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Ratnamani Metals & Tubes Clarifies Stock Surge to BSE, Amidst Tax Allegations
Mumbai, India – Ratnamani Metals & Tubes Ltd. (RMTL) has formally addressed a query from the Bombay Stock Exchange (BSE) concerning a notable upswing in its equity share price. The company has asserted that the recent market activity is not driven by any undisclosed price-sensitive information, but rather by general market dynamics and investor understanding.
This statement comes at a critical juncture for the steel pipes and tubes manufacturer, which has recently seen significant price movements, including a 20% surge on February 12, 2026, and being a top gainer on February 18, 2026 [30, 44].
The BSE Query and Company's Response
The BSE, as part of its routine market surveillance, sought clarification from RMTL regarding the unusual volume and price movement in its shares. In its official response, dated February 13, 2026, the company unequivocally stated that no material events, information, developments, or announcements requiring disclosure under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, are currently in possession of the management that could influence the stock's price or volume [26, 28, 41]. Management attributed the surge to "purely market-driven factors based on market understanding" rather than any specific corporate developments.
Financial Performance: A Mixed Bag
Ratnamani Metals & Tubes has experienced a mixed financial performance in its recent reporting periods, which investors will be closely scrutinizing against the backdrop of market enthusiasm. For the third quarter of FY26 (ended December 31, 2025), the company reported sales of INR 10,658.33 million, a decrease of 19.03% year-on-year (YoY). Net income for the quarter stood at INR 1,098.52 million, down 1.12% YoY, with basic earnings per share (EPS) at INR 15.67, down from INR 19 YoY [42].
However, for the nine months ended December 31, 2025, the company reported a year-on-year increase in net income to INR 3,779 million from INR 3,368.43 million in the previous year, with basic EPS rising to INR 53.91 from INR 48.28 [42].
Looking at the full fiscal year FY25 (ended March 2025), revenues saw a modest increase of 2.2% to Rs 52,461 million. However, net profit declined by 13.4% to Rs 5,416 million. Operating profit margins also witnessed a contraction, falling to 15.9% in FY25 from 17.7% in FY24, attributed partly to a change in product mix towards water projects and higher expenses [29, 31].
Risk Report: Past Tax Allegations Loom
While RMTL maintains robust corporate governance practices, a significant overhang remains from allegations by the Income Tax department in late 2023/early 2024. Investigations reportedly uncovered evidence of income under-reporting and tax evasion, including alleged unaccounted sales of goods and scrap in cash, land investments, and cash loans. Although the company management stated that these developments related to promoters' family assets and not company premises, such allegations can raise concerns among investors and potentially lead to a stock de-rating [33]. No direct SEBI penalties have been identified in the public domain. The company's commitment to transparency is being closely watched in light of these past issues.
Market Dynamics and Competitor Landscape
Ratnamani Metals & Tubes operates within the Indian steel pipes and tubes market, which is projected for steady growth, with an estimated CAGR of 5.2% to 5.8% until 2030, driven by infrastructure development, oil & gas projects, and increasing exports [3, 5, 43].
Competitors are showing varied performances. APL Apollo Tubes Ltd. reported its best-ever quarterly performance in Q3 FY26, with sales volume up 11% YoY and net profit surging 43% YoY, despite challenging market conditions [9]. In contrast, Welspun Corp Ltd. showed strong growth in FY24 but presented a mixed picture in Q3 FY26, with revenues up 25% YoY while net profit declined 32% YoY [2, 4]. Welspun Corp maintains a substantial order book of approximately Rs 23,500 crore [6, 11].
RMTL's own order book recovered by 37% YoY to Rs 2000 crore as of November 2025, driven by its stainless steel pipes segment and robust subsidiary performance [25]. The company is also exploring expansion into Europe and the US markets.
Outlook and Investor Watchpoints
Despite margin pressures and mixed recent quarterly results, RMTL is seen as well-positioned due to its strong domestic presence and expanding capacities. Key growth drivers include government spending on infrastructure, oil & gas projects, and the high-margin stainless steel pipes segment. Investors will be watching for the successful execution of expansion plans, the impact of product mix changes on margins, and how the company navigates any lingering concerns from the tax investigations. The company's commitment to regulatory compliance and transparency remains paramount.
Peer Comparison
| Company | Q3 FY26 Revenue YoY Change | Q3 FY26 PAT YoY Change | Recent Market Cap (approx.) | Key Development |
|---|---|---|---|---|---|
| Ratnamani Metals & Tubes Ltd. | -19.03% | -1.12% | ₹20,000-25,000 Cr (as of Feb 2026) | Clarified stock surge to BSE, facing tax allegations. Order book recovery. |
| APL Apollo Tubes Ltd. | +11% (Volume) | +43% | ~₹50,000-60,000 Cr | Best-ever quarterly performance in Q3 FY26. |
| Welspun Corp Ltd. | +25% | -32% | ~₹15,000-20,000 Cr | Strong FY24, mixed Q3 FY26 results. Large order book. |