RHI Magnesita FY26 loss widens on impairment, dividend declared

RHI Magnesita India Limited reported a net loss of ₹46,768.59 lakh for the financial year ended March 31, 2026, compared to a net profit of ₹22,300.29 lakh in the previous year. The loss was driven by exceptional items, including an impairment of investment in a subsidiary amounting to ₹66,092.10 lakh. For the quarter ended March 31, 2026, the company recorded a net loss of ₹62,441.94 lakh. Revenue from operations for the year stood at ₹3,35,658.78 lakh, while total income was ₹3,35,992.30 lakh.

The Board of Directors approved the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026. Price Waterhouse Chartered Accountants LLP, the statutory auditors, issued an audit report with an unmodified opinion on the financial statements. The board also recommended a final dividend of ₹2.50 per share, or 250% of the face value of Re. 1 each, for the financial year 2025-26. This dividend is subject to the approval of shareholders at the ensuing Annual General Meeting.

Standalone Financial Performance

The company’s standalone financial results for the year ended March 31, 2026, reflected the impact of the exceptional impairment charge. Profit before exceptional items and tax was ₹26,056.79 lakh. However, after accounting for the impairment of ₹66,092.10 lakh, the company reported a loss before tax of ₹40,035.31 lakh. Total expenses for the year increased to ₹3,10,164.63 lakh from ₹2,89,711.55 lakh in the previous year.

Particulars	Year ended March 31, 2026 (Audited)	Year ended March 31, 2025 (Audited)
Revenue from operations	3,35,658.78	2,89,186.01
Total income	3,35,992.30	2,89,711.55
Total expenses	3,10,164.63	2,89,711.55
Profit before exceptional items and tax	26,056.79	30,086.34
Net (loss)/profit for the year	(46,768.59)	22,300.29

Consolidated Results and Exceptional Items

On a consolidated basis, the group reported a net loss of ₹38,293.78 lakh for the year ended March 31, 2026, compared to a net profit of ₹20,351.28 lakh in the previous year. The consolidated results included an impairment loss on goodwill of ₹55,624.03 lakh recognized during the year. This impairment was assessed based on evolving market conditions and geopolitical developments affecting the future business projections of RHI Magnesita India Refractories Limited. Total consolidated revenue from operations for the year was ₹4,01,994.50 lakh.

Key Developments and Disclosures

The notes to the accounts disclosed that the company assessed the future business projections of its wholly owned subsidiary, RHI Magnesita India Refractories Limited, leading to the recognition of the impairment provision. Additionally, the company accounted for an incremental impact of ₹123.98 lakh in employee benefits expense related to new labour codes notified by the Government of India. The board proposed the dividend in its meeting held on May 29, 2026. The record date for the dividend will be announced later.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.68%	+1.85%	-2.99%	-15.11%	-22.20%	+16.64%

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.

Metric	Standalone FY26 (₹ Lakh)	Standalone FY25 (₹ Lakh)	Consolidated FY26 (₹ Lakh)	Consolidated FY25 (₹ Lakh)
Revenue from operations	335,658.78	289,186.01	401,994.50	367,449.50
Net Profit/(Loss)	(46,768.59)	22,300.29	(38,293.78)	20,251.28
Total Income	336,221.42	289,711.55	404,853.25	370,056.55

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.