Rain Industries Limited delivered a strong financial performance in the first quarter ended March 31, 2026. The Board of Directors, at its meeting held on May 8, 2026, approved the unaudited standalone and consolidated financial results for the quarter, with statutory auditors S. R. Batliboi & Associates LLP issuing an unmodified limited review report. The results were subsequently published in Business Standard (English) and Andhra Prabha (Telugu) on May 9, 2026, pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Consolidated revenue from operations stood at ₹45,207.30 million and adjusted EBITDA reached ₹7.15 billion, reflecting year-over-year improvements driven by higher volumes, improved pricing, favourable foreign exchange movements, and the tangible benefits of cost-saving initiatives executed throughout 2025. The company also achieved a Total Recordable Incident Rate (TRIR) of 0.14 during the quarter, compared to 0.11 for full-year 2025, reflecting continued best-in-class safety performance across all facilities worldwide.

Consolidated Financial Performance

Rain Industries reported consolidated EBITDA of ₹6.9 billion against ₹3.8 billion in the same period last year, with EBITDA margin expanding to 15.41% from 10.10% YoY. Net profit attributable to owners stood at ₹1.2 billion compared to a loss of ₹1.4 billion in the prior-year period, while consolidated revenue rose to ₹45.2 billion from ₹37.6 billion YoY. The following table summarises Rain Industries' consolidated financial results, comparing Q1 2026 with Q4 2025 and Q1 2025:

Reported EBITDA for the quarter included non-recurring items totalling ₹59 million. These primarily comprised an insurance claim receipt of ₹110 million related to prior-year damage at the Carbon Calcination facility in the United States, partially offset by one-time branding and advertising costs of ₹51 million incurred within the Cement segment following the launch of a new logo and packaging.

Standalone Financial Performance

On a standalone basis, Rain Industries reported revenue from operations of ₹415.91 million for the quarter ended March 31, 2026, compared to ₹447.68 million in Q4 2025 and ₹369.86 million in Q1 2025. The standalone results are summarised below:

The standalone profit before tax of ₹11.36 million in Q1 2026 marks a significant turnaround from a loss of ₹27.33 million in Q1 2025. Key standalone expense items for the quarter included purchases of stock-in-trade at ₹180.03 million, employee benefits expense at ₹96.20 million, finance costs at ₹34.23 million, and other expenses at ₹98.22 million.

Segment-Wise Performance

The Carbon, Advanced Materials, and Cement segments each contributed distinctly to the consolidated results. The table below outlines segment-level revenue and results across periods (₹ millions):

Carbon Segment

The Carbon segment was the primary driver of consolidated growth during the quarter. Revenue of ₹33.52 billion represented a 22.60% year-over-year increase, driven by stronger realizations and higher volumes, particularly within the Calcination business. Adjusted EBITDA improved by 57.30% to ₹6.45 billion, underpinned by higher volumes, price adjustments, cost savings initiatives implemented in 2025, and favourable foreign exchange movements. During the quarter, the Euro and U.S. Dollar appreciated by approximately 17.50% and 5.50%, respectively, against the Indian Rupee, providing additional translation benefits. Indian CPC facilities operated at optimum capacity following import relaxations and the successful re-activation of the company's global blending strategy.

Advanced Materials Segment

The Advanced Materials segment reported revenue of ₹8.63 billion, a 19.20% increase compared to Q1 2025, with adjusted EBITDA rising to ₹0.65 billion from ₹0.18 billion in the prior-year period. Volume growth was driven primarily by the Chemical Intermediates and Resins businesses, reflecting improved demand, reduced supplies in the market, and successful customer engagement. The segment delivered higher volumes, revenues, and EBITDA compared with the prior year despite the first quarter being seasonally softer due to winter conditions. The appreciation of the Euro by approximately 17.50% against the Indian Rupee provided further support to revenue and margins.

Cement Segment

The Cement segment experienced a 4.90% decline in revenue during Q1 2026 compared to the same period last year, attributable primarily to lower volumes amid heightened competitive intensity in South India following recent acquisitions by pan-Indian players. Elevated logistics and fuel costs exerted additional pressure on operating margins. Cement adjusted EBITDA declined to ₹0.05 billion from ₹0.06 billion in Q1 2025, with the reduction in volumes partially offset by a slight increase in net sales price realisations. As the Cement business completes 40 years of operations, the company launched a refreshed logo and redesigned packaging to reduce transit losses and enhance brand presence.

Debt Profile and Cash Flows

At the end of Q1 2026, gross term debt stood at USD 820 million, with total debt at USD 988 million including USD 179 million of working capital borrowings. Net debt amounted to USD 825 million, improving from USD 837 million at December 2025. Based on last twelve months adjusted EBITDA of USD 289 million, the net debt-to-EBITDA ratio improved to 2.85x from 3.21x at the end of Q4 2025. The company's next significant term debt maturity does not occur until October 2028.

The debt structure as of March 2026 is detailed below:

Key cash flow movements during the quarter are summarised below:

Net cash inflows from operating activities increased by ₹12.93 billion compared to the same period in the prior year, primarily due to improved profitability during the current period, as against increased working capital requirements during the prior period. Net cash inflows in investing activities include net proceeds from fixed deposit maturities along with interest income amounting to ₹2.47 billion, offset by maintenance capital expenditure of ₹0.91 billion (USD 10 million). Financing cash outflows of ₹4.92 billion were primarily attributable to interest payments and repayment of borrowings.

