RHI Magnesita India Limited reported a robust start to FY27, with consolidated revenue from operations growing 9% quarter-on-quarter to ₹1,014 crore in Q1FY27. The refractory manufacturer’s adjusted EBITDA surged 30% quarter-on-quarter to ₹147 crore, expanding the margin to 14.5% from 12.1% in Q4FY26. This performance was primarily driven by strong demand in the steel segment, supported by favorable price increases and volume growth, alongside maintenance-led demand in the cement sector.

The Board of Directors approved the unaudited financial results on August 11, 2026. Price Waterhouse Chartered Accountants LLP, the statutory auditors, issued limited review reports in accordance with Standard on Review Engagements (SRE) 2410. The results were filed with BSE and NSE pursuant to Regulation 30 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance Highlights

Consolidated revenue reached ₹1,014 crore in Q1FY27, up from ₹932 crore in Q4FY26 and ₹960 crore in Q1FY26. Standalone revenue also grew 7.2% year-on-year to ₹863.45 crore. The company reported a standalone net profit of ₹78.19 crore, a significant improvement from ₹4.65 crore in Q1FY26, largely due to the absence of the exceptional impairment charge of ₹660.92 crore recorded in the prior year. Consolidated net profit stood at ₹64.61 crore, compared to ₹3.53 crore in Q1FY26.

Basic earnings per share stood at ₹3.79 on a standalone basis and ₹3.13 on a consolidated basis. Working capital intensity remained at 36%, driven by inventory buildup to support future growth outlooks in FY27. Net cash to EBITDA improved from 0.1x to 0.3x, reflecting enhanced cash conversion efficiency.

Operational Efficiency and Margin Expansion

The expansion in EBITDA margin to 14.5% reflects disciplined execution of self-help initiatives and effective recovery of input cost inflation. Market share gains in high-margin applications further contributed to profitability. The company achieved approximately a 7% reduction in energy consumption and a 6% reduction in CO₂ emissions year-on-year through advanced automated drying technology and diversified energy sourcing. Shipment volumes increased by 5% quarter-on-quarter to 122 kilotons, while production rose by 2%.

Strategic Developments

Subsequent to the quarter end, on July 16, 2026, the company incorporated RHI Khemka Minpro Private Limited (RHIKMPL), a joint venture with Khemka Refractories Private Limited. RHI Magnesita holds a 51% equity stake in this entity, which will undertake mineral processing activities to create a circular refractory ecosystem. This move aims to secure upstream raw material supplies and reduce dependency on external vendors. Additionally, the company is scaling its 4PRO contracts, backed by positive customer sentiment, and has secured future pellet orders in the Flow Control market.

What the Numbers Show

The shift from an exceptional loss in Q1FY26 to a strong profit in Q1FY27 highlights the normalization of earnings after the one-time goodwill impairment of ₹556.24 crore related to RHI Magnesita India Refractories Limited (RHIMIRL). The consistent quarter-on-quarter growth in both revenue and adjusted EBITDA indicates underlying operational strength, particularly in the steel segment where pricing power is being effectively leveraged. The improvement in net cash to EBITDA suggests better liquidity management despite the working capital intensity driven by strategic inventory buildup.

RHI Magnesita India Limited company name has disclosed that its statutory auditor, Price Waterhouse Chartered Accountant LLP, intends to resign from its role effective August 14, 2026. The resignation covers both the parent company and its wholly-owned material subsidiary, RHI Magnesita India Refractories Limited (RHIMIRL). The primary driver for this change is the company’s decision to align its statutory auditor with that of its ultimate holding company, RHI Magnesita N.V., subject to requisite approvals from the Audit Committee and Board of Directors of the respective entities.

The intimation was filed with BSE Limited and the National Stock Exchange of India Limited on August 10, 2026, pursuant to Regulation 30 of the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements Regulations, 2015. Sanjay Kumar, Company Secretary at RHI Magnesita India Limited, confirmed that detailed disclosures required under the Listing Regulations will be submitted once the signed resignation letters are received from the auditor.

Regulatory Compliance and Next Steps

The initial filing serves as a preliminary disclosure to ensure market transparency regarding the change in statutory auditor. Under SEBI guidelines, listed entities must promptly inform stock exchanges of such changes. The company has also uploaded this intimation on its official website for public access.

Investors should note that the resignation process involves further procedural steps, including the submission of signed documents and potentially a general meeting resolution if required by the Companies Act, 2013. The alignment with the global parent’s auditor suggests a strategic move towards centralized audit governance, though no specific reasons beyond this alignment were cited in the initial filing.