Rathi Steel & Power approved its financial statements for FY25-26 and the notice for its 55th Annual General Meeting during a board meeting held on September 1, 2026. The company scheduled the AGM for September 29, 2026, to be conducted via video conferencing or other audio-visual means.

The board appointed M/s R. M. Bansal & Co. as the cost auditor and M/s DIT & Company as the internal auditor for the financial year 2026-27. These appointments were made on the recommendation of the Audit Committee.

Corporate Governance Updates

The board approved the adoption of a new Memorandum of Association to align with the latest provisions of the Companies Act, 2013. This change requires shareholder approval at the upcoming AGM. The existing Memorandum of Association will be substituted by the new version upon approval.

Mr. Sameer Kishore Bhatnagar, a practicing company secretary, was appointed as the scrutinizer for the remote e-voting and e-voting process during the AGM. The board meeting commenced at 1:50 pm and concluded at 3:45 pm.

Auditor Appointments

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

Rathi Steel & Power reported a significant turnaround in its first quarter of FY27, driven by robust volume expansion and improved product mix. The Ghaziabad-based steel manufacturer posted a 24.6% year-on-year rise in total income to ₹193.67 crore, while net profit after tax (PAT) surged 84.5% to ₹3.48 crore. The results reflect the company’s focus on operational efficiency and market penetration in the National Capital Region (NCR).

Financial Performance

The company’s top-line growth was supported by a 30% increase in total dispatch volumes, which rose to 28,372 metric tons from 21,864 metric tons in the corresponding period last year. This volume surge contributed to an EBITDA of ₹7.77 crore, marking a 24.83% year-on-year increase. PAT margins expanded by 58 basis points to 1.8%, indicating improved cost management despite volatile energy prices.

*Figures for Q1FY26 derived from disclosed growth percentages.

Segmental Highlights

The TMT bar segment emerged as the primary growth engine, with volumes more than doubling to approximately 18,677 metric tons from roughly 8,200 metric tons in Q1FY26. This strong performance offset a softer outlook in the stainless steel division, where volumes declined by 10-12% due to geopolitical disruptions affecting export-oriented end-users and high ocean freight costs.

Management noted that the revenue mix is now nearly balanced, with TMT bars contributing approximately 45-48% of total revenue, primarily serving the real estate sector in the NCR region. The remaining revenue comes from stainless steel wire rods and billets, which cater to B2B engineering applications.

What the Numbers Show

The divergence between the stainless steel and TMT segments highlights the company’s strategic pivot towards margin accretive products. While stainless steel volumes contracted due to external supply chain pressures, the company leveraged its flexible manufacturing setup to ramp up TMT production. With TMT bars now accounting for nearly half of the revenue mix, the business model is shifting from a pure stainless steel play to a diversified steel producer, reducing dependency on volatile alloy prices like nickel and molybdenum that affect the 200-series stainless steel grades.

Operational Outlook and Capex

Promoter Udit Rathi stated that the company aims to maintain its current momentum despite the monsoon season typically dampening construction activity. The firm has successfully completed trial runs for integrating its melting capacity with the TMT plant, a move expected to improve margins by increasing integration levels. Currently, rolling mill utilization stands at approximately 50-52%, with management targeting over 60% utilization for FY27.

Capital expenditure for the quarter was estimated at ₹4-5 crore, with full-year capex expected to reach ₹15 crore or more. This spending will focus on modernization, debottlenecking, and upgrading old equipment to meet industry standards. The company plans to fund this largely through internal accruals, maintaining a cautious approach to debt levels. Management also indicated plans to explore refinancing options to reduce borrowing costs, which could further boost margins in the coming years.