Ratnaveer Q1 FY27: Core exports grow, while the CCL bet moves closer to commissioning

Ratnaveer Precision Engineering Ltd closed Q1 FY27 with higher scale in its core precision engineering business, even as it continued to fund and execute a new electronics materials project that management positions as a future growth engine. Consolidated revenue for the quarter stood at Rs 3,146.35 million, up 18.90 percent year on year from Rs 2,646.23 million. EBITDA increased faster than revenue, rising 31.74 percent year on year to Rs 359.75 million, while PAT grew 22.02 percent to Rs 182.37 million.

In crore terms, the quarter translates to revenue of about 314.64 crore, EBITDA of about 35.98 crore, and PAT of about 18.24 crore. The company reported an EBITDA margin of 11.43 percent and a PAT margin of 5.80 percent for Q1 FY27.

The presentation frames the company as an export-led precision manufacturing platform built over 25 plus years, with a recent strategic pivot toward Copper Clad Laminate (CCL) manufacturing for printed circuit boards. While the CCL business has not yet contributed to reported financials, it dominates the forward-looking section of the investor deck and sets the context for near-term capital allocation.

A multi-vertical stainless steel platform with export depth

Ratnaveer was established in 2000 in Vadodara, Gujarat, and the investor presentation highlights its positioning as the number one exporter of stainless-steel washers from India, supplying Fortune 500 OEMs. The operating model described is distribution-led and export oriented, with presence across 31 countries, 89 distribution partners, and 219 clients. Domestic presence is referenced across nine Indian states.

Operationally, the company states it runs five integrated facilities and employs over 800 people, with 46,668 metric tonnes processed in FY26. The product portfolio is organised into four existing verticals: Washer and Sheet Metal, Fasteners, Tubes and Pipes, and Finishing Line. The deck also introduces CCL as the fifth, future-facing vertical.

Within washers and sheet metal, Ratnaveer claims annual capacity of more than 1.5 billion units and over 3,300 SKUs. It also highlights in-house die and tooling capability and positions its washer facility as a large, dedicated operation.

In fasteners, the company lists more than 3,500 SKUs across metric and inch standards, including retaining rings, circlips and e-clips for automotive and industrial OEMs. The investor presentation states that nuts and bolts manufacturing commenced in FY25, integrating it with the tool room and quality inspection.

Tubes and pipes are presented as a technically capable vertical, spanning cold drawn, welded and U-bend variants and supported by electropolishing, passivation, hydro testing and eddy-current testing. The finishing line division focuses on surface finishes such as satin, hairline, mirror and scotch-bright, with stated output of about 200,000 pieces or 200 metric tonnes per month.

Across facilities, Ratnaveer highlights 90 percent renewable power and a high degree of forward and backward integration, alongside ISO certifications. It also cites an Infomerics rating upgrade to IVR A- stable and IVR A2+ for short term.

Q1 FY27 performance: growth is visible, but margins softened sequentially

The quarter’s growth is clear in the reported consolidated profit and loss table, with revenue up 18.90 percent year on year and PAT up 22.02 percent. EBITDA growth of 31.74 percent suggests operating leverage and a stronger earnings profile compared to last year’s base.

However, sequential performance shows margin pressure. EBITDA margin declined to 11.43 percent in Q1 FY27 from 14.32 percent in Q4 FY26, a contraction of 289 basis points. PAT margin also declined to 5.80 percent from 6.84 percent, a contraction of 104 basis points.

The presentation also notes that EBITDA includes other income, which matters when comparing operating performance across quarters. Other income fell to Rs 37.91 million in Q1 FY27 from Rs 73.31 million in Q4 FY26, though it rose materially versus Q1 FY26.

A lower interest cost sequentially helped earnings, with interest expense falling to Rs 67.22 million in Q1 FY27 from Rs 80.39 million in Q4 FY26. Depreciation increased to Rs 73.77 million from Rs 68.71 million, consistent with ongoing capital deployment.

Note: EBITDA includes other income as stated in the presentation.

