Ratnamani Metals and Tubes announced that Crisil Ratings has upgraded its rating on long-term bank facilities to 'Crisil AA+/Stable' from 'Crisil AA/Positive'. The agency has also reaffirmed its 'Crisil A1+' rating on short-term bank facilities. According to the latest rating rationale published on September 9, 2026, the upgrade reflects the strengthening of the company's business risk profile, driven by increasing revenue diversification through the faster-than-expected scale-up of subsidiaries, robust growth in order book providing healthy growth visibility, sustained market leadership in the niche stainless steel tubes and pipes (SSTP) segment, and strong operating efficiency. The upgrade is further supported by the company's strong financial risk profile characterized by conservative leverage, net cash position, strong liquidity and healthy cash accrual generation.
The company demonstrated resilient financial performance in fiscal 2026 despite challenging market conditions. Consolidated revenue declined to ₹4,498 crore from ₹5,186 crore in fiscal 2025, primarily attributed to subdued demand in the carbon steel segment following lower government spending and export disruptions caused by the West Asia conflict. However, profit after tax remained resilient at ₹534 crore compared to ₹542 crore in fiscal 2025, with PAT margin improving to 11.88% from 10.44% in the previous year. Net cash accrual remained strong at ₹568 crore (fiscal 2025: ₹551 crore) supported by treasury income in addition to healthy operating profits. The company maintained a conservative debt profile with adjusted debt to adjusted networth ratio of 0.07 times and interest coverage of 27.56 times as of March 31, 2026.
During fiscal 2026, consolidated operating margin improved to 17.01% from 15.90% in fiscal 2025, supported by a favourable product mix with increasing contribution from high-margin SSTP spooling businesses and healthy earnings from subsidiaries. The company maintains an installed capacity of 61,500 TPA for stainless steel tubes and pipes and 5,10,000 TPA for carbon steel pipes. More than 50% of the order book comprises high-value pipe spooling orders for nuclear power projects, which typically generate operating margins in excess of 30%. The increasing contribution from value-added, high-margin businesses is expected to strengthen consolidated profitability with operating margins sustaining at 17-18% over the medium term.
The company's diversification strategy through subsidiaries has shown strong results. Ravi Techno Forge Limited, a subsidiary engaged in precision forged bearing rings, reported revenue of ₹377 crore in fiscal 2026 and is expected to surpass ₹450 crore in fiscal 2027. Ratnamani Finow Spooling Solutions Private Limited (RFSS), a joint venture with Technoenergy AG, reported revenue of ₹391 crore in fiscal 2026 and is expected to achieve revenue of over ₹500 crore in fiscal 2027, supported by a large export order of USD 286 million (~₹2,700 crore). The company's aggregate pipe manufacturing capacity has increased to 7.5 lakh TPA as on June 30, 2026, and is expected to further rise to 8.1 lakh TPA by the end of fiscal 2027.**
The scrip fell 1.02% to currently trade at ₹2,833.30 on the BSE following the announcement. As reported by Business Standard, the ratings reflect the company's strengths in market leadership, diversified revenue streams, and healthy financial risk profile, though these are partially offset by large working capital requirements and susceptibility to slowdowns in end-user industries. Looking ahead, revenue is expected to grow at a healthy rate of 12-15% supported by the company's record-high order book of over ₹4,900 crore as on August 31, 2026, strong execution capabilities, stabilisation and ramp-up of the Odisha facility, recovery in export business, and continued scale-up of subsidiary operations.