Commodity and Market Context

Key commodity prices reached multi-quarter highs during Q1 2026, with Brent Oil at USD 102 per barrel and Natural Gas at €53 per MWh — both at 12-quarter highs. Fuel Oil 1% reached USD 600 per tonne and Naphtha USD 853 per tonne, also at 12-quarter highs, while Benzene stood at USD 882 per tonne. On the aluminium market front, LME aluminium inventory declined to 0.45 million MT as of March 2026, while the LME aluminium quote rose to USD 3.3 thousand per MT. Global primary aluminium production is forecast to reach 44,155 thousand tonnes for China and 31,705 thousand tonnes for the rest of the world in 2026.

The ongoing conflict in the Persian Gulf has introduced significant supply-side risks into the global aluminium market. Approximately one-fifth of global petroleum coke supply is directly linked to the Persian Gulf, while the region accounts for approximately 8–9% of global primary aluminium production. Current estimates suggest that approximately 3.2 million metric tons of smelting capacity, representing about 4.60% of global aluminium capacity, is offline in the Middle East. Despite this, CPC and CTP prices showed only limited increases during the quarter, which management described as reflecting a lag in market response rather than reduced risk. Rain Industries derives approximately 50% of its revenue from the global aluminium industry and noted that only around 5% of its global CPC production is sold into the Middle East. The company stated it is taking measures to maintain supply integrity and support customers through this period of uncertainty, leveraging its global blending strategy and diversified production footprint.

Business Outlook

Rain Industries outlined the following strategic priorities going forward:

• Transforming with Purpose: Strengthening the business model across all three segments — Carbon, Advanced Materials, and Cement
• Sustainable Performance: Developing alternative sources of raw materials to achieve higher capacity utilization and mitigate supply disruptions in the Middle East
• Research & Development: Leveraging proprietary know-how in Distillation and Calcination for development of raw materials for emerging markets of BAM and ESM
• Debt Optimisation: Staying prepared and monitoring markets closely for opportunities to optimise interest costs

The company operates with a global presence encompassing 2.4 million tonnes per annum calcination capacity, 1.3 million tonnes per annum coal tar distillation capacity, 0.5 million tonnes per annum advanced materials capacity, and 4.0 million tonnes per annum cement capacity, supported by facilities with overall 187 MW co-generated steam and power capacity and renewable solar power.

Rain Industries Limited has submitted its comprehensive Business Responsibility & Sustainability Report (BRSR) for the financial year ended December 31, 2025, to both BSE Limited and the National Stock Exchange of India Limited. The filing, dated April 16, 2026, fulfills the company's regulatory obligations under Regulation 34(2)(f) of SEBI's Listing Obligations and Disclosure Requirements Regulations, 2015.

Business Operations and Segment Performance

The report covers Rain Industries' consolidated operations across three primary business segments, which together account for 90% of the company's total turnover. The Carbon segment remains the largest contributor, representing 74.46% of turnover through manufacturing of carbon products including Calcined Petroleum Coke, Coal Tar Pitch, and Petroleum Pitch, along with electricity generation from waste heat recovery.

The company operates across multiple geographies with 16 plants and offices globally - 10 locations nationally across seven Indian states and 13 international locations spanning seven countries including Germany, Belgium, Russia, Canada, Poland, United States, and UAE.

Workforce and Employment Details

Rain Industries' workforce comprises 1,794 employees and 2,795 workers as of December 31, 2025. The employee base includes 1,786 permanent employees (88.7% male, 11.3% female) and 8 other than permanent employees. The worker category consists of 537 permanent workers and 2,258 other than permanent workers, with the increase in contract workers contributing to the higher numbers compared to the previous year.

Environmental Performance and Sustainability Initiatives

The report details significant environmental metrics and sustainability initiatives across Rain Industries' operations. Total energy consumption for CY 2025 was 12,063 TJ, with renewable energy contributing 122 TJ. The company's greenhouse gas emissions totaled 3,018,603 metric tonnes of CO2 equivalent, comprising 2,869,213 metric tonnes from Scope 1 emissions and 149,390 metric tonnes from Scope 2 emissions.

Water management remains a key focus area, with total water withdrawal of 8,682,077 kilolitres and consumption of 3,850,612 kilolitres. The company has implemented Zero Liquid Discharge mechanisms at selected sites, particularly at Carbon segment plants in India and cement plants.

Waste Management and Resource Efficiency

Rain Industries generated 101,353 metric tonnes of total waste during CY 2025, consisting of 29,067 metric tonnes of hazardous waste and 72,286 metric tonnes of non-hazardous waste. The company demonstrated strong waste recovery performance, with 72,766 metric tonnes recovered through recycling (32,794 metric tonnes), reuse (38,419 metric tonnes), and other recovery operations (1,553 metric tonnes).

Corporate Governance and Compliance

The company maintains robust governance structures with comprehensive policies covering all nine principles of the National Guidelines on Responsible Business Conduct. The Board of Directors comprises seven members including one female director (14% representation). Rain Industries has established grievance redressal mechanisms for all stakeholder categories and maintains a whistle-blower policy to address concerns related to business conduct and ethics.

Independent Assurance and Verification

The BRSR has received independent third-party assurance from DQS India Private Limited. The assurance covers BRSR Core indicators at reasonable assurance level and selected environmental, social, and governance parameters at limited assurance level. The verification process included risk-based sampling across multiple facilities including operations in India, Germany, Belgium, and the United States.

The comprehensive report underscores Rain Industries' commitment to sustainable business practices, regulatory compliance, and transparent stakeholder communication across its global operations spanning carbon, advanced materials, and cement manufacturing segments.