CRISIL Ratings has upgraded Ratnamani Metals and Tubes Limited’s long-term bank facilities rating to ‘Crisil AA+/Stable’ from ‘Crisil AA/Positive’. The company’s short-term rating has been reaffirmed at ‘Crisil A1+’. The upgrade reflects a stronger business risk profile driven by revenue diversification, robust order book, market leadership, and enhanced operating efficiency, alongside a robust financial risk profile.
CRISIL Upgrades Ratnamani Metals and Tubes’ Long-Term Rating
CRISIL Ratings announced on September 9, 2026, that it has upgraded the rating on the long-term bank facilities of Ratnamani Metals and Tubes Limited (Ratnamani) to ‘Crisil AA+/Stable’. This marks an upgrade from the previous rating of ‘Crisil AA/Positive’. Concurrently, the company’s short-term bank facilities have been reaffirmed at ‘Crisil A1+’. The total bank loan facilities rated amount to Rs. 2,200 Crore.
Key Drivers for Upgrade
The upgrade is attributed to several strengthening factors in Ratnamani’s business profile. These include increasing revenue diversification through the successful scale-up of its subsidiaries, a robust growth in its order book providing healthy forward visibility, sustained market leadership in the niche stainless steel tubes and pipes (SSTP) segment, and strong operating efficiency. Furthermore, the company’s financial risk profile remains robust, characterized by conservative leverage, a net cash position, strong liquidity, and healthy cash accrual generation. During fiscal 2026, consolidated operating margin improved to 17.01%, and net cash accrual was strong at Rs 568 crore.
Future Outlook
Looking ahead, revenue is projected to grow at a healthy rate of 12-15%, supported by a record-high order book of over Rs 4,900 crore as of August 31, 2026. The company’s strong execution capabilities, stabilization of its Odisha facility, recovery in export business, and continued subsidiary growth are expected to contribute to this expansion. The operating margin is anticipated to sustain at a healthy 17–18% over the medium term. The company’s financial risk profile is expected to remain strong, with planned capital expenditure being funded primarily through cash accruals.
Source: BSE
