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Subsidiary strength cushions standalone drag

Ratnamani Metals and Tubes (RMT IN) reported revenue of ~INR 10.6bn, down ~19% YoY and ~11% QoQ, led by lower dispatch in the standalone business as offtake by Engineering, Procurement, and Construction (EPC ) contractors in the water segment remained slow, weighing on performance of the steel tubes and pipes segment. In contrast, subsidiaries continue to perform well. Ravi Technoforge (RTL) posted strong growth, with revenue up ~55% YoY and ~3% QoQ, while Ratnamani Finow Spooling Solutions (RFSS) reported a sharp ram p-up, with revenue rising to ~INR 1.96bn (vs INR 7mn in Q3FY25) and up ~77% QoQ. EBITDA stood at ~INR 2.0bn, flat YoY but down ~3% QoQ, below our estimate s of INR 2.3bn. We reiterate Buy with a lower TP of INR 3,249 based on 25x December 2027E P/E

Orderbook strengthens, visibility improves: As on 1 February 2026, orderbook stood at ~INR 21.4bn, reflecting a ~6% QoQ increase with nearly half of the orderbook from high -margin process pipe. Management says order inquiries have begun to improve, and it remains confident of gaining traction from the next quarter. Rising metal prices are likely to support revenue growth and this is set to flow through to profit. Further, Finow, with an orderbook of more than INR 6bn, is well positioned for strong inflows, aided by robust traction in the nuclear segment as Phase II of the project commences commercial production in the next 3 – 4 months. Give n the near monopoly in India that Fino w enjoys, we expect the company to have an order book that will give a multi -year revenue viability.

Strong execution by Finow lifts consolidated margin: Among RMT’s key subsidiaries, Ravi Technoforge (RTL) delivered a healthy performance, with net sales rising ~55% YoY and ~3% QoQ to ~INR 985mn. Ratnamani Finow Spooling Solutions (RFSS) reported a sharp ramp -up , with net sales increasing to ~INR 1.9bn from INR 7mn in Q3FY25 and growing by ~77% QoQ. Finow currently holds an orderbook of more than ~INR 6.0bn, scheduled for execution in the next 12 – 18 months, and it is undertaking a capacity expansion which is likely to be come operational by June 2026. At peak utilization, Finow’s top line is likely to scale up to ~INR 6.0– 6.5bn by FY 27E from ~INR 0.5bn in FY25

Reiterate Buy with a lower TP of INR 3,249: Rising metal prices should accelerate revenue growth and profitability growth. Recent incremental order inflows have been largely skewed toward high -margin process pipes, which should help sustain healthy standalone margin in the upcoming quarters. Additionally, we expect the gap between standalone and consolidated profitability to widen as subsidiaries ramp up operations. We expect Finow’s orderbook to scale up meaningfully, providing multi -year revenue visibility, supported by its near -monopoly position in India and strong traction in the nuclear segment. Accordingly, we reiterate Buy. We pare down our EBITDA estimates by ~1% each for FY26 & FY27 and ~2% for FY28 after factoring in weaker Q3 volume. We roll forward our valuation to December 2027E from September and lower our TP to INR 3,249 from INR 3,420 based on 25x (unchanged) December 2027E P/E. Key risks include a potential slowdown in demand from core end -user industries and lower -than - expected ramp -up in utilization. Rising metal prices should accelerate revenue growth and profitability growth. Recent incremental order inflows have been largely skewed toward high -margin process pipes, which should help sustain healthy standalone margin in the upcoming quarters. Additionally, we expect the gap between standalone and consolidated profitability to widen as subsidiaries ramp up operations. We expect Finow’s orderbook to scale up meaningfully, providing multi -year revenue visibility, supported by its near -monopoly position in India and strong traction in the nuclear segment. Accordingly, we reiterate Buy. We pare down our EBITDA estimates by ~1% each for FY26 & FY27 and ~2% for FY28 after factoring in weaker Q3 volume. We roll forward our valuation to December 2027E from September and lower our TP to INR 3,249 from INR 3,420 based on 25x (unchanged) December 2027E P/E. Key risks include a potential slowdown in demand from core end -user industries and lower -than - expected ramp -up in utilization.

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