RHI Magnesita India Limited has confirmed that the scheme of merger between Intermetal Engineers (India) Private Limited and Ashwath Technologies Private Limited has become effective following regulatory approval. The Office of the Regional Director, Western Region Directorate-II, Navi Mumbai, issued the order in Form CAA-12 on August 18, 2026. This approval finalizes the amalgamation under Section 233 of the Companies Act, 2013, as previously disclosed by the company on May 22, 2026.

The appointed date for the scheme is April 1, 2026. Upon completion of the necessary formalities, Intermetal Engineers, a wholly owned subsidiary of RHI Magnesita , has been dissolved without winding up. Ashwath Technologies Private Limited, formerly a wholly owned subsidiary of Intermetal, is now a direct wholly owned subsidiary of RHI Magnesita India Limited.

Corporate Restructuring Details

The merger aims to rationalize the corporate structure by eliminating an intermediate holding layer. The company stated that the transaction is expected to yield operational efficiencies, streamline management decision-making, and reduce administrative costs associated with maintaining multiple entities.

Financial data disclosed in the earlier filing highlights the scale of the entities involved:

Intermetal Engineers operates in the manufacture and sale of machinery and equipment for steel plants. Ashwath Technologies was established to consolidate these operations. The transaction is exempt from related-party transaction regulations under Regulation 23(5)(b) of the SEBI Listing Regulations, as it involves the amalgamation of a holding company with its wholly owned subsidiary.

Board Appointments

Consequent to the effectiveness of the scheme, changes were made to the board of directors of Ashwath Technologies Private Limited effective August 18, 2026:

• Mr. Parmod Sagar and Mr. Azim Syed resigned as directors.
• Mr. Pankaj Malhan, Mr. RaviKumar Masagoundan Pudhur Periyasamy, and Mr. Abhishek Bajaj were appointed as directors.
• Mr. Pankaj Malhan was also appointed as the Chairman of Ashwath Technologies Private Limited.

The company noted that there will be no cash consideration for the issuance of shares. Ten thousand equity shares of Ashwath Technologies, with a face value of ₹10 each, were allotted to RHI Magnesita India Limited and its nominee.

RHI Magnesita India Limited has released the full transcript of its first-quarter FY27 earnings conference call, providing detailed insights into its financial performance and strategic outlook for the fiscal year. The call, held on August 12, 2026, covered the company’s unaudited results for the quarter ended June 30, 2026, highlighting strong revenue growth and margin expansion despite a volatile operating environment.

Financial Performance Highlights

During the conference call, management disclosed that revenue from operations for Q1FY27 stood at ₹1,014 crore, representing a 9% quarter-on-quarter growth and a 6% year-on-year increase. The growth was primarily driven by the steel business, supported by favorable realizations and healthy demand across key applications. The cement segment also recorded a recovery during the quarter, benefiting from seasonal maintenance demand.

Profitability metrics showed significant improvement. EBITDA for the quarter was ₹147 crore, reflecting a 42% year-on-year increase. Consequently, the EBITDA margin expanded to 14.5%, up from 10.8% in Q1FY26. This margin expansion was attributed to strong execution in the steelmaking portfolio, favorable price realization, operating leverage, and ongoing productivity initiatives. Profit after tax nearly doubled during the quarter, rising from ₹35 crore in Q1FY26 to ₹65 crore in Q1FY27.

Note: Base year figures derived from disclosed growth percentages.

Strategic Initiatives and Leadership Transition

The transcript revealed a leadership transition within the company. Parmod Sagar continues to serve as Chairman, while Pankaj Malhan assumes the role of Managing Director and Chief Executive Officer. Malhan outlined five strategic pillars for future growth, including strengthening presence in high-growth segments like ironmaking and DRI, expanding the 4PRO model, accelerating digitization, driving cost competitiveness through backward integration, and focusing on sustainability.

A key strategic development discussed was the joint venture with Khemka Refractories, named MINPRO, to establish a greenfield mineral processing facility in Odisha. Management indicated an initial investment of approximately ₹35 crore over the next two years, with an expected EBITDA margin of 8% to 10% and a payback period of less than three years after production begins. Production is targeted to start by Q4FY27.

Additionally, the company is progressing with backward integration into quartzite mining through two mines, Chiraipani and Bhikampali. These mines are expected to open towards the end of Q2FY27, providing structural cost benefits and supply resilience, particularly for serving public sector steel players.

Guidance and Outlook

Management reaffirmed its full-year guidance, maintaining an EBITDA margin target of 13% for FY27. Regarding volume growth, Chairman Parmod Sagar clarified that while earlier comments suggested a range of 7% to 9%, the company now expects 7% to 8% volume growth for the year, noting that achieving 9% would be a stretch given current market dynamics.

The balance sheet remains strong, with cash and cash equivalents standing at ₹452 crore. Working capital remained well-controlled despite strategic inventory increases to support supply continuity. Management expressed confidence in outperforming the underlying market, citing resilient business models, strong customer engagement, and healthy order visibility, particularly in the steel sector which is witnessing significant capex announcements.

What the Numbers Show

The near-doubling of PAT to ₹65 crore alongside a 370 basis point expansion in EBITDA margins indicates that the recent revenue growth is highly accretive to bottom-line profitability. The shift towards higher-margin flow control products in the steel segment appears to be a primary driver, as management noted that most price increases were linked to product mix rather than broad-based inflationary passes. Furthermore, the firm commitment to a 13% full-year EBITDA margin guidance, despite starting the year with a 14.5% run rate, suggests management anticipates potential headwinds in subsequent quarters or views the Q1 performance as partially benefiting from specific seasonal or one-off factors, warranting a conservative outlook for the remainder of FY27.