Rathi Steel & Power reported a net profit of ₹3.48 crore for the quarter ended June 30, 2026, an 84.56% increase from ₹1.89 crore in the same period last fiscal year. Operating income climbed 24.63% to ₹193.41 crore, reflecting higher production volumes and improved operational efficiency at its Ghaziabad facility.

The company’s EBITDA rose 24.83% to ₹7.77 crore from ₹6.23 crore in Q1FY26. Total income reached ₹193.67 crore, supported by a ₹0.26 crore other income contribution compared to ₹0.11 crore previously.

Financial Performance Breakdown

Total expenditure increased to ₹185.90 crore from ₹149.17 crore, primarily driven by higher raw material costs of ₹162.42 crore against ₹124.84 crore in the prior year. Employee benefit expenses rose to ₹4.31 crore from ₹3.71 crore, while other expenses declined slightly to ₹19.17 crore from ₹20.62 crore.

What the Numbers Show

The disproportionate growth in net profit relative to revenue highlights significant operating leverage. While operating income grew 24.63%, EBITDA expanded by a nearly identical 24.83%, indicating stable margin dynamics despite rising raw material costs. The absence of tax outflows in both periods allowed the pre-tax profit growth to flow directly to the bottom line.

Balance Sheet Position

As of March 31, 2026, total assets stood at ₹327.19 crore. Trade receivables increased significantly to ₹56.54 crore from ₹24.77 crore in FY25, suggesting potential collection pressure or extended credit terms amid volume growth. Cash and bank balances remained modest at ₹2.26 crore.

Total equity rose to ₹149.89 crore, with reserves and surplus increasing to ₹54.63 crore. Long-term borrowings stood at ₹12.12 crore, while short-term borrowings were ₹32.68 crore.

Strategic Outlook

Rathi Steel plans to increase steel melting shop utilization from approximately 60% towards 80% through higher production volumes. The company aims to resume full-scale utilization of its TMT rolling mill to improve operating leverage. Key growth initiatives include scaling up stainless steel reinforcement bars and expanding the share of premium Fe 550D TMT bars in infrastructure projects.

The company targets approximately 20% revenue CAGR over the next two years, focusing on high-margin product mix and disciplined capital allocation. Planned rooftop solar installations and increased renewable power procurement through Open Access are part of its sustainable manufacturing strategy.

Earnings Call Availability

Pursuant to SEBI Listing Regulations, the audio recording of the earnings conference call held on August 18, 2026, related to the unaudited financial results for the quarter ended June 30, 2026, is available on the company’s website. The call concluded at 3:51 pm on that date.

Rathi Steel and Power Limited reported a strong operational performance for the first quarter ended June 30, 2026, with sales volume growing approximately 30% year-on-year to 28,372 MT. Revenue for the quarter exceeded ₹193 Cr, reflecting growth of more than 24% compared to the corresponding quarter of the previous financial year. This growth was driven by a diversified product portfolio across Stainless Steel products and MS TMT rebars, alongside efforts to expand market reach.

The TMT rebar segment was a primary driver of volume growth during the quarter. Sales volumes in this segment more than doubled from 8,295 MT in the corresponding quarter of the previous financial year to 18,677 MT in Q1 FY27. This scale-up strengthened the company's overall product mix and provided greater flexibility to respond to varying demand conditions across segments.

The company delivered this performance despite an operating environment marked by adverse geopolitical conditions, volatile energy costs, and fluctuating demand momentum. Its focus on optimizing the product mix and expanding its market footprint helped mitigate the impact of elevated energy costs and softer demand in select sectors.

Operational Performance

The unaudited operational figures for the quarter are detailed below:

Looking ahead, the company remains focused on leveraging its diversified capabilities to capitalize on emerging opportunities. It aims to maintain a disciplined approach to cost management amid an evolving global operating environment. The quantitative volume figures mentioned do not include miscellaneous items.