Rama Steel Tubes Limited (NSE: RAMASTEEL; BSE: 539309), one of India’s leading manufacturers of steel pipes and tubes, has announced its plan to acquire Automech Group, a UAE-based multi-award-winning provider of high-precision manufacturing services, machines, and components for a total consideration of AED 296 million (Approx Rs. 728 Crores). This strategic transaction marks a defining milestone in RSTL’s journey to diversify into high-value engineering services and strengthen its presence across the GCC and MENA regions.
Post-acquisition, RSTL expects consolidated total revenue to rise by over 113% (FY27E post-acquisition expected figures vs FY25 reported consolidated figure) from Rs. 1,065 crores in FY25 to approximately over Rs. 2,200 crores by FY27E, with EBITDA margins improving from 4% to 10%. Consolidated EBITDA is expected to nearly 415%, from Rs. 46 crores in FY25 against expected Rs. 236 crores in FY27E (FY27E post-acquisition expected figures vs FY25 reported consolidated figure), driven by operational synergies and improved product-service mix.
Automech’s standalone revenues are Rs. 611 crores and profit stood at Rs. 101 crores in FY25 (Exchange Rate 24.33 considered for conversion of AED to INR).
Automech Group is a multi-award-winning provider of high-precision manufacturing services, machines, and components. Founded in 1991, Automech has evolved into a diversified engineering conglomerate serving oil & gas, marine, energy, construction, and heavy industries across the Gulf, MENA, South, and Southeast Asia.
Rama Steel Tubes Limited is one of India’s leading manufacturers of ERW steel pipes and tubes, galvanized pipes, and related products. With over five decades of expertise, RSTL offers a diversified product portfolio serving infrastructure, construction, and industrial sectors. The company operates state-of-the-art facilities across India and has a strong export presence in multiple international markets, supported by subsidiaries in the UAE and Nigeria.
