Ratnamani : Nuclear Spools, Lasting Moat?

Ratnamani Metals & Tubes, through its subsidiary Ratnamani Finow Spooling Solutions (RFSS), is emerging as a key beneficiary of India’s nuclear power expansion. RFSS is currently the only NPCIL-approved facility in India for manufacturing nuclear pipe spools, giving it a strong competitive moat in critical reactor piping and instrumentation. It also holds approvals for nuclear projects in Egypt, Turkey and Hungary, diversifying its revenue beyond India. The impact is already visible in its financials. RFSS revenue has surged from about ₹55 crore in FY25 to nearly ₹390 crore in FY26, aided by higher capacity utilisation and execution. Segment margins are currently around 30–35%, although management expects them to normalise to 20–25% as capacity expands. Even then, the business remains more profitable than Ratnamani’s core pipes segment. The long-term opportunity is substantial. A 1 GW nuclear reactor requires around 4,000–5,000 tonnes of pipe spools, while India aims to increase nuclear capacity from 8.8 GW today to 100 GW by 2047. RFSS has already secured an order book of about ₹550 crore, much of which is expected to be executed over the next two years. To support future demand, the company is expanding annual spooling capacity from about 1,200 MT to 4,000 MT. For investors, RFSS represents a high-entry-barrier, technology-driven business with long project visibility and global credentials. Key risks include execution delays, project lumpiness and moderation in margins from current peak levels. However, successful capacity expansion and sustained 20%+ margins could make the nuclear segment a meaningful driver of Ratnamani’s long-term earnings growth, profitability and premium valuation.