Ratnaveer Q2 FY27 PAT rises 56% as revenue grows 35.46%

Ratnaveer Precision Engineering Limited reported consolidated profit after tax of Rs 24.071 crore in Q2 FY27, up 55.97% year on year, as revenue rose 35.46% to Rs 387.237 crore. Earnings before interest, tax, depreciation and amortisation increased 38.85%, while interest cost rose 100.83% to Rs 7.786 crore.

What drove Ratnaveer’s Q2 FY27 profit rise?

Ratnaveer’s Q2 FY27 profit rise reflected higher revenue, higher other income and a lower reported tax expense. Revenue increased to Rs 387.237 crore from Rs 285.868 crore in Q2 FY26, while total income, including other income, rose 36.44% to Rs 392.841 crore. Total expenditure grew 36.16% to Rs 350.705 crore over the same period.

Other income increased 174.44% to Rs 5.604 crore from Rs 2.042 crore, and Ratnaveer’s reported EBITDA includes this income. EBITDA rose 38.85% to Rs 42.136 crore from Rs 30.346 crore. Profit before tax increased 37.02% to Rs 27.539 crore, while tax expense declined 25.66% to Rs 3.468 crore from Rs 4.665 crore; the presentation does not explain the tax movement.

How did Ratnaveer’s margins change in Q2 FY27?

Ratnaveer’s reported EBITDA margin rose 26 basis points to 10.88% in Q2 FY27 from 10.62% in Q2 FY26, while PAT margin rose 82 basis points to 6.22% from 5.40%. A basis point is one-hundredth of a percentage point. The larger movement in PAT margin coincided with the reported reduction in tax expense.

Depreciation increased 6.91% to Rs 6.811 crore in Q2 FY27 from Rs 6.371 crore a year earlier. This increase was below revenue growth of 35.46% and EBITDA growth of 38.85%. The consolidated Q2 FY27 financial information is unaudited and subject to limited review, according to Ratnaveer’s presentation.

How much did Ratnaveer’s interest cost increase?

Ratnaveer’s Q2 FY27 interest cost increased 100.83% year on year to Rs 7.786 crore from Rs 3.877 crore. The increase was faster than both the 35.46% rise in revenue and the 38.85% rise in EBITDA, creating a larger finance-cost charge below the operating-profit level.

For H1 FY27, interest cost rose 99.07% to Rs 14.508 crore from Rs 7.288 crore in H1 FY26. Despite that increase, first-half profit before tax rose 29.88% to Rs 49.415 crore and PAT increased 39.24% to Rs 42.308 crore. Ratnaveer does not state the reason for the higher interest expense.

How did Ratnaveer perform in the first half of FY27?

Ratnaveer reported H1 FY27 revenue of Rs 701.872 crore, up 27.50% from Rs 550.491 crore in H1 FY26, while EBITDA increased 35.48% to Rs 78.111 crore. PAT rose 39.24% to Rs 42.308 crore from Rs 30.386 crore, exceeding the rate of revenue growth over the six-month period.

H1 FY27 EBITDA margin widened 66 basis points to 11.13% from 10.47%, a larger increase than the 26-basis-point Q2 improvement. PAT margin rose 51 basis points to 6.03% from 5.52%. H1 total income increased 28.66% to Rs 711.267 crore, while total expenditure rose 27.87% to Rs 633.156 crore.

What is Ratnaveer’s capital and CCL project update?

Ratnaveer completed a Rs 329.99 crore rights issue that was subscribed 1.11 times, allotting 1,24,99,669 equity shares at Rs 264 each. The company reported net worth of Rs 1,082.282 crore, up 156.04%, in its Q2 FY27 key business update.

Ratnaveer said its copper clad laminate, or CCL, facility was 75% complete, with machinery expected by mid-November 2026 before installation and trial runs. Management’s plan covers Rs 338 crore of investment over three years under the Electronics Components Manufacturing Scheme, approved on March 30, 2026. The presentation identifies its CCL project economics, timelines, capacity and return estimates as management estimates rather than guidance.

Conclusion

Ratnaveer’s Q2 FY27 results combined a 35.46% increase in revenue with a 55.97% rise in PAT, supported by EBITDA growth, margin expansion and lower reported tax expense. However, interest cost more than doubled in the quarter and rose 99.07% in the first half, making finance costs a material counterpoint to the earnings growth.

The next disclosed milestone is the expected arrival of CCL machinery by mid-November 2026, followed by installation and trial runs at the facility that was 75% complete. Management’s Rs 338 crore, three-year investment plan and the subsequent execution of the CCL project remain the stated matters to watch.