Rama Steel Tubes Limited (RAMASTEEL)
₹3.93 -1.50% last close, 16 Oct
Latest quarterly results (Q4 FY26)
In its latest reported quarter, Q4 FY26, Rama Steel's revenue was ₹246 Cr (-16.0% year on year, +0.9% on the previous quarter), and net profit ₹3.8 Cr (-43.2% year on year); the operating margin was 1.7%.
| Q4 FY26 (₹ Cr) | Value | YoY vs Q4 FY25 | QoQ |
|---|---|---|---|
| Revenue | ₹246 | -16.0% | +0.9% |
| Operating profit | ₹4.3 | -61.2% | +13.3% |
| Net profit | ₹3.8 | -43.2% | +112.9% |
| EPS (₹) | 0.03 | -25.0% | +200.0% |
| Operating margin | 1.7% | — | — |
RAMASTEEL exchange data
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📢 Recent Corporate Announcements
Rama Steel Tubes Limited has submitted the Scrutinizer's Report and voting results for its 52nd Annual General Meeting held on September 30, 2026. All four ordinary and special resolutions were approved overwhelmingly, each receiving over 99.98% votes in favor. The business items included the adoption of FY26 financial statements, the reappointment of director Rakesh Chaturvedi, the appointment of Anju Kumari as an Independent Woman Director, and the ratification of cost auditor remuneration. Total votes polled stood at 53.15 crore shares, representing approximately 32.49% of outstanding voting shares.
- All 4 AGM resolutions passed with over 99.98% approval rates
- Adoption of FY26 audited accounts approved with 99.99% votes in favor (53,14,78,239 shares)
- Appointment of Ms. Anju Kumari as Independent Woman Director approved with 99.99% favor
- Total voting participation stood at 53,15,10,461 shares, representing 32.49% of total shares
Rama Steel Tubes has issued an EGM notice to approve a preferential allotment of up to 53.28 crore equity shares at ₹5 each, totaling ₹266.4 crore. The issue includes 20 crore shares for cash (₹100 crore) to two non-promoters and 33.28 crore shares (₹166.4 crore) for consideration other than cash to Mr. Jagjit Gouri. The company is also seeking approval to increase its authorized share capital to ₹250 crore. The total preferential issue represents roughly 41.3% of the company's current market cap of ₹645 crore, leading to substantial equity dilution.
- Preferential allotment of up to 53,28,00,000 equity shares at an issue price of ₹5 per share (face value ₹1 plus ₹4 premium)
- Total transaction size of ₹266.4 crore, comprising ₹100 crore in cash and ₹166.4 crore for non-cash consideration
- Authorised share capital alteration proposed to be increased to ₹250,00,00,000 divided into 250,00,00,000 equity shares of ₹1 each
- E-voting begins on October 18, 2026, and the Extraordinary General Meeting is scheduled for October 21, 2026
Rama Steel Tubes has approved a major preferential issue and warrant issuance alongside amending its Share Purchase Agreement to acquire Automech Group Holding Limited. The board approved issuing 28 crore shares for cash (₹140 crore), 33.28 crore shares via swap (₹166.4 crore) for a 21.62% stake in Automech, and 8 crore convertible warrants (₹40 crore) to promoters, all priced at ₹5 per share. Total proposed issuance amounts to ₹346.4 crore, which represents ~53% of its current market cap of ₹654 crore. The transactions will result in substantial equity dilution subject to upcoming shareholder approval at an Extraordinary General Meeting.
- Approved issuance of up to 28 crore equity shares at ₹5 each for cash, raising ₹140 crore
- Approved issuance of 33.28 crore equity shares at ₹5 each (₹166.4 crore) to Mr. Jagjit Gouri via share swap for 21.62% of Automech Group
- Approved 8 crore convertible warrants at ₹5 each to promoter Naresh Kumar Bansal, raising ₹40 crore within 18 months
- Authorised share capital increased from ₹200 crore to ₹250 crore
- Seller Jagjit Gouri will hold 14.29% post-issue shareholding following the swap transaction
Rama Steel Tubes has approved a major preferential issue and warrant issuance alongside amending its Share Purchase Agreement to acquire Automech Group Holding Limited. The board approved issuing 28 crore shares for cash (₹140 crore), 33.28 crore shares via swap (₹166.4 crore) for a 21.62% stake in Automech, and 8 crore convertible warrants (₹40 crore) to promoters, all priced at ₹5 per share. Total proposed issuance amounts to ₹346.4 crore, which represents ~53% of its current market cap of ₹654 crore. The transactions will result in substantial equity dilution subject to upcoming shareholder approval at an Extraordinary General Meeting.
