Rama Steel Tubes Limited (RSTL), a leading manufacturer of structural steel tubes in India, has announced impressive sales volume figures for the second quarter and first half of the fiscal year 2025-26 (FY26). The company's performance demonstrates strong growth both on a quarterly and half-yearly basis, indicating a positive trend in demand for its products.

First Half FY26 Performance

For the first six months of FY26, Rama Steel Tubes reported a substantial increase in sales volume:

• Total sales volume: 112,961.24 tons
• Year-over-year growth: 28%

This significant growth compared to the same period in the previous fiscal year (88,287.22 tons in 6MFY25) underscores the company's expanding market presence and operational efficiency.

Q2 FY26 Highlights

The second quarter of FY26 saw Rama Steel Tubes achieve notable sales volume figures:

• Q2 FY26 sales volume: 62,742.97 tons
• Year-over-year growth: 23% (compared to 50,921.67 tons in Q2 FY25)
• Quarter-over-quarter growth: 25% (compared to 50,218.27 tons in Q1 FY26)

The quarter-on-quarter growth of 25% is particularly impressive, suggesting strong momentum in the company's sales performance.

Sales Volume Comparison

Company Overview

Rama Steel Tubes Limited, established in 1974, has positioned itself as a trusted name in the steel tubes and pipes market in India. The company manufactures a wide range of products, including MS ERW black pipes and G.I. Pipes, catering to both domestic and international markets.

RSTL's global footprint extends to more than 16 countries, with subsidiaries in the UAE and Nigeria. The company operates four state-of-the-art manufacturing facilities located in Sahibabad (U.P.), Khopoli (Maharashtra), and Anantpur (Andhra Pradesh).

The consistent growth in sales volume reflects RSTL's commitment to innovation, quality, and market expansion. As the company continues to strengthen its position in the steel tube industry, these results indicate a positive outlook for Rama Steel Tubes Limited in the coming quarters.

Rama Steel Tubes Limited has made a significant move in its capital structure by approving the allotment of 7,77,77,778 equity shares to two non-promoter entities. The Acquisition and Allotment Committee of the company's Board of Directors approved this decision on September 23, 2025.

Key Details of the Allotment

• Issue Price: The shares were allotted at Rs 11.25 per share on a preferential basis.
• Allottees:
  1. EBISU GLOBAL OPPORTUNITIES FUND LIMITED: Received 4,00,00,000 shares (2.44% stake)
  2. PINE OAK GLOBAL FUND: Received 3,77,77,778 shares (2.31% stake)

Regulatory Approvals and Capital Structure Impact

The allotment follows key regulatory approvals:

• Shareholder approval through an Extraordinary General Meeting (EGM) on June 18, 2025
• In-principle approval from both BSE Limited and National Stock Exchange of India Limited (NSE) dated September 08, 2025

As a result of this allotment, Rama Steel's paid-up equity share capital has increased to Rs 163,60,40,979, divided into 163,60,40,979 equity shares with a face value of Rs 1 each.

Financial Implications

• The total amount raised through this preferential issue is approximately Rs 87.50 crore.
• The new equity shares will rank pari-passu with the existing equity shares of the company.

Market Impact

This significant equity infusion from non-promoter entities could potentially strengthen Rama Steel's financial position and provide capital for growth initiatives. The preferential allotment has increased the company's equity base by about 4.75%, which may have implications for its equity structure and future financial strategies.

Investors and market watchers will likely keep a close eye on how Rama Steel utilizes this fresh capital infusion and its impact on the company's future performance and market position in the steel tubes manufacturing sector.