Ratnamani Metals & Tubes Ltd's Q2 FY27 numbers came in soft, with revenue of Rs. 1,347.51 Cr (+13.08% YoY) and PAT growth of -25.44% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 06, 2026 |
|---|---|
| Revenue (Q2) | Rs. 1,347.51 Cr (+13.08% YoY) |
| PAT (Q2) | Rs. 101.56 Cr (-25.44% YoY) |
| EBITDA margin | 16.32% (-366 bps YoY) |
| EPS (Q2) | Rs. 14.49 (-25.42% YoY) |
Revenue rebounded (consolidated +13.08% YoY, standalone +17.54% YoY) but standalone EBITDA margin of 12.57% missed the guided 16% (±1%) band by ~243 bps and PAT to owners fell 25.44% YoY. Pipe Spools EBIT more than doubled at a 52.44% margin, but H1 CFO was negative Rs.(169.26) Cr on a Rs.369.89 Cr inventory build, and H2 requires +33.8% to +42.8% above Q2 run-rate to reach the Rs.4,800–5,000 Cr revenue guide.
| Driver | What happened | Verdict |
|---|---|---|
| "Standalone revenue directionally behind the guided run-rate for a second straight quarter" | Rs.1,104.40 Cr, +17.54% YoY — above base, but H1 = 38.4% of the Rs.4,800 Cr guide low end | Partially |
| "Flat-to-compressing vs Q1's 14.20% is the risk case" for margins | 12.57%, −163 bps QoQ | Played out |
| "Subsidiaries… again narrowing the consolidated gap" | NCI +60.33% YoY; Pipe Spools EBIT margin 52.44% | Played out |
| HRC at four-year highs → material-cost compression | Materials+inventory ratio improved YoY (58.07% vs 61.01%); compression came via other expenses (+73.68%) | Contradicted on the cost line |
| INR depreciation as export tailwind | Unrealized FX gain Rs.15.57 Cr H1 in the CF reconciliation; not separately disclosed | Not observable at precision |
| Held-back Middle East inventory "at risk of remaining unshipped" | Inventory built further (+Rs.369.89 Cr); not addressed in the filing | Open for the call |
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| What management said | Where | What happened | Verdict |
|---|---|---|---|
| Standalone EBITDA margin 16% (±1%) FY27 — "contingent on geopolitical stability" | Q4 FY26 earnings call (May 18, 2026) | 12.57% (H1: 13.22%) — below the 15% floor by ~243 bps | Missed |
| Standalone revenue Rs.4,800–5,000 Cr FY27 (~25% growth) | Q4 FY26 earnings call (May 18, 2026) | H1 Rs.1,845.18 Cr, −7.83% YoY; H2 needs Rs.2,954.8–3,154.8 Cr | Stretch |
| RFSS growth 20–25% FY27 | Q4 FY26 earnings call (May 18, 2026) | Proxy (segment): Pipe Spools revenue +42.2% YoY | On Track |
| RFSS margins 20–25% FY27 | Q4 FY26 earnings call (May 18, 2026) | Proxy: Pipe Spools EBIT margin 52.44% | On Track |
| RTL growth 10–15% FY27; >Rs.450 Cr FY27 | Q4 FY26 call (May 18, 2026); CRISIL rationale (Sep 10, 2026) | Proxy: Bearing Rings +3.15% YoY revenue, EBIT −25.44% — YTD | Missed |
| RFSS book conversion Rs.480–500 Cr in FY27 | Q4 FY26 earnings call (May 18, 2026) | Proxy: Pipe Spools H1 revenue Rs.276.59 Cr (57.6% of low end at half-year) | On Track |
| Consolidated Rs.7,500 Cr in 2–3 years; 16–18% margin "sustainable" | Q2 FY26 concall (Nov 10, 2025) | H1 Rs.2,319.14 Cr (−1.03% YoY); consolidated margin 16.32% is inside 16–18%, standalone 12.57% is outside | Too Early |
| Demand improvement "in another three months, six months" | Q4 FY26 concall (May 18, 2026) | Q2 revenue rebounded (consolidated +13.08% YoY, +38.68% QoQ; standalone +17.54%); guided window extends to Q3–Q4 FY27 — direction consistent | Partially |
| Margin strength from "better fixed-cost absorption and capacity utilization"; 16–18% sustainable | Q4 FY26 concall (May 18, 2026) | Consolidated margin 16.32% (in band) but standalone 12.57%, −592 bps YoY and below Q1's 14.20% | Contradicted on the standalone basis the guide is set on |
| Subsidiary resilience offsets core weakness | Q1 FY27 CEO message in the Aug 7, 2026 filing | NCI PAT +60.33% YoY; Pipe Spools EBIT +150.72%; subsidiary contribution 21.63% of owners' PAT | Confirmed |
Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.