Rathi Steel & Power received a request on September 19, 2026, from DBG Leasing and Housing Limited to reclassify its shareholding from the "Promoter and Promoter Group" category to the "Public" category. The move follows DBG’s corporate insolvency resolution process.

Reclassification Request Details

DBG Leasing and Housing Limited holds 38,32,472 equity shares in the company, representing 4.44% of the paid-up equity share capital. Sukesh Thirani, Additional Director and member of the new management at DBG, submitted the request citing the completion of the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016.

The Hon'ble National Company Law Tribunal (NCLT), New Delhi Bench-V, approved the Resolution Plan submitted by Lenzing Polypacks Limited and Gappu Ispat on June 13, 2025. This approval transferred control of DBG to new management, removing erstwhile promoters from control.

Regulatory Compliance

The request is made pursuant to Regulation 31A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. DBG confirmed it does not exercise control over Rathi Steel & Power, nor does it have representation on the Board of Directors or key managerial personnel.

Key undertakings provided by DBG include:

• Holding less than ten percent of total voting rights in the company
• No special rights through formal or informal arrangements
• No representatives on the board of directors
• Not acting as a key managerial person
• Not classified as a wilful defaulter or fugitive economic offender

What the Numbers Show

The reclassification request highlights a structural shift in the company's promoter group composition. With DBG holding 4.44% of the equity capital, its move to the public category will alter the consolidated promoter holding percentage. The request ensures compliance with SEBI listing norms regarding promoter group definitions post-insolvency resolution.

Rathi Steel & Power will place the request before its Board of Directors for requisite approvals. The company will subsequently apply for the necessary regulatory clearances to effect the reclassification.

Rathi Steel & Power reported a 42% year-on-year increase in total revenue to ₹7,164.9 crore for FY26, driven by robust demand and the resumption of operations at its TMT bar mill. The company’s EBITDA grew by 19% to ₹288.98 crore, while net profit stood at ₹128.65 crore.

The board approved the financial statements during its meeting on September 1, 2026, and scheduled the 55th Annual General Meeting (AGM) for September 29, 2026. The meeting will be conducted via video conferencing or other audio-visual means.

Financial Performance

Total revenue from operations reached ₹7,160.5 crore in FY26, compared to ₹5,043.9 crore in FY25. The growth was supported by an increase in rolled products production to 1,02,971.46 MT from 47,440.04 MT in the previous year.

EBITDA included other income and was before exceptional items. Profit before tax decreased slightly to ₹128.65 crore from ₹139.54 crore in FY25, primarily due to higher finance costs which rose to ₹74.21 crore from ₹55.03 crore. Depreciation expenses declined to ₹86.13 crore from ₹95.69 crore.

Operational Highlights

The company resumed production at its idle TMT bar mill in Q1FY26, a strategic move to utilize idle assets and expand brand visibility. Capacity utilization levels remain at approximately 51-53%, providing significant headroom for further ramp-up. Green power consumption increased to 29.76% of total power usage, up from 9.63% in FY25, supporting the company’s sustainability goals.

Corporate Governance Updates

The board appointed M/s R. M. Bansal & Co. as the cost auditor and M/s DIT & Company as the internal auditor for FY27. These appointments were made on the recommendation of the Audit Committee.

Mr. Sameer Kishore Bhatnagar was appointed as the scrutinizer for the remote e-voting and e-voting process during the AGM. The board also approved the adoption of a new Memorandum of Association to align with the latest provisions of the Companies Act, 2013, requiring shareholder approval at the upcoming AGM.

Auditor Appointments

M/s R. M. Bansal & Co. brings experience in cost audit and management costing, having worked with entities such as NTPC, IOCL, and Coal India Ltd. M/s DIT & Company has approximately 15 years of experience in conducting financial record verifications for various manufacturing industries.

What the Numbers Show

While revenue grew significantly by 42%, net profit declined by nearly 8%. This divergence highlights that the top-line growth was largely volume-driven rather than margin-expanding. Finance costs increased by over 34% to ₹74.21 crore, reflecting higher debt utilization to support the operational ramp-up and working capital needs. The company’s focus on green power, now contributing nearly 30% of energy consumption, positions it favorably for future regulatory compliance and potential cost savings as green energy prices stabilize.