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.

RHI Magnesita India Limited has cancelled its scheduled analyst and institutional investor meetings for August 18, 19, and 20, 2026. The company informed the Bombay Stock Exchange and the National Stock Exchange of India Limited on August 17, 2026, that the events were called off due to unavoidable reasons.

The meetings were initially planned to take place in Mumbai from 9:00 am to 6:00 pm each day. This cancellation follows an earlier intimation issued by the company on August 12, 2026.

Meeting Schedule Details

The cancelled sessions included both one-on-one and group formats for investors and analysts.

Regulatory Disclosure

The intimation was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with Schedule III Part A. Sanjay Kumar, Company Secretary of RHI Magnesita India Limited, signed the disclosure.