Shareholders of Rain Industries approved the re-appointment of Robert Thomas Tonti as an independent director for a five-year term via postal ballot on September 10, 2026.

The special resolution received overwhelming support from investors. The company disclosed the results in a filing with the Bombay Stock Exchange and National Stock Exchange on September 11, 2026.

Voting Results

The postal ballot process was conducted through remote e-voting from August 12, 2026, to September 10, 2026. DVM Gopal & Associates served as the scrutinizer for the exercise.

A total of 603 members responded to the ballot out of 1,84,759 shareholders on the record date of August 7, 2026.

Director Profile

Robert Thomas Tonti, aged 68, brings over 44 years of experience in calcining petroleum coke and energy production. He holds a Bachelor of Science in Chemical Engineering from Rensselaer Polytechnic Institute and an MBA from the International Institute for Management Development in Switzerland.

Tonti served as a start-up manager for Calciner Industries Inc., which was later acquired by Rain Industries. His expertise covers technical operations, commercial activities, and US regulatory standards. He currently serves on the Audit Committee and Nomination and Remuneration Committee of Rain Industries Limited.

Governance Details

The new term runs from October 31, 2026, to October 30, 2031. The company confirmed that Tonti is not debarred from holding office by SEBI or any other authority. He does not hold any equity shares in the company and has no relationships with other directors or key managerial personnel.

Rain Industries Limited reported a significant increase in working capital during the second quarter ended June 30, 2026, as management deliberately built safety stocks to mitigate supply chain disruptions. The company’s leadership highlighted improved operational stability following regulatory adaptations in India and outlined a clear deleveraging strategy aimed at strengthening the balance sheet.

Operational Performance and Carbon Segment

The Carbon segment recorded utilization at 69 percent, which management described as broadly in line with both the first quarter and the calendar year 2025 average. Despite sales volumes being approximately 10 percent lower compared to the second quarter of last year, the company noted that deferred shipments impacted volumes by roughly 10,000 to 15,000 metric tonnes.

Gerard Sweeney, Vice Chairman of Rain Carbon Inc., stated that the market environment remains constructive, supported by China’s 45 million tonnes per year production cap and growing aluminium production outside China. He noted that while some opportunistic margins were realized in the quarter, these were not solely from traditional core products but also from mix benefits in carbon black oil sales.

Balance Sheet and Working Capital Signals

The most notable financial development was the material rise in working capital. Srinivasa Rao, CFO, explained that this increase was primarily driven by higher inventory volumes rather than price increases alone. The company built safety stocks for its Indian calciners in response to Middle East disruptions and logistics uncertainty.

"We would view this as close to a peak requirement," Rao said, adding that working capital levels are expected to moderate as supply chains normalize and inventories are consumed. Consequently, cash generation did not immediately reflect the full benefit of stronger earnings, as operating cash was deployed into inventory to protect plant operations.

Strategic Outlook and Deleveraging

Management reaffirmed its focus on three priorities: EBITDA normalization, balance sheet strengthening, and disciplined capital allocation. Regarding refinancing, Rao noted that second lien notes are trading at a yield below the coupon, indicating an improving credit profile. However, early refinancing would involve meaningful costs, requiring a sufficiently attractive market window.

The company targets a net-debt-to-EBITDA ratio of around 3x over time, assuming normalized earnings. Any excess cash generated will first support working capital requirements for higher production volumes, followed by debt reduction. Management currently has no plans to raise equity under current market conditions.

What the Numbers Show

The divergence between improved earnings and stagnant short-term borrowings highlights a strategic shift in liquidity management. Rather than relying on external debt to fund operations, Rain Industries utilized internally generated cash to build defensive inventory buffers. This suggests that the recent earnings improvement is being actively recycled into operational resilience rather than immediate shareholder returns or aggressive capex, aligning with the stated priority of balance sheet strengthening before pursuing growth projects.

Advanced Materials and Future Growth

In the Advanced Materials segment, growth is being driven by specialty end markets and disciplined cost-reduction measures. The company is expanding its presence in battery materials, specifically through PETRORES specialty carbon coatings and mesophase carbon micro-beads. Jagan Nellore, Managing Director, emphasized that while battery materials represent a longer-term opportunity, progress depends on customer qualification timelines and technical validation.

Looking ahead, the company plans to commence operations of the first phase of a new distillation unit in India in early 2028. This expansion aims to enhance supply reliability and logistics flexibility in the growing Indian aluminium market, while maintaining capital discipline by prioritizing utilization improvements at existing global plants.