- Approved issuance of up to 28 crore equity shares at ₹5 each for cash, raising ₹140 crore
- Approved issuance of 33.28 crore equity shares at ₹5 each (₹166.4 crore) to Mr. Jagjit Gouri via share swap for 21.62% of Automech Group
- Approved 8 crore convertible warrants at ₹5 each to promoter Naresh Kumar Bansal, raising ₹40 crore within 18 months
- Authorised share capital increased from ₹200 crore to ₹250 crore
- Seller Jagjit Gouri will hold 14.29% post-issue shareholding following the swap transaction
Rama Steel Tubes has approved a major preferential issue and warrant issuance alongside amending its Share Purchase Agreement to acquire Automech Group Holding Limited. The board approved issuing 28 crore shares for cash (₹140 crore), 33.28 crore shares via swap (₹166.4 crore) for a 21.62% stake in Automech, and 8 crore convertible warrants (₹40 crore) to promoters, all priced at ₹5 per share. Total proposed issuance amounts to ₹346.4 crore, which represents ~53% of its current market cap of ₹654 crore. The transactions will result in substantial equity dilution subject to upcoming shareholder approval at an Extraordinary General Meeting.
- Approved issuance of up to 28 crore equity shares at ₹5 each for cash, raising ₹140 crore
- Approved issuance of 33.28 crore equity shares at ₹5 each (₹166.4 crore) to Mr. Jagjit Gouri via share swap for 21.62% of Automech Group
- Approved 8 crore convertible warrants at ₹5 each to promoter Naresh Kumar Bansal, raising ₹40 crore within 18 months
- Authorised share capital increased from ₹200 crore to ₹250 crore
- Seller Jagjit Gouri will hold 14.29% post-issue shareholding following the swap transaction
Rama Steel Tubes has approved a major preferential issue and warrant issuance alongside amending its Share Purchase Agreement to acquire Automech Group Holding Limited. The board approved issuing 28 crore shares for cash (₹140 crore), 33.28 crore shares via swap (₹166.4 crore) for a 21.62% stake in Automech, and 8 crore convertible warrants (₹40 crore) to promoters, all priced at ₹5 per share. Total proposed issuance amounts to ₹346.4 crore, which represents ~53% of its current market cap of ₹654 crore. The transactions will result in substantial equity dilution subject to upcoming shareholder approval at an Extraordinary General Meeting.
- Approved issuance of up to 28 crore equity shares at ₹5 each for cash, raising ₹140 crore
- Approved issuance of 33.28 crore equity shares at ₹5 each (₹166.4 crore) to Mr. Jagjit Gouri via share swap for 21.62% of Automech Group
- Approved 8 crore convertible warrants at ₹5 each to promoter Naresh Kumar Bansal, raising ₹40 crore within 18 months
- Authorised share capital increased from ₹200 crore to ₹250 crore
- Seller Jagjit Gouri will hold 14.29% post-issue shareholding following the swap transaction
Rama Steel Tubes Limited has issued the notice for its 52nd Annual General Meeting (AGM) scheduled for September 30, 2026, via Video Conferencing. Key agenda items include the adoption of FY26 audited financial statements and the re-appointment of director Mr. Rakesh Chaturvedi, who is retiring by rotation. Shareholders will also vote on appointing Ms. Anju Kumari as a Non-Executive Independent Woman Director for a 5-year term from October 1, 2026, to September 30, 2031. Additionally, the company seeks ratification of Rs 50,000 annual remuneration for cost auditor M/s Dhawan & Co. for FY27.
- 52nd Annual General Meeting scheduled for September 30, 2026, at 12:30 PM IST via VC/OAVM
- Special resolution proposed for the appointment of Ms. Anju Kumari as Independent Woman Director for a 5-year term (Oct 1, 2026 to Sept 30, 2031)
- Re-appointment of director Mr. Rakesh Chaturvedi (holding 65,000 shares) subject to retirement by rotation
- Ratification of Rs 50,000 per annum remuneration to Cost Auditors M/s Dhawan & Co. for FY 2026-27
Rama Steel Tubes reported standalone revenue from operations of ₹174.08 Cr for the quarter ended June 30, 2026, down 28.3% YoY from ₹242.67 Cr in Q1 FY26. Standalone profit after tax (PAT) reached ₹4.20 Cr, declining 34.9% YoY compared to ₹6.45 Cr, but improving sequentially from ₹1.48 Cr in Q4 FY26. In addition, the Board appointed M/s Dhawan & Co. as Cost Auditor for FY27 and Mrs. Anju Kumari as an Independent Woman Director for a 5-year term starting October 1, 2026.
