Ratnaveer Precision Engineering shares touched a record high of ₹387.80 on Monday following a strong second-quarter performance. The company reported a 56.1% increase in profit after tax, alongside plans to launch its new electronics-grade copper manufacturing facility by late 2026.
Ratnaveer Precision Engineering shares set a new record on Monday, touching an intraday high of ₹387.80 as investors responded to the company’s latest quarterly earnings. The business reported a 56.1% year-on-year jump in profit after tax for the second quarter of the 2027 fiscal year, reaching ₹24.10 crore. This growth in the bottom line was supported by a 35.5% increase in total revenue, which stood at ₹387.24 crore for the quarter.
Expanding Into Electronics Manufacturing
The stainless steel fastener business remains the core driver of the company’s current financial performance. However, much of the market interest is centered on the firm's strategic entry into the electronics sector. Ratnaveer is in the advanced stages of building a facility to manufacture FR-4 Copper Clad Laminate, an essential material for electronics, electric vehicles, and defense equipment. Because India currently relies heavily on imports for this material, the company aims to position itself as a domestic supplier to bridge the supply gap.
Progress on this facility is moving according to the recent project timeline, with 75% of the construction complete. Management expects the necessary machinery to reach the site by mid-November 2026. If the installation goes as planned, the company intends to begin trial production by December 20, 2026. The capital required for this major expansion was largely secured through a rights issue that raised approximately ₹330 crore earlier this year.
Financial and Operational Risks
While the recent growth figures are strong, investors should weigh them against the risks associated with such large capital spending. The company’s interest costs have risen significantly compared to the previous year, reflecting the financial obligations tied to its recent expansion efforts. Furthermore, the business is sensitive to the volatile prices of raw materials like stainless steel and copper. While operating margins were reported at 10.89%, maintaining consistent profitability will depend on how effectively the management controls costs during the ramp-up phase of the new factory. The success of this strategy will ultimately depend on the timely installation of new equipment and the ability to convert the new capacity into steady revenue.