Ratnaveer Precision Engineering delivered robust financial performance in the first quarter of FY27, with consolidated revenue from operations rising 18.9% year-on-year to ₹314.64 crore. The Vadodara-based stainless steel manufacturer saw its profit after tax (PAT) grow by 22% to ₹18.24 crore, outpacing revenue growth due to effective cost management and operating leverage. This growth trajectory positions the company strongly ahead of the commercial launch of its Copper Clad Laminate (CCL) project, expected in November 2026, which aims to address the domestic supply-demand gap through import substitution.

The Board of Directors approved the unaudited financial results on July 24, 2026. The results reflect strong domestic demand, which contributed ₹304.68 crore to total revenue, while exports accounted for ₹9.96 crore. Total segmental assets stood at ₹1,321.13 crore. The company also received in-principle approvals from both NSE and BSE for a proposed rights issue of up to ₹330 crore, aimed at funding future expansion and strategic initiatives.

Financial Performance Highlights

Revenue growth was broad-based, with total income increasing 20.2% YoY to ₹318.43 crore. EBITDA expanded significantly by 31.7% to ₹35.98 crore, although the EBITDA margin contracted slightly to 11.43% from 14.32% in Q4FY26, primarily due to the mix of income components including other income. Profit before tax (PBT) rose 21.9% to ₹21.88 crore.

Note: EBITDA includes Other Income.

Strategic Developments and Outlook

Vijay R. Sanghavi, Managing Director, attributed the performance to "strong momentum across the business" and disciplined execution. He highlighted that the CCL project is approximately 60% complete and on track for commercial production in November 2026. The project aims to address the domestic supply-demand gap in Copper Clad Laminates through import substitution.

Key operational milestones include:

• Credit Rating Upgrade: Infomercials upgraded the long-term rating to IVR A- (Stable) and short-term rating to IVR A2+. Rated bank facilities were enhanced to ₹388.47 crore.
• Export Recognition: The company received the Star Performer – Large Enterprise Award at the 42nd EEPC India Export Awards.
• Policy Support: Received in-principle approval under the Gujarat Electronics Policy for the ₹472.34 crore CCL project.

What the Numbers Show

The divergence between revenue growth (18.9%) and EBITDA growth (31.7%) indicates significant operating leverage in the current quarter. While the absolute EBITDA margin appears lower than the previous quarter (11.43% vs 14.32%), this is largely influenced by the inclusion of other income in the EBITDA calculation as per the note. The core profitability metric, PAT margin, improved slightly year-on-year by 15 basis points to 5.80%, suggesting that cost controls are effectively translating top-line growth into bottom-line gains. The substantial increase in EPS to ₹10.36 from ₹2.97 in Q1FY26 further underscores the accretive nature of this growth period.

Ratnaveer Precision Engineering reported a 22% year-on-year increase in standalone net profit for Q1FY26, rising to ₹182.37 million from ₹149.46 million in the corresponding period last year. The growth was driven by a 19% surge in revenue from operations to ₹3,146.35 million, reflecting strong demand in its domestic segment. Consolidated results mirrored the standalone figures, with total revenue standing at ₹3,146.35 million and net profit at ₹182.37 million. The Board of Directors approved the unaudited financial results on July 24, 2026, following a limited review by statutory auditors Pankaj Shah & Associates.

Financial Performance Overview

The company’s top-line expansion outpaced cost inflation, leading to improved bottom-line metrics. Revenue from operations grew from ₹2,646.23 million in Q1FY25 to ₹3,146.35 million in Q1FY26. Other income also saw a significant jump to ₹37.91 million from ₹2.83 million in the previous year. Consequently, profit before tax increased to ₹218.76 million from ₹179.50 million.

*EBITDA calculated as Profit Before Tax + Interest + Depreciation + Tax.

Segment-wise Analysis

Domestic operations remained the primary growth engine, contributing ₹3,046.80 million to segment revenue, up from ₹2,488.84 million in Q1FY25. In contrast, revenue from outside India declined to ₹99.55 million from ₹154.39 million in the year-ago quarter. Segment profit before tax and interest for the domestic segment rose to ₹285.98 million from ₹213.61 million, highlighting robust operational efficiency in the home market.

What the Numbers Show

The divergence between domestic and international performance suggests a concentration of demand within India. While international revenues contracted by approximately 35%, domestic revenues expanded by over 22%. This shift indicates that Ratnaveer Precision Engineering is currently leveraging local market strength to offset global headwinds. Additionally, the rise in other income from ₹2.83 million to ₹37.91 million contributed significantly to the pre-tax profit jump, although core operational profits also improved substantially.

Auditor and Regulatory Compliance

The financial statements were prepared in accordance with Indian Accounting Standards (Ind AS) under Section 133 of the Companies Act, 2013. Pankaj Shah & Associates, the statutory auditors, issued a limited review report pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The audit committee recommended the results to the Board, which approved them in a meeting held on July 24, 2026. No material misstatements were identified during the review process.