- Standalone revenue from operations fell 28.3% YoY to ₹174.08 Cr compared to ₹242.67 Cr in Q1 FY26
- Standalone profit after tax (PAT) came in at ₹4.20 Cr vs ₹6.45 Cr in Q1 FY26 and ₹1.48 Cr in Q4 FY26
- Manufacturing segment revenue stood at ₹101.42 Cr while Trading contributed ₹72.66 Cr
- Appointed M/s Dhawan & Co. as Cost Auditor for FY 2026-27 and Mrs. Anju Kumari as Independent Woman Director for 5 years effective October 1, 2026
Rama Steel Tubes announced the appointment of Mrs. Anju Kumari as an Additional Non-Executive Independent Woman Director for a 5-year term effective October 1, 2026, subject to shareholder approval. Concurrently, the Board approved the appointment of M/s Dhawan & Co. as Cost Auditor for FY 2026-27. The company also approved its Q1 FY27 results, reporting standalone revenue from operations of Rs 174.08 crore, down 28.3% YoY compared to Rs 242.67 crore in Q1 FY26. Standalone net profit for the quarter ended June 30, 2026, stood at Rs 4.20 crore against Rs 6.45 crore in the prior-year period.
- Appointed Mrs. Anju Kumari as Independent Woman Director for a 5-year term starting October 1, 2026
- Appointed M/s Dhawan & Co. as Cost Auditor for the financial year 2026-27
- Reported Q1 FY27 standalone revenue from operations of Rs 174.08 crore (Rs 17,407.87 lakhs) vs Rs 242.67 crore in Q1 FY26
- Standalone profit after tax stood at Rs 4.20 crore (Rs 419.52 lakhs) with quarterly EPS of Rs 0.03
Rama Steel Tubes reported a weak set of standalone results for Q1 FY27, with revenue from operations declining 28.3% YoY to ₹174.08 Cr. Operational profitability was severely hit as Profit Before Tax (PBT) plummeted 73% YoY to ₹2.28 Cr compared to ₹8.49 Cr in Q1 FY26. Net Profit (PAT) stood at ₹4.20 Cr, which was significantly supported by a ₹2.10 Cr tax credit related to earlier years. The manufacturing segment, the company's core, saw a sharp revenue contraction of 38% YoY, reflecting significant volume or pricing headwinds.
- Standalone Revenue from Operations fell to ₹174.08 Cr from ₹242.67 Cr in Q1 FY26.
- Profit Before Tax (PBT) declined 73% YoY to ₹2.28 Cr from ₹8.49 Cr.
- Net Profit (PAT) of ₹4.20 Cr was aided by a ₹2.10 Cr tax credit for earlier years.
- Manufacturing segment revenue dropped to ₹101.42 Cr from ₹163.45 Cr YoY.
- Finance costs remained high at ₹1.65 Cr, consuming a large portion of operating earnings.
Rama Steel Tubes Limited has approved the sale of its non-core unit (land and shed structure) located in Sahibabad, Uttar Pradesh, for Rs 26.75 Cr. The unit contributed zero revenue and had no net worth in the previous financial year, indicating it was an idle asset. The sale proceeds represent approximately 6.4% of the company's net worth (Rs 419 Cr) and 4.3% of its current market capitalization. The transaction is with Paras Buildwell LLP and is not a related party transaction.
- Sale of land and shed structure for an aggregate consideration of Rs 26.75 Cr
- The unit contributed 0% to the company's turnover and net worth in the last financial year
- Agreement to Sell executed on July 17, 2026, with Paras Buildwell LLP
- Proceeds represent approximately 46% of the company's total debt of Rs 58 Cr
- Transaction is an outright sale and not part of any Scheme of Arrangement
ICRA has withdrawn the credit ratings for Rama Steel Tubes' bank facilities totaling Rs 110 crore at the company's request and following a No Objection Certificate from its bankers. The facilities included Rs 80 crore in long-term cash credit and Rs 30 crore in short-term non-fund based limits. Prior to withdrawal, the ratings were [ICRA]BB+ and [ICRA]A4+, both on 'Rating Watch with Developing Implications'. The withdrawal comes amid a period of financial stress, with the company's PAT declining from Rs 29.3 crore in FY2024 to Rs 10.5 crore in FY2026.
