ICRA Withdraws Ratings on Rama Steel Tubes Ltd's Bank Facilities
ICRA Limited has withdrawn the ratings assigned to various bank facilities of Rama Steel Tubes Limited, stating that it possesses no information to suggest a change in the company's credit risk since the last rating reviews. The withdrawal covers both long-term and short-term fund-based and non-fund based cash credits.The total facilities for which ICRA has withdrawn ratings amount to Rs 110.00 crore. This includes Long-term Fund-based Cash Credit of Rs 80.00 crore, previously rated [ICRA]BB+, and Short-term Non-Fund based ILC/FLC and BG amounting to Rs 30.00 crore, which was rated [ICRA]A4+. Both facilities carried a "Rating Watch with Developing Implications" status prior to the withdrawal.
ICRA stated that the ratings were withdrawn at the request of Rama Steel Tubes Limited and in accordance with ICRA's policy on rating withdrawal, based on a no-objection certificate (NOC) received from the company's bankers.
Company Profile and Operations
Rama Steel Tubes Ltd is a manufacturer and trader of steel tubes, pipes, and galvanised iron pipes, incorporated in 1974. The company is currently managed by Mr. Naresh Kumar Bansal and grandson Mr. Richi Bansal. RSTL products include MS ERW black pipes ranging from 15 mm to 200 mm diameter, and galvanised iron pipes of 15 mm to 150 mm NB in light, medium, and heavy sizes.The company operates four manufacturing facilities located in Sahibabad (Uttar Pradesh), Khopoli (Maharashtra), and Anantpur (Andhra Pradesh). As of March 31, 2025, the total production capacity stands at 2,94,000 MTPA. The company also maintains a subsidiary in the UAE and a step-down subsidiary in Nigeria.
Financial Performance Indicators
The financial health indicators for Rama Steel Tubes Ltd show varied trends across the audited financial years (FY2024 to FY2026). Key performance metrics include Operating Income, PAT, and various debt ratios.The following table details the key financial indicators:
| Indicator | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
| Operating income | 1,046.5 | 1,048.1 | 1,124.1 |
| PAT | 29.3 | 22.1 | 10.5 |
| OPBDITA/OI | 5.7% | 2.8% | 1.5% |
| PAT/OI | 2.8% | 2.1% | 0.9% |
| Total outside liabilities/Tangible net worth (times) | 1.1 | 1.0 | 0.8 |
| Total debt/OPBDITA (times) | 2.4 | 3.1 | 7.6 |
| Interest coverage (times) | 2.8 | 2.5 | 1.4 |
Rating History Overview
The company’s credit rating history for the past three years reflects changes in ratings for both long-term and short-term instruments, according to ICRA's records.A comprehensive view of the rating chronology is provided below:
| Instrument Type | Amount Rated (Rs. crore) | Last Rating (July 13, 2026) | Previous Ratings |
|---|---|---|---|
| Long-term Fund-based - Cash credit | 80.00 | [ICRA]BB+; Rating Watch with Developing Implications; Withdrawn | Jan 12, 2024: [ICRA]BBB (Stable); Mar 21, 2025: [ICRA]BB+; Rating Watch with Developing Implications |
| Short-term Non-Fund based - ILC/FLC and BG | 30.00 | [ICRA]A4+; Rating Watch with Developing Implications; Withdrawn | Jan 12, 2024: [ICRA]A3+; Mar 21, 2025: [ICRA]A4+; Rating Watch with Developing Implications |
The analytical approach employed by ICRA for these ratings included the Corporate Credit Rating Methodology and Iron& Steel Policy on Withdrawal of Credit Ratings. For arriving at the ratings, ICRA considered the consolidated financials of RSTL.
RAMASTEEL Stock Price Movement
Rama Steel Tubes Limited shares today slipped by 1.10% to settle at ₹4.52 after trading completed. The stock saw total traded volume of 1.81 million shares during its session, falling from yesterday’s close of ₹4.56.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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