Rajasthan Tube Manufacturing Company Limited reported a 153.8% increase in net profit for FY26, reaching ₹123.69 lakh compared to ₹48.73 lakh in the previous year. The surge in bottom line occurred despite a significant contraction in top-line revenue, driven by aggressive inventory liquidation and debt reduction.

The company’s revenue from operations plummeted to ₹1,700.64 lakh in FY26 from ₹5,634.08 lakh in FY25, marking a decline of approximately 69.8%. This sharp drop reflects a strategic shift or operational pause, as evidenced by the complete depletion of inventory of traded goods, which stood at zero as on March 31, 2026, down from ₹874.97 lakh a year earlier.

Financial Performance Snapshot

The following table outlines the key financial metrics for the year ended March 31, 2026:

Balance Sheet Transformation

The company’s balance sheet underwent a dramatic restructuring during FY26. Short-term borrowings were reduced to zero from ₹648.52 lakh in FY25, while long-term borrowings also dropped to nil from ₹41.18 lakh. Consequently, the debt-equity ratio improved significantly, moving from 0.79 in FY25 to effectively zero in FY26.

Cash and cash equivalents rose to ₹32.76 lakh from ₹35.34 lakh, while bank balances other than cash equivalents increased to ₹6.67 lakh. The current ratio strengthened substantially to 5.89 from 1.56 in the previous year, indicating enhanced liquidity and solvency positions.

What the Numbers Show

A critical observation is the divergence between the collapse in revenue and the expansion in profitability. While revenue fell by nearly 70%, the net profit more than doubled. This was largely facilitated by the release of working capital; the change in inventory of traded goods contributed ₹874.97 lakh to operating cash flows, compared to ₹693.42 lakh in the prior year. Furthermore, finance costs dropped sharply to ₹18.12 lakh from ₹125.81 lakh, reflecting the successful repayment of substantial short-term debts. The reduction in employee benefits expenses to ₹15.35 lakh from ₹71.90 lakh also contributed to margin preservation despite lower sales volumes.

Audit Qualifications and Disputed Dues

The statutory auditors, Bakliwal & Co., issued a qualified opinion regarding disputed statutory dues. The Statement on Impact of Audit Qualifications highlights pending disputes related to VAT and GST demands totaling approximately ₹15.26 crore (aggregated from table values). Specifically, CGST demands and penalties amount to ₹14.54 crore, with an additional ₹7.50 lakh under the RVAT Act. The Board stated that these matters are subject to appellate proceedings and do not consider them finally determined liabilities.

Rajasthan Tube Manufacturing Co Ltd has concluded its board meeting held on September 7, 2026. The directors fixed the date for the company’s 40th Annual General Meeting (AGM) and approved key governance appointments.

The board scheduled the AGM for Wednesday, September 30, 2026, at 3:00 pm. The meeting will be held at the company’s facility in Jaipur. Shareholders on record as of September 30, 2026, will be eligible to vote. The register of members and share transfer books will remain closed from September 24 to September 30, 2026.

Governance Appointments

The board approved several administrative and compliance-related decisions during the session:

• Company Secretary Appointment: Ms Mahima Soni was appointed as Company Secretary and Key Managerial Personnel with effect from September 7, 2026. She replaces Mr Saurabh Priyadarshi, whose resignation from the role was accepted effective September 2, 2026.
• Director Resignation: The board accepted the resignation of Mr Mahendra Soni from the position of Additional Director, effective August 31, 2026.
• Secretarial Auditor: The board proposed the appointment of M/s Prachi Bansal & Co. as Secretarial Auditor for five financial years, commencing FY27 and ending FY31, subject to shareholder approval at the AGM.
• Scrutinizer: Ms Prachi Bansal was appointed as Scrutinizer for the 40th AGM.

Financial Reporting

The directors approved the Board’s Report, Annual Report, and accompanying documents for the financial year ended March 31, 2026. These documents will be circulated along with the notice for the 40th AGM. The cut-off date for determining eligibility for remote e-voting is set for September 23, 2026.