Ratnaveer Precis Q2 FY27 Earnings Call — Analysis (NSE: RATNAVEER)
Ratnaveer delivered strong Q2FY27 performance with revenue up 35.5% YoY to ₹387 Cr and PAT surging 56.0% YoY to ₹24.07 Cr, alongside aggressive execution on its ₹338 Cr Copper Clad Laminate (CCL) greenfield project.
Result quality: stable — Results context unavailable. Management sentiment: optimistic.
The take
Q2FY27 Revenue from Operations ₹387 Cr ( +35.46% YoY ) . New guidance — FY27 base business revenue fy27 ₹1,315 Cr . New story: Greenfield CCL Electronics Diversification .
Results
Revenue reached ₹387 Cr (+35.46% YoY), EBITDA grew 38.85% YoY to ₹42.13 Cr with a 10.82% margin, and PAT rose 55.97% YoY to ₹24.07 Cr (6.22% margin).
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Revenue from Operations | ₹387 Cr | +35.46% | yoy · Q2FY27 |
| EBITDA | ₹42.13 Cr | +38.85% | yoy · Q2FY27 |
| EBITDA Margin | 10.82% | none · Q2FY27 | |
| PAT | ₹24.07 Cr | +55.97% | yoy · Q2FY27 |
| PAT Margin | 6.22% | none · Q2FY27 | |
| Net Worth Growth | 156% | yoy · Q2FY27 | |
| RoE | 9.66% | point_in_time · Q2FY27 · H1FY27 | |
| RoCE | 13.31% | point_in_time · Q2FY27 · H1FY27 |
Guidance
Management guided FY27 base business revenue to ₹1,315 Cr and targeted consolidated FY28 revenue of ₹2,500 Cr (including CCL), with upward guidance revisions promised shortly due to a >300% surge in CCL prices.
What management committed to
- [Ratnaveer Precision Engineering] is reaching the projected target of ₹1,315 crores for this year [FY27] in the base business. — ₹1,315 crores, FY27
- Up to FY28, [Ratnaveer Precision Engineering] is targeting to reach ₹1,800 crores as top line in the base business. — ₹1,800 crores, FY28
- This year [FY27] [Ratnaveer Precision Engineering] is spending CapEx of around ₹58 crores on Phase 2 for fasteners, tubes and pipes, and sheet metal components. — ₹58 crores, FY27
- The estimated trial run period [for CCL Line 1] is from December 20th to January 20th, and capacity utilisation can reach 85% by April 2027. — 85%, Q1FY28
- All five [CCL] lines will be installed by April 2028 (Line 2 in June 2027, Line 3 in September 2027, Line 4 in January 2028, Line 5 in April 2028). — 5 lines, Q1FY29
- For FY28, [Ratnaveer Precision Engineering] targets consolidated top line of ₹2,500 crore with EBITDA of 14% and PAT of 11% under baseline guidance. — ₹2,500 crore top line, EBITDA 14%, PAT 11%, FY28
- The PAT margin this year [FY27] is expected to be around 6.25%. — 6.25%, FY27
- There is no plan right now for any kind of equity raise or any new fundraise. — right now
Key themes
CCL project commissioning and base expansion
How the narrative shifted
- Greenfield CCL Electronics Diversification: Management is positioning the entry into Copper Clad Laminates (CCL) as a transformational first-mover opportunity in India's PCB and electronics value chain.
- CCL Global Pricing Surge and Margin Expansion: Global CCL shortages and a >300% price increase create massive unguided upside for realization and profitability on forthcoming domestic capacity.
- Steady Stainless Steel Base Business Execution: The core stainless steel fasteners, tubes, pipes, and finishing business continues to scale steadily toward ₹1,800 Cr by FY28 via ongoing Phase 2 capex.
- Capex Funding and Government Incentives: Capex is fully financed via completed equity raises, bank term loans, ECMS approvals, and eligible 50% capital subsidies, eliminating immediate equity dilution risk.
Operational commentary
- Civil work for the Copper Clad Laminate (CCL) project is ~75% complete; machinery is en route from China, expected by mid-November 2026 with installation taking ~45-50 days.
- Appointed a Chinese Chief Technical Officer with 30 years of CCL experience alongside a team of 22 Chinese installation engineers.
- Conducted 57 direct client visits to domestic PCB manufacturers, securing preliminary order confirmations and entering long-term supply contract negotiations for CCL.
- Executing Phase 2 capex of ₹58 Cr in the base stainless steel business (fasteners, tubes/pipes, clips, sheet metal) to scale base capacity towards ₹1,800 Cr top-line potential.
- Solar captive plant of ₹86 Cr planned as part of the overall investment pipeline.
Analyst Q&A
Q. What drove the gross margin moderation from 10.33% in Q1 to 9.44% in Q2, and what is the full-year PAT margin expectation?
Gross margins dipped slightly due to upfront costs booked for new products ahead of revenue generation, with full-year PAT margin expected around 6.25%.
Q. Will CCL pricing increases result in significantly higher EBITDA margins than the previously guided 20%?
Management confirmed margins will expand significantly and a single line can potentially generate ₹500 Cr of revenue, but withheld exact revised margin numbers pending an official upcoming guidance announcement.
Q. Are cash flows expected to turn positive in H2FY27 after working capital expansion in FY26?
Operating cash flows are currently constrained due to continuous capex loading, but will turn positive once capex stabilizes and CCL capacities become operational.
Research and educational content only. Not investment advice.