CCL: management outlines the opportunity, policy support, and a phased ramp

The largest strategic update in the deck is Ratnaveer’s planned entry into Copper Clad Laminate, specifically FR-4 grade CCL. The company describes CCL as a high-performance substrate used in printed circuit boards, made from epoxy-resin-impregnated glass fabric laminated with copper foil. End markets cited include electronics, automotive, telecom, defence, and manufacturing-linked sectors.

On the demand side, Ratnaveer states current domestic demand is about Rs 5,000 crore, with over 90 percent imported. It also mentions demand running at more than 3,00,000 sheets per month. Market sizing in the deck includes an India PCB market estimate by 2032 at a 16.4 percent CAGR to Rs 1,76,790 crore, and an estimated Indian CCL market by 2031 of Rs 29,880 crore.

The project is positioned as aligned with policy tailwinds such as PLI, Make in India, Atmanirbhar Bharat, and the India Semiconductor Mission. Ratnaveer states it received ECMS approval on 30 March 2026 for a Rs 338 crore project over three years.

Execution detail is outlined in three layers.

First, the process flow is described as mixing, impregnation, treating, build-up, pressing, inspection, and dispatch. Second, the company states that line 1 machinery has been ordered and inspected at vendor works, with shipment and installation underway. Third, commissioning is stated to be on track for November 2026. The remaining four lines are planned to follow in phases.

The investor presentation also states that a technical collaboration will cover equipment, installation, operating procedures, training, and quality management. Support is committed through customer approvals for 18 to 24 months post commissioning, indicating a structured approach to qualification and ramp.

Ratnaveer provides a financial case for phase 1 and for a scaled case by FY31. Phase 1 economics are shown as revenue of Rs 108 crore, EBITDA of Rs 22 crore at 20 percent margin, and PAT of Rs 12 crore at 11 percent margin, with an ROI of 29 percent and capacity of 15,84,000 sheets per annum. The scaled case references revenue of Rs 750 crore plus, EBITDA of Rs 150 crore, PAT of Rs 83 crore, ROI of 29 percent, and capacity of 79,20,000 sheets per annum across five lines. Management also notes this would represent only about 1.8 percent of the Indian market.

The disclaimer is important context: the company explicitly states that project economics, capacities, timelines, and return estimates are management estimates and do not constitute guidance.

Funding and governance signals: rights issue approvals and rating upgrade

To support the investment cycle, Ratnaveer states it has received NSE and BSE in-principle approvals for a proposed rights issue of up to Rs 330 crore. The purpose stated is to support the CCL project and other growth initiatives.

The company also notes in-principle approval under the Gujarat Electronics Policy for a proposed Rs 472.34 crore Copper Clad Laminate project. The presentation does not provide additional detail on how this interacts with the Rs 338 crore ECMS project, but both approvals are highlighted as key updates.

On credit, Ratnaveer notes an upgrade by Infomerics, with long-term rating upgraded to IVR A- stable and short-term rating upgraded to IVR A2+. The deck also states rated bank facilities were enhanced to Rs 388.47 crore.

Separately, the company highlights recognition at the 42nd EEPC India Export Awards, where it received the Star Performer Large Enterprise award, positioned as an acknowledgement of engineering export performance.

Takeaways from the quarter

Q1 FY27 reinforces Ratnaveer’s core positioning as an export-led stainless steel precision engineering platform with a wide product footprint and global distribution reach. Year-on-year growth in revenue, EBITDA, and PAT suggests demand resilience and operating scale.

At the same time, the quarter shows that profitability can fluctuate, with sequential margin compression visible in EBITDA and PAT margins. As the company pushes into a capital-heavy CCL project with a targeted commissioning in November 2026, investors will likely track two execution variables closely: whether the commissioning timeline holds, and how the company balances margin stability in the core business while building the new vertical.

The presentation is clear on the strategic intent. The next clear checkpoint is delivery against the stated project milestones and transparency on commercial ramp once commissioning begins.