- Withdrawal of ratings for bank facilities totaling Rs 110.00 crore at the company's request.
- Long-term fund-based cash credit facility of Rs 80.00 crore was previously rated [ICRA]BB+.
- Short-term non-fund based facility of Rs 30.00 crore was previously rated [ICRA]A4+.
- Company's Interest Coverage ratio deteriorated to 1.4x in FY2026 from 2.8x in FY2024.
- Total Debt/OPBDITA ratio increased significantly to 7.6x in FY2026 from 2.4x in FY2024.
Rama Steel Tubes Limited has submitted its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The filing, covering the quarter ended June 30, 2026, includes a confirmation from the company's Registrar and Share Transfer Agent, Bigshare Services Private Limited. The registrar confirmed that zero (0) dematerialization requests were received from shareholders during the three-month period. This is a standard administrative filing required for all listed entities in India.
- Reporting period covers April 1, 2026, to June 30, 2026
- Total dematerialization requests received during the quarter: 0
- Compliance certificate issued by Registrar Bigshare Services Private Limited on July 6, 2026
- Filing submitted to exchanges on July 8, 2026
Rama Steel Tubes Limited has announced the closure of its trading window starting July 1, 2026, in compliance with SEBI insider trading regulations. This closure is a standard procedure ahead of the declaration of the company's unaudited financial results for the quarter ending June 30, 2026. The window will remain closed for all designated persons and their immediate relatives until 48 hours after the results are made public. The specific date for the board meeting to approve these results will be announced at a later time.
- Trading window closure begins on July 1, 2026, for the quarter ending June 30, 2026.
- Restriction applies to all Designated Persons and their immediate relatives as per SEBI regulations.
- The window will reopen 48 hours after the official declaration of the unaudited financial results.
- The date for the Board Meeting to consider the results will be intimated separately.
Rama Steel Tubes Limited reported a steady performance for FY26 with revenue from operations growing 13.6% YoY to ₹954.33 crore. Net profit for the full year saw a modest increase to ₹14.53 crore compared to ₹14.00 crore in FY25. The company is streamlining its structure by striking off its non-operational subsidiary, Rama Defence Private Limited, and has relocated its corporate office to Noida. Investors should be aware of a pending income tax dispute where the department has proposed a ₹49.48 crore addition to taxable income for AY 2023-24.
- Annual revenue from operations increased to ₹954.33 crore in FY26 from ₹840.03 crore in FY25.
- Net profit for FY26 stood at ₹14.53 crore, representing a year-on-year growth of 3.8%.
- The Board approved the strike-off of Rama Defence Private Limited, an inactive subsidiary with a nominal net worth of ₹18,000.
- Stake in Bigwin Buildsys Coated Private Limited diluted from 24.80% to 9.32%, resulting in it ceasing to be an associate company.
- The Income Tax Department issued a draft assessment order proposing to increase taxable income by ₹49.48 crore for AY 2023-24, which the company is contesting.
Financial Performance
Revenue Growth by Segment
Consolidated revenue was INR 1,046.5 Cr in FY2024, representing a 21.7% decline from INR 1,336.8 Cr in FY2023. However, H1 FY2023 saw a 78% YoY growth reaching INR 587.2 Cr, driven by volume expansion in steel tubes.
Geographic Revenue Split
The company is pan-India with units in North, South, and West. It is expanding globally via the UAE (Automech acquisition) to target GCC and European markets. Nigeria operations previously contributed but faced disruptions impacting working capital.
Profitability Margins
PAT margins were 1.9% in FY2023, improving to 2.8% in FY2024, but softened to 2.1% in 9M FY2025. Operating profit margins (OPBDIT/OI) fluctuated from 3.8% (FY23) to 5.7% (FY24) and dropped to 2.7% in 9M FY2025 due to steel price volatility.
EBITDA Margin
Core EBITDA margins stood at 5.7% in FY2024, up from 3.8% in FY2023. The company targets 12-13% EBITDA margins for its new 30,000 MTPA value-added product line at Khopoli, compared to the 5-5.5% average for standard products.
Capital Expenditure
The company is investing in a 30,000 MTPA value-added line at Khopoli. It has a target to scale total capacity to 0.5 million tons by the end of FY2025, requiring significant ongoing investment in manufacturing infrastructure.
