Rama Steel Tubes Limited, a manufacturer and exporter of ERW steel tubes, announced its financial results for the third quarter ended December 31, 2025. The company demonstrated mixed performance with revenue growth offset by margin pressures during the quarter.

Financial Performance Overview

The company's standalone financial results showed revenue growth alongside profitability challenges. Total income including other income reached ₹24,680.76 lakhs for Q3FY26 compared to ₹23,090.53 lakhs in Q3FY24.

Nine-Month Performance

For the nine months ended December 31, 2025, the company showed stronger year-over-year growth across key metrics. Revenue from operations increased significantly to ₹76,584.10 lakhs from ₹60,262.37 lakhs in the corresponding period of FY24.

Segment-wise Analysis

The company operates through two primary business segments: manufacturing of steel pipes and trading of building materials and steel products. Manufacturing segment revenue for Q3FY26 was ₹15,571.83 lakhs while trading segment contributed ₹8,830.51 lakhs to total revenue.

Major Corporate Development

During the quarter on December 11, 2025, Rama Steel Tubes executed a significant share purchase agreement for the joint acquisition of 100% stake in Automech Group Holding Limited, registered under the Abu Dhabi Global Market (ADGM).

Consolidated Results

On a consolidated basis, the company reported revenue from operations of ₹28,938.28 lakhs for Q3FY26 compared to ₹27,517.36 lakhs in Q3FY24. Consolidated net profit for the quarter was ₹178.08 lakhs versus ₹554.93 lakhs in the previous year.

Regulatory Compliance

The company noted its compliance with new labour codes consolidated by the Government of India on November 21, 2025. Management assessed that there would be no material impact on operations from these regulatory changes. The company also completed divestment of its stake in Onix IPP Private Limited during the quarter for ₹10,000.

The financial results were approved by the Board of Directors on February 14, 2026, and have been subject to limited review by statutory auditors who expressed an unqualified opinion.

Rama Steel Tubes Limited announced major corporate developments following its Board meeting held on January 20, 2026, including a key leadership appointment and significant equity share issuance for strategic acquisition purposes.

Leadership Expansion with Industry Veteran

The Board appointed Mr. Rakesh Chaturvedi (DIN: 01107166) as Additional Executive Director, effective January 20, 2026. The appointment follows the recommendation of the Nomination and Remuneration Committee and is subject to shareholder approval at the upcoming Extraordinary General Meeting.

Mr. Chaturvedi brings extensive steel industry expertise, having served as Executive Vice President (Domestic Marketing) and worked for 13 years at Bhushan Steel Limited. His progressive experience spans over four decades in the steel sector.

Major Equity Share Issuance for Strategic Acquisition

The Board approved a substantial equity share issuance to facilitate the acquisition of a strategic stake in Automech Group Holding Limited. The transaction involves issuing equity shares through preferential allotment to fund the company's expansion strategy.

The equity shares are priced at ₹10.25 each, including a premium of ₹9.25 per share, determined in accordance with SEBI (Issue of Capital and Disclosure Requirements) Regulations 2018. The entire allotment will go to M/s Jagjit Gouri, classified as a non-promoter entity.

Regulatory Compliance and Approval Process

Both major decisions require comprehensive regulatory approvals and shareholder consent. The Board has authorized executives and the Board sub-committee to finalize the Extraordinary General Meeting notice for seeking shareholder approval on these matters.

The equity share issuance is subject to:

• Shareholder approval through Extraordinary General Meeting
• Approval from applicable regulatory authorities
• Compliance with SEBI (ICDR) Regulations and other applicable laws

Meeting Details and Next Steps

The Board meeting commenced at 4:00 p.m. and concluded at 5:30 p.m. on January 20, 2026. The company will submit relevant details regarding the Extraordinary General Meeting to the exchanges separately in due course. All information has been made available on the company's website at www.ramasteel.com as per regulatory requirements under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.