Synopsis: Ratnaveer Precision Engineering’s shares rose 10% after the company reported another quarter of double-digit earnings growth and rapid progress on its copper clad laminate (CCL) project, its entry into India’s fast-growing electronics manufacturing ecosystem. Strong exports, profitability, credit, and multiple long-term growth catalysts are helping the company move beyond stainless-steel products.
India’s manufacturing sector is benefiting from global supply-chain diversification, government-led production incentives and rising investments across electronics, renewable energy and infrastructure. Companies with strong export capabilities and integrated manufacturing platforms are increasingly expanding into high-value industries to capture long-term growth opportunities. Against this backdrop, Ratnaveer Precision Engineering reported a healthy first quarter while showcasing meaningful progress on its next growth engine.
Q1 FY27 Performance
Ratnaveer Precision Engineering reported consolidated revenue of Rs. 314.64 crore for the quarter ended June 2026, registering an 18.9% year-on-year and 26.4% sequential increase. Total income rose 20.2% YoY to Rs. 318.43 crore, reflecting healthy demand across its stainless-steel product portfolio and export markets.
The company continued to improve profitability despite operating in a manufacturing business where raw material costs remain volatile. EBITDA increased 31.7% YoY to Rs. 35.98 crore, while the EBITDA margin expanded by 111 basis points to 11.43%, indicating better operating efficiency and improved product mix. A basis point (bps) is one-hundredth of a percentage point, commonly used to measure changes in margins or interest rates.
Profitability at the bottom line remained equally strong. Profit before tax (PBT) increased 21.9% YoY to Rs. 21.88 crore, while profit after tax (PAT) grew 22.0% to Rs. 18.24 crore. PAT margin also improved to 5.80%, compared with 5.65% in the corresponding quarter last year.
On a sequential basis, however, EBITDA margin moderated from 14.32% in Q4 FY26 to 11.43%, while PAT margin declined from 6.84% to 5.80%, primarily due to a higher operating cost base accompanying rapid revenue growth. At the same time, interest costs declined 16.4% QoQ, highlighting improving financial discipline despite continued expansion.
Copper Clad Laminate Project Opens a New Growth Avenue
While the quarterly performance remained strong, the company’s biggest long-term opportunity lies in its entry into the Copper Clad Laminate (CCL) business. A Copper Clad Laminate (CCL) is the base material used in manufacturing Printed Circuit Boards (PCBs), which form the backbone of electronic products ranging from smartphones and electric vehicles to telecom equipment, defence systems and industrial electronics.
Under the ECMS, Ratnaveer will invest Rs. 338 crore over three years to set up India’s first FR-4 grade copper-clad laminate factory. The ECMS has approved the project, and the company has ordered and installed the equipment for the first production line. Commercial production is set to start in November 2026, with the other lines coming on stream in stages.
Management estimates that the first phase could generate Rs. 108 crore in annual revenue, while the fully scaled project has the potential to deliver over Rs. 750 crore in revenue, Rs. 150 crore EBITDA and Rs. 83 crore PAT, with an estimated 29% return on investment. Even after full commissioning, the planned capacity would account for only around 1.8% of India’s projected CCL market, leaving significant room for future expansion.
The fast-growing electronics manufacturing sector in India further enhances the opportunity. The domestic PCB market is likely to touch Rs. 1.77 lakh crore by 2032, while the Indian CCL market is pegged at Rs. 29,880 crore by 2031. India’s domestic CCL demand is over 90% met by imports, and the project aligns with government initiatives such as PLI, Make in India, Atmanirbhar Bharat, and the India Semiconductor Mission.
Export Leadership and Integrated Manufacturing Continue to Drive the Core Business
Ratnaveer continues to strengthen its core stainless-steel engineering business alongside its expansion into electronics. With over 800 employees and five integrated manufacturing facilities in Gujarat, the company serves 219 customers in 31 countries through 89 distribution partners. India’s largest exporter of stainless-steel washers supplies Fortune 500 OEMs and manufactures precision washers, fasteners, tubes, pipes, finishing sheets, and sheet metal components. In FY26, the company processed over 46,600 metric tonnes of stainless steel.
Its manufacturing operations are supported by extensive backward and forward integration, automated production facilities, imported machinery and internationally recognised certifications, including ISO 9001, ISO 14001, ISO 45001 and CE. The company also operates with nearly 90% renewable power, helping improve sustainability and long-term operating efficiency.
Multiple Growth Catalysts Strengthen Long-Term Outlook
Beyond its financial performance, Ratnaveer highlighted several developments that reinforce its long-term growth strategy. In addition, NSE and BSE have granted in-principle approval for a rights issue of up to Rs. 330 crore, which will primarily fund the CCL project and other expansion initiatives. The investor presentation further states that the CCL project has already achieved around 60% completion, keeping it on track for commercial production.
Strategic Insight and Industry Analysis
Ratnaveer’s growth story has now moved beyond stainless steel products. Its traditional business is still generating healthy revenue growth, expanding margins and strong export performance, but the planned entry of the company into electronics materials could very substantially reshape its future earnings profile. Copper-clad laminates are a core input in India’s burgeoning PCB and semiconductor ecosystem. With the country heavily reliant on imports, there is a giant opportunity for local manufacturers.
The combination of strong export leadership, diversified manufacturing, improving financial performance, a strengthened credit profile and steady progress on the CCL project appears to have boosted investor confidence, reflected in the stock hitting the 10% upper circuit. Going forward, investors are likely to monitor the commissioning of the CCL facility, execution of the proposed rights issue, margin sustainability, export demand and the company’s ability to establish itself as a meaningful player in India’s electronics manufacturing ecosystem.
Ratnaveer Precision Engineering Limited is a leading manufacturer of stainless-steel finished products with an operational history of over 25 years. The company has five integrated manufacturing facilities in Gujarat and manufactures washers, precision fasteners, tubes & pipes, finishing sheets and sheet metal components. Ratnaveer is India’s largest exporter of stainless steel washers, with 89 distribution partners serving 219 customers and exporting to 31 countries. The company is also venturing into electronics-grade materials with the upcoming Copper Clad Laminate (CCL) project, entering the high-growth electronics manufacturing value chain.
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