Rama Steel Tubes Ltd

🚀 Rama Steel Tubes Expands into High-Value Engineering with Rs. 728 Cr Automech Acquisition

- RSTL acquires Automech Group (UAE) for AED 296M (~Rs. 728 Cr) to diversify into high-value engineering services.

- Expected consolidated revenue growth: 113% (Rs. 1,065 Cr in FY25 → Rs. 2,200 Cr by FY27E).

- EBITDA margin improvement: 4% → 10%, with EBITDA surging 415% (Rs. 46 Cr → Rs. 236 Cr).

- Automech’s FY25 standalone revenue: Rs. 600 Cr, EBITDA: Rs. 125 Cr, PAT: Rs. 100 Cr (unaudited).

- RSTL to hold 21.62% stake; subsidiary RST International (UAE) acquires 78.38%.

- Deal closure expected in 6 months (pending approvals).

- Automech’s expertise: precision machining, heavy fabrication, marine services (API/ASME/ISO-certified).

- Key sectors served: oil & gas, marine, energy, construction (Gulf, MENA, South/Southeast Asia).

- RSTL Chairman calls it a 'transformative step' toward engineering leadership.

- Automech’s production to partially shift to RSTL’s India ops, boosting standalone performance.