Credit Rating & Borrowing
ICRA maintains a Stable outlook but notes liquidity pressure. Fund-based limits were reduced from INR 125 Cr to INR 80 Cr (a 36% reduction), further constraining the liquidity buffer.
Operational Drivers
Raw Materials
Steel coils and sheets represent the primary raw material cost, accounting for the bulk of the cost of goods sold. Steel prices dropped 10-12% in Q2 FY2023, leading to inventory losses.
Import Sources
Sourced primarily from domestic Indian steel producers for India operations; UAE operations (Automech) source locally in the Middle East to serve GCC and European regions.
Key Suppliers
Not specifically named in the documents, but the company maintains high advances to suppliers to secure raw material flow.
Capacity Expansion
Current installed capacity is 2,94,000 MTPA as of September 2024. The company plans to expand this to 5,00,000 MTPA (0.5 million tons) by the end of FY2025, a 70% increase.
Raw Material Costs
Raw material costs are highly volatile; a 10-12% drop in steel prices in Q2 FY2023 negatively impacted margins due to a 45-day inventory holding period.
Manufacturing Efficiency
The company is increasing its SKU count from 1,300 to 2,500 (a 92% increase) to improve market penetration and manufacturing flexibility.
Logistics & Distribution
Strategically located plants in Sahibabad (UP), Khopoli (Maharashtra), and Anantpur (AP) provide a pan-India reach and help minimize freight costs as a percentage of revenue.
Strategic Growth
Expected Growth Rate
100%
Growth Strategy
Growth will be achieved by scaling capacity to 0.5 million MTPA by FY2025, acquiring a 21.62% stake in Automech (UAE) for AED 64 million to enter GCC/Europe, and increasing the share of high-margin value-added products to 30-40% of the portfolio.
Products & Services
ERW Steel Tubes (Black and Galvanized), MS Pipes, GI Pipes, Substation Structures, Cold Rolled Coils, and Sheets.
Brand Portfolio
RAMA STEEL
New Products/Services
New 30,000 MTPA value-added product line at Khopoli for export and domestic markets, expected to contribute 12-13% EBITDA margins.
Market Expansion
Geographical expansion into UAE, GCC, and European regions through the Automech acquisition. Targeting 100% export for specific value-added lines.
Market Share & Ranking
One of the pioneers in the Indian steel tube industry with a four-decade track record; operates in a highly fragmented market with significant pricing pressure.
Strategic Alliances
Acquisition of 21.62% stake in Automech (UAE) for AED 64 million; previously held an association with Hagar Mega Mart (ceased March 2024).
External Factors
Industry Trends
The steel pipe industry is growing but remains fragmented. There is a shift toward value-added precision engineering and structural products for solar and defence sectors.
Competitive Landscape
Highly competitive with numerous large established players and unorganized local manufacturers causing significant pricing pressure.
Competitive Moat
Moat is based on a 40-year brand legacy, pan-India manufacturing footprint, and a massive library of 1,300+ SKUs which are difficult for unorganized players to replicate.
Macro Economic Sensitivity
Highly sensitive to global steel price cycles and domestic infrastructure spending (e.g., Jal Jeevan Mission).
Consumer Behavior
Increased government and industrial demand for galvanized and specialized ERW pipes for infrastructure and water management projects.
Geopolitical Risks
Disruptions in Nigerian operations have previously impacted working capital; expansion into UAE/GCC introduces regional geopolitical exposure.
Regulatory & Governance
Industry Regulations
Operations are subject to BIS standards for steel pipes and environmental norms for galvanizing units. Compliance with SEBI and Companies Act 2013 for equity-based acquisitions.
Environmental Compliance
Undertakes waste management and sanitation initiatives; manufacturing process is subject to carbon emission and chemical discharge monitoring.
Risk Analysis
Key Uncertainties
Volatility in raw material prices (steel) can impact margins by 2-3% rapidly. Success of diversification into solar and defence is yet to be proven.
Geographic Concentration Risk
Pan-India presence reduces domestic risk, but Nigerian subsidiary disruptions show risks of international concentration in volatile regions.
Third Party Dependencies
High dependency on primary steel producers; liquidity is tied to advances given to these suppliers.
Technology Obsolescence Risk
Low risk in core steel piping, but the company is upgrading to precision engineering and cold-rolled products to stay competitive.
Credit & Counterparty Risk
Exposure to state government departments (e.g., HP Jal Shakti Vibhag) for large-scale orders (INR 150 Cr), which typically involves longer receivable cycles.
