RHI Magnesita India reported a net loss of ₹38,293.78 lakh for the financial year ended March 31, 2026, primarily due to exceptional impairment charges, even as revenue crossed the ₹4,000 crore milestone. The Board of Directors approved the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, at a meeting held on May 29, 2026. Price Waterhouse Chartered Accountants LLP, the statutory auditors, issued an unmodified opinion on the financial statements. Pursuant to Regulation 30, 33 and 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company published the extract of these audited financial results in the Financial Express (English) and Pratahkal (Marathi) Mumbai editions on May 31, 2026.

Financial Performance

The company recorded a loss of ₹62,441.94 lakh for the quarter ended March 31, 2026, compared to a profit of ₹3,639.28 lakh in the corresponding period of the previous year. For the full year, the standalone net loss stood at ₹46,768.59 lakh against a profit of ₹22,300.29 lakh in FY25. Revenue from operations for the year increased to ₹335,658.78 lakh from ₹289,186.01 lakh in the previous year.

The consolidated results followed a similar trend, with a net loss of ₹38,293.78 lakh for FY26 compared to a profit of ₹20,251.28 lakh in FY25. Consolidated revenue from operations rose to ₹401,994.50 lakh from ₹367,449.50 lakh, achieving a 9% year-on-year growth.

Exceptional Items

The financial performance was significantly impacted by exceptional items. The company recognised an impairment of investment in a subsidiary amounting to ₹66,092.10 lakh in the standalone results. In the consolidated results, an impairment loss of goodwill of ₹55,624.03 lakh was recorded. These impairments were assessed based on evolving market conditions and geopolitical developments affecting future business projections of its subsidiary, RHI Magnesita India Refractories Limited.

Operational Highlights

The company's total expenses for the year increased to ₹310,164.63 lakh in standalone terms from ₹259,625.21 lakh in the previous year. Basic and diluted earnings per share (EPS) for FY26 stood at (₹22.65) compared to ₹10.80 in the previous year. The company continues to focus on its core business of manufacturing refractories and monolithics.

Despite the net loss, the Board of Directors recommended a final dividend of ₹2.50 per share, which translates to 250% of the face value of Re. 1 each. This dividend is subject to the approval of shareholders at the ensuing Annual General Meeting.

Strategic and Operational Updates

RHI Magnesita India achieved record annual revenue crossing the ₹4,000 Crore milestone, driven by market share gains in the Steel and Iron-making segments. The company reported adjusted EBITDA margins of 12% in FY26 and record cash generation of ₹409 Cr, resulting in a Net Cash Positive position. Shipments for the year reached 523 KT, a 9.4% increase compared to the previous year.

The company secured new 4PRO contract wins and initiated ceramic welding operations for coke oven maintenance in India. It also completed the legal transfer of quartzite mines acquired through M&A to RHIMIR, with operations set to commence in Q1 FY27. The firm received the Silver Award Certificate under the Tamil Nadu Pollution Control Board Voluntary Green Rating Initiative and a CSR award from the Chief Minister of Andhra Pradesh.

Outlook and Guidance

Management stated that FY26 was a resilient year despite industry headwinds such as excess capacity, aggressive pricing, and rising raw material costs. For FY27, the company projects an EBITDA margin of 13% and expects to outperform market volume growth by 1% to 2%. The company has a strong order book for the next 18 months, including one of the largest coke oven projects, and has secured price increases effective from May 2026 to offset inflationary pressures. Capital expenditure for FY27 is estimated at approximately ₹150 crore, focusing on operational excellence, automation, and sustainability.

RHI Magnesita India Limited has announced that its board, along with the boards of its subsidiaries, has approved a scheme of merger. The scheme involves the amalgamation of Intermetal Engineers (India) Private Limited, a wholly owned subsidiary, with and into Ashwath Technologies Private Limited, which is a wholly owned subsidiary of Intermetal. The appointed date for the merger is April 1, 2026.

The transaction is structured under Section 233 of the Companies Act, 2013. As both entities are wholly owned subsidiaries, the scheme is exempt from related party transaction regulations under SEBI Listing Obligations. The merger is expected to simplify the corporate structure by eliminating the holding company layer, resulting in a single consolidated entity.

Financial and Operational Details

The merger aims to streamline management and reduce administrative, legal, and compliance costs. It will also consolidate assets, liabilities, and business operations to strengthen the financial position of the transferee company. The turnover figures for the entities involved for the year ended 2026 are detailed below.

Shareholding and Rationale

Intermetal Engineers primarily manufactures, sells, and deals in machinery and equipment for steel plants. Upon the scheme becoming effective, 10,000 equity shares of Ashwath Technologies, with a face value of Rs. 10 each, will be issued to RHI Magnesita India Limited and its nominee. There will be no cash consideration for this issuance.

Consequently, the shareholding of RHI Magnesita India Limited in Intermetal Engineers will stand cancelled. Ashwath Technologies will become a 100% wholly owned subsidiary of RHI Magnesita India Limited. The management believes this consolidation will lead to greater operational efficiencies and optimal resource utilization.