Ratnamani Metals & Tubes Q1 FY27 Results (NSE: RATNAMANI)
Signal: Revenue declined
The read
The trajectory weakened after the prior three-quarter margin expansion: consolidated operating margin fell to about 13.0% from 15.3% YoY, revenue declined 15.6%, and PAT fell 15.8%; the key offset is the Pipe Spools turnaround, but standalone PAT fell 62.7% and the group benefited materially from subsidiaries and higher non-controlling-interest earnings.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹971.63 Cr | -15.6% | -10.4% |
| EBIT | ₹143.58 Cr | -23.1% | N/A |
| Net profit | ₹82.16 Cr | -37.7% | N/A |
| EPS | ₹11.72 | -37.7% | N/A |
| EBIT margin | 13.0% |
P&L walk
Consolidated revenue declined to ₹97,163.25 lakh (-15.6% YoY, -10.4% QoQ); gross margin expanded to 45.3% from 38.6% despite raw material cost rising to 76.9% of revenue from 68.2%, but operating margin fell to about 13.0% from 15.3% and PAT declined to ₹10,702.52 lakh (-15.8%).
Segments
Pipe Spools and Auxiliary Support Systems was the clear growth and profit driver: revenue rose 849.4% YoY to ₹11,963.37 lakh and segment result turned profitable at ₹6,098.17 lakh from a ₹453.73 lakh loss, while Steel Tubes and Pipes revenue fell 29.4% and its result fell 66.6% to ₹5,854.62 lakh.
Key positives
- Gross margin expanded to 45.3% from 38.6% YoY, although the filing does not disclose whether the improvement was due to pricing, input costs, or mix.
- Pipe Spools and Auxiliary Support Systems revenue rose 849.4% YoY to ₹11,963.37 lakh and segment result turned positive at ₹6,098.17 lakh from a ₹453.73 lakh loss.
- Finance costs declined 43.9% YoY to ₹617.15 lakh, reducing the drag below operating profit.
- Segment assets increased 10.4% YoY to ₹5,50,226.32 lakh while depreciation rose 14.4% to ₹3,621.27 lakh, a clean asset-base cross-check.
Key concerns
- Consolidated revenue declined 15.6% YoY to ₹97,163.25 lakh, with the core Steel Tubes and Pipes segment down 29.4% to ₹76,781.29 lakh.
- Operating margin fell about 237bps YoY to 13.0% after expanding in each of the previous three quarters in the prior results series.
- Standalone PAT fell 62.7% YoY to ₹5,406.24 lakh, showing that the consolidated result is increasingly dependent on subsidiaries and non-core group contributions.
- Employee cost intensity rose to 9.3% of consolidated revenue from 7.5% YoY and other expenses increased 10.5% despite lower revenue.
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