Rathi Bars Limited , a prominent player in the steel industry, has received a significant credit rating update. CARE Ratings has assigned a 'BBB' rating with a stable outlook to the company's long-term bank facilities worth Rs 83 crore. This development comes after CRISIL's reaffirmation and subsequent withdrawal of its BBB rating.

Key Highlights

• Credit Rating: CARE BBB; Stable
• Facilities Rated: Long-term bank facilities
• Amount: Rs 83 crore

Company Profile

Rathi Bars Limited, part of the well-established Rathi Group, has been operating in the steel industry for over four decades. The company specializes in manufacturing TMT steel bars and has a strong presence in North India, particularly in Delhi-NCR, Haryana, and Rajasthan.

Manufacturing Capacity

Financial Performance

Rating Rationale

CARE Ratings highlighted several strengths that contributed to the BBB rating:

1. Experienced Promoters: The company benefits from promoters with over 25 years of experience in the steel industry.
2. Established Brand: The 'Rathi' brand has a strong presence in North India.
3. Wide Distribution Network: A robust network of dealers and distributors supports the company's operations.
4. Consistent Revenue Growth: The company has shown steady growth, with revenue increasing from Rs 323.75 crore in FY21 to Rs 496.29 crore in FY25.

However, the rating agency also noted some challenges:

1. Thin Profitability Margins: The company's PBILDT margin ranged from 2.34% to 3.66% over FY21-FY25.
2. Raw Material Price Volatility: The company is exposed to fluctuations in raw material prices.
3. Competitive Industry: The steel industry is highly competitive and cyclical.

Outlook

CARE Ratings has assigned a 'Stable' outlook, reflecting their expectation that Rathi Bars Limited will continue to benefit from its experienced promoters and established brand name. The company's financial risk profile is considered satisfactory, supported by an adequate net worth base and moderate overall gearing.

As Rathi Bars Limited navigates the challenges of a competitive steel industry, its ability to manage raw material price volatility and improve profitability margins will be crucial for maintaining its credit profile in the future.

Rathi Bars Limited, a prominent player in the Indian steel industry, held its 32nd Annual General Meeting (AGM) on September 16, 2025, where shareholders approved several significant resolutions that will shape the company's leadership and governance for the coming years.

Leadership Reappointments

The AGM saw the reappointment of two key executives to the company's leadership team:

1. Mr. Anurag Rathi was reappointed as Managing Director for a five-year term starting January 21, 2026. Mr. Rathi, described as a visionary leader, has been instrumental in establishing Rathi Steels Ltd as a premium construction steel brand in India. His extensive experience and community involvement, including memberships in organizations such as the CII Delhi regional council and PHD, underscore his commitment to both business excellence and social responsibility.

2. Mr. Uddhav Rathi was reappointed as Whole Time Director, also for a five-year term beginning January 21, 2026. Specializing in Marketing and Finance, Mr. Uddhav Rathi has been pivotal in strengthening the company's position in the competitive steel industry.

It's worth noting that Mr. Anurag Rathi and Mr. Uddhav Rathi are related, with Anurag being Uddhav's uncle, bringing a blend of family leadership and professional expertise to the company's top management.

New Board Appointment

The shareholders approved the appointment of Mr. Hukum Singh as a Non-Executive & Non-Independent Director. Mr. Singh, who had been serving as an Additional Director since October 25, 2024, brings a diverse background to the board. His experience includes service in the Indian Air Force and over two decades in the corporate sector, with previous roles at companies such as Avery India Limited, Systopic Lab Limited, and LG Electronics.

Secretarial Auditor Appointment

In a move to ensure continued compliance and governance, the AGM approved the appointment of M/s Siya Ram & Associates as the company's Secretarial Auditor. The firm, which boasts over a decade of experience in professional company secretary services, has been engaged for a five-year term from the financial year 2025-26 to 2029-30.

Conclusion

These appointments and reappointments reflect Rathi Bars Limited's commitment to maintaining strong leadership and governance structures. The mix of long-standing family leadership and new expertise on the board positions the company to navigate the challenges and opportunities in the steel industry in the coming years.

The decisions made at this AGM are expected to provide stability and strategic direction to Rathi Bars Limited as it continues to strengthen its position as a leading steel manufacturer in India.