Ratnaveer Precision Engineering Reports Strong Q2 Results, Outlines Growth Plans

Ratnaveer Precision Engineering Limited , a leading manufacturer of stainless steel products, has announced robust financial results for the second quarter, along with growth plans for the coming years.

Q2 Financial Highlights

The company reported impressive year-on-year growth, with key financial metrics showing significant improvement:

Metric	Q2 Amount	YoY Growth
Revenue	Rs. 287.00 crores	~25%
EBITDA	Rs. 30.26 crores	-
PAT	Rs. 15.35 crores	-

Expansion and Future Outlook

Ratnaveer Precision has outlined a growth strategy, targeting revenue increases over the next few years:

Current Year: Rs. 1,100.00 crores (projected)
Next Year: Rs. 1,500.00 crores
Following Year: Rs. 1,800.00 crores

To support this growth, the company has completed a Rs. 48.00 crore CAPEX in February and plans an additional Rs. 68.00 crore CAPEX starting December, with completion targeted by July.

Diversified Product Portfolio

Ratnaveer operates across three main product categories:

Fasteners (nuts, bolts, washers)
Tubes and pipes
Sheet metal components

These products cater to various industries, including automotive, railway, marine, aviation, and defense sectors.

Value-Added Products and Margin Improvement

The company is focusing on increasing its share of value-added products:

Current contribution: 8% of revenue
Target: Rs. 200.00 crores out of Rs. 1,500.00 crores by next year

This shift towards higher-margin products is expected to improve the company's overall profitability. Ratnaveer aims to increase its EBITDA margin from the current 10.5% to 13.5% by next year.

Funding and Expansion Plans

To fuel its growth plans, Ratnaveer is considering the following:

QIP funding of up to Rs. 211.00 crores for working capital requirements
Exploring acquisition opportunities in the aviation and automobile sectors
Investing Rs. 45.00 crores in a new copper-clad laminates project, targeting Rs. 108.00 crores in revenue with 20% EBITDA margins

Management Commentary

Vijay Sanghavi, Managing Director of Ratnaveer Precision Engineering Limited, stated, "We are committed to our growth trajectory and are confident in achieving our targets. Our focus on value-added products and strategic expansions will drive our profitability and market position in the coming years."

The company's management expressed optimism about maintaining its growth momentum, citing strong demand from various sectors and its diversified product portfolio as key drivers.

As Ratnaveer Precision Engineering continues to execute its expansion plans and focus on higher-margin products, investors will be closely watching the company's ability to meet its growth targets in the competitive stainless steel industry.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+1.89%	+3.67%	+1.48%	+13.20%	-26.44%	+19.46%

Ratnaveer Precision Engineering Limited has confirmed full compliance with its stated objectives for the utilization of funds raised through a preference issue of warrants. The company's Audit Committee has verified that there were no deviations in the use of the approximately Rs 28.87 crore raised on September 5, 2024, for the quarter ended September 30, 2025.

Fund Allocation and Utilization

The funds, totaling Rs 28.87 crore received from investors, were allocated as follows:

Purpose	Amount (in crores)
Meeting working capital requirements/expansion of business	15.66
Business expansion	6.67
General corporate purposes	6.67

Compliance and Oversight

The fund utilization was in line with the objectives approved by shareholders at the Extraordinary General Meeting held on July 26, 2024. This adherence to the stated purposes demonstrates the company's commitment to transparency and responsible financial management.

Audit Committee Review

The Audit Committee of Ratnaveer Precision Engineering Limited has conducted a thorough review of the fund utilization. Their confirmation of compliance adds an additional layer of assurance to shareholders and stakeholders regarding the company's financial practices.

Implications for Investors

This report of full compliance in fund utilization may be viewed positively by investors, as it reflects:

Adherence to stated objectives
Transparent financial practices
Effective internal controls and governance

The company's careful management of these funds could potentially contribute to its growth and operational efficiency in the coming periods.

Conclusion

Ratnaveer Precision Engineering's report on fund utilization demonstrates its commitment to transparent and responsible financial management. As the company moves forward with its expansion and working capital plans, stakeholders will likely keep a close eye on how these investments translate into business growth and performance in the future quarters.