Rain Industries Limited , a leading global producer of carbon-based and advanced materials, has announced an interim dividend and reported robust financial results for the second quarter.

Interim Dividend Announcement

Rain Industries Limited will pay an interim dividend of Rs 1.00 per equity share for the financial year ending December 31, 2025, to shareholders on August 29, 2025.

Q2 Financial Highlights

Rain Industries demonstrated strong performance in the second quarter:

• Revenue from operations increased to Rs 44.01 billion, up 17% compared to the previous quarter and 8% year-over-year.
• Adjusted EBITDA rose to Rs 6.17 billion, marking a significant 42% increase quarter-over-quarter and 26% year-over-year.
• The company reported an adjusted net profit after tax of Rs 0.50 billion.
• Adjusted earnings per share stood at Rs 1.47.

Segment Performance

Rain Industries operates three business segments:

Carbon Segment

Advanced Materials Segment

Cement Segment

Financial Position

Rain Industries maintains a strong liquidity position of $339.00 million, including:

• $191.00 million in cash
• $148.00 million in undrawn loan facilities

The company has no term debt maturities until October 2028, indicating a stable financial outlook.

Outlook

The company's strong financial performance and dividend announcement suggest a positive outlook. The robust growth in revenue and adjusted EBITDA across all segments indicates that Rain Industries is well-positioned in its markets.

The company's solid liquidity position and lack of near-term debt maturities provide financial flexibility to pursue growth opportunities and navigate potential market challenges.

Rain Industries Limited , a leading player in the carbon, advanced materials, and cement sectors, has maintained its 'IND A/Stable' credit rating from India Ratings and Research for its term loan of INR 1,700 million. The affirmation comes despite a challenging year for the company, reflecting its stable financial position and positive outlook for the coming years.

Financial Performance

The company faced headwinds, with consolidated revenue declining by 15% to INR 153,744.00 million, down from INR 181,415.00 million in the previous year. EBITDA margins also contracted, falling to 8.18% from 9.33% in the previous year. However, the rating agency expects revenue and profitability to improve over the medium term, driven by economies of scale from higher utilization levels.

Improved Raw Material Allocation

A key factor supporting the stable outlook is the increased allocation of green petroleum coke (GPC) import quota for the upcoming fiscal years. This is expected to boost capacity utilization to 85%-90% from current levels, particularly benefiting the company's carbon segment. The enhanced quota, along with the ability to import GPC and calcined petroleum coke (CPC) for its Special Economic Zone (SEZ) unit, is likely to drive operational improvements.

Segment Performance

The carbon segment, while still the largest contributor, saw a slight decrease in its share of revenue and EBITDA compared to the previous year. The advