generally fixed. The company is seeking to build higher costs into future contracts, but said recovery of detention and demurrage costs remains under discussion with customers.

What does Ratnamani expect for FY27 revenue and capacity?

Ratnamani retained FY27 standalone revenue guidance of Rs 4,000 crore to Rs 4,200 crore and consolidated revenue guidance of Rs 5,000 crore to Rs 5,200 crore. Management expects second-half utilisation to improve, although it said logistics costs would continue to affect profitability and that the third quarter could remain around current margin levels.

For Q2 FY27, Ratnamani reported consolidated revenue of Rs 1,348 crore, up 13% from Rs 1,192 crore a year earlier, and earnings before interest, tax, depreciation and amortisation, or EBITDA, of Rs 220 crore at a 16.3% margin. Standalone revenue rose 18% to Rs 1,104 crore, while standalone EBITDA was Rs 139 crore at a 12.6% margin, showing that higher sales coincided with freight and forwarding cost pressure.

Ratnamani commissioned Spiral Mill-3, with capacity to produce pipes up to 18 metres long and annual output of 1 lakh tonnes, as well as an Odisha external three-layer polyethylene coating plant with annual capacity of 25 lakh square metres. Management said higher utilisation could improve margins next year and described a longer-run EBITDA margin range of 15% to 18%, subject to product mix and external costs.

Conclusion

Ratnamani’s order book above Rs 2,600 crore indicates improving demand in stainless steel and a developing recovery in carbon steel, led by thermal power, LNG, oil and gas, data-centre and specialised-tube applications. However, roughly 20% of the book is linked to US DDP business that includes a 50% tariff and transport costs, while water demand has yet to improve materially.

The next disclosed markers are progress toward FY27 standalone revenue guidance of Rs 4,000 crore to Rs 4,200 crore, the expected improvement in second-half utilisation, and the persistence of freight-related costs over the next six to 12 months. Management also identified more than Rs 5,000 crore of carbon-steel bids, with larger Middle East awards potentially moving closer to finalisation around the middle or end of the following year.