Ratnaveer Precision Engineering Q2 FY27 results: net profit ₹24.07 crore

How did Ratnaveer Precision Engineering perform in Q2 FY27?

Ratnaveer Precision Engineering reported consolidated revenue of ₹387.24 crore for Q2 FY27, compared with ₹314.63 crore in Q1 FY27, a rise of 23.1%. EBITDA increased 13.5% to ₹36.53 crore from ₹32.18 crore, while the EBITDA margin was 9.4%, down from 10.2%. There was no exceptional item in either quarter.

Consolidated profit before tax rose 25.9% to ₹27.54 crore from ₹21.88 crore, and PAT increased 32.0% to ₹24.07 crore from ₹18.24 crore. The PAT margin was 6.2%, compared with 5.8%. Basic EPS was ₹3.24 against ₹10.36 in the previous quarter. On the standalone basis, revenue was ₹387.24 crore and PAT was ₹24.1 crore.

The quarter was the July–September 2026 period. The company’s filings also included standalone and consolidated results, while the investor presentation reported annualised EBITDA including other income and annualised ROE and ROCE for H1 FY27.

What do the balance sheet and cash flow show?

As of 30 September 2026, total assets were ₹1,642.45 crore, compared with ₹1,261.61 crore at 31 March 2026. Total equity was ₹1,082.28 crore against ₹669.24 crore, while borrowings were ₹264.33 crore against ₹334.98 crore. Cash stood at ₹248.93 crore, up from ₹91.31 crore.

Inventories were ₹349.94 crore as of 30 September 2026, compared with ₹289.44 crore at 31 March 2026. Trade receivables were ₹220.41 crore against ₹174.65 crore, and trade payables were ₹244.41 crore against ₹222.38 crore.

For H1 FY27, operating cash flow was negative ₹30.41 crore, investing cash flow was negative ₹77.4 crore and financing cash flow was positive ₹285.58 crore. Capital expenditure was ₹102.64 crore. A comparable year-earlier cash-flow period was not provided.

Which businesses drove the quarter?

What else did the company announce?

The board approved the standalone and consolidated unaudited financial results for the quarter and half year ended 30 September 2026, along with the limited-review report issued by Pankaj Shah & Associates. The board meeting began at 02:30 P.M. and concluded at 03:40 P.M. on 30 October 2026. The company also filed an investor presentation on 31 October 2026.

The same-day investor presentation said the copper clad laminate facility was 75% complete and that machinery was expected by mid-November 2026, followed by installation and trial runs. It also reported completion of the ₹329.99 crore rights issue, subscribed 1.11x overall, with 1,24,99,669 equity shares allotted at ₹264 per share. No dividend or appointment was stated in the same-day excerpts.

What did the auditors point out?

The auditors described their work as a limited review under SRE 2410 and stated that they had not performed an audit and did not express an audit opinion. They said that nothing had come to their attention that caused them to believe the accompanying statement had not disclosed required information or contained any material misstatement.

The report included an emphasis of matter concerning tax provisions and deferred tax. The auditors stated that these had been calculated and determined as estimated by management solely and that their conclusion on the statement was not modified in respect of these matters.

What did Ratnaveer Precision Engineering's management say?

Management said the FY27 PAT margin was expected to be around 6.25%. It projected base-business revenue of ₹1,315 crores for FY27 and targeted ₹1,800 crores by FY28. The company’s prior FY28 consolidated guidance was quoted as ₹2,500 crores revenue, 14% EBITDA margin and 11% PAT margin, although management also reiterated 10% consolidated PAT-margin guidance while looking toward 13%.

Management said CCL prices had increased by more than 300% and that revised guidance would be announced very soon, while the existing targets and margins were being retained. It maintained CCL guidance of ₹750 crores revenue, 20% EBITDA margin and 13% PAT margin across five lines, with each line expected to contribute ₹150 crores. The company also said there was no plan for an equity raise or new fundraise.

Management said the first CCL line was 75% complete, with a December–January trial and an 85% utilisation target by April 2027. All five CCL lines were scheduled for installation by April 2028, with planned investment of ₹338 crores. The call identified CCL price inflation, testing and synchronisation needs, operating-cash-flow pressure from ongoing capex, and the need for quality and delivery qualification as risks.

Initial CCL traction included 57 customer visits, orders from two firms and long-term discussions with seven, management said. The core fasteners business was expected to continue scaling, while working-capital funding had been secured through the rights issue and term loans. The transcript also recorded the CCL project’s planned ₹86 crore captive solar-plant investment.

How did Ratnaveer Precision Engineering shares react?

After the filing, the stock moved from its pre-results close to a 30-minute price gain of 2.3%. On the reaction day, it rose 5.3%, and by the next day's close it was up 5.6% from the pre-results close. The industry median was up 0.9% on the reaction day and 1.3% by the next day's close, so the stock's excess moves were 4.4 percentage points and 4.2 percentage points, respectively.

How did other Iron & Steel Products companies do?

A total of 27 Iron & Steel Products peers were compared for revenue growth, with a median revenue growth of 23.9%. The data did not provide a count of peers growing faster or slower than Ratnaveer Precision Engineering, so those two peer counts cannot be stated from the supplied information. Among the peers for which profit was compared, 21 reported higher profit.