Ratnaveer Precision Engineering Reports 56% Jump in Q2 Profit

Revenue grew 35.46% to ₹387 crore; Profit after tax reached ₹24.07 crore.

Reader Takeaway: Strong core revenue growth and a transparent CCL project timeline drive sentiment, while machinery execution risks remain.

What just happened

Ratnaveer Precision Engineering announced robust financial results for Q2 and H1 FY27, showcasing a 35.46% year-on-year revenue increase to ₹387 crore. The company’s bottom line showed significant improvement, with profit after tax (PAT) surging 55.97% to ₹24.07 crore. EBITDA also saw a healthy rise of 38.85% to ₹42.13 crore. The company reported a 156% increase in net worth, strengthening its balance sheet for upcoming capital expenditure.

CCL Project Update

The firm’s move into electronics-grade materials via the Copper Clad Laminate (CCL) project is progressing as planned. Civil work is 75% complete, with machinery arrivals expected in November 2026. The management team has set a trial run window between December 20, 2026, and January 20, 2027, aiming for 85% capacity utilization by April 2027. This project is a key diversification effort to capture demand from domestic PCB manufacturers.

Management Strategy

Management highlighted that the Indian market for CCL faces a supply shortage, which provides a competitive advantage. Pricing for the new products will be benchmarked against Chinese imports, with Ratnaveer offering superior lead-time and logistics support. Crucially, the company stated that capital requirements for this expansion are fully funded via its rights issue, removing the immediate threat of equity dilution for retail shareholders.

Risks to watch

Investors should monitor the operational risks associated with commissioning high-precision machinery. While the timeline is firm, complex technical installations can occasionally face startup delays. Additionally, gross margins saw a slight dip in Q2 due to upfront expenses for the new product line, though management expects this to normalize as commercial production scales up.

What to track next

The next major milestone is the successful commissioning of the CCL production lines in Q4 FY27. Watch for updates on the initiation of trial runs and the acquisition of long-term contracts with PCB manufacturers, which will serve as the primary indicators of the project's long-term success.