The agency has reaffirmed its 'Crisil A1+' rating on the short-term bank facilities.

Crisil Ratings stated that the upgrade reflects the strengthening of the company's business risk profile, driven by increasing revenue diversification through the faster-than-expected scale-up of subsidiaries, a robust growth in order book providing healthy growth visibility, its sustained market leadership in the niche stainless steel tubes and pipes (SSTP) segment, and strong operating efficiency.

The upgrade is further supported by the company's strong financial risk profile, characterised by conservative leverage, a net cash position, strong liquidity and healthy cash accrual generation.

Going forward, revenue is expected to grow at a healthy rate of 12–15%, supported by its record-high order book of over Rs 4,900 crore as on 31 August 2026, strong execution capabilities, stabilisation and ramp-up of the Odisha facility, recovery in export business, and continued scale-up of subsidiary operations.

Notably, more than 50% of the order book comprises high-value pipe spooling orders for nuclear power projects, which typically generate operating margins in excess of 30%, underscoring the improving quality of the revenue mix.

The increasing contribution from these value-added, high-margin businesses, along with improving operating leverage at subsidiaries, is expected to further strengthen the consolidated profitability profile. The operating margin should sustain at a healthy 17–18% over the medium term, supporting strong cash accrual generation and financial flexibility.

The ratings continue to reflect Ratnamani's strong business risk profile, supported by its market leadership in the SSTP segment, diversified revenue streams, and healthy financial risk profile, as reflected in low gearing and comfortable debt protection metrics.

These strengths are partially offset by the company's large working capital requirement and susceptibility to slowdowns in end-user industries.

Ratnamani manufactures a wide range of welded and seamless stainless steel tubes and pipes (SSTP) (installed capacity of 61,500 TPA) and carbon steel pipes (5,10,000 TPA) of LSAW, HSAW, circumferential seam submerged arc welded and ERW pipes.

The scrip fell 1.02% to currently trade at Rs 2833.30 on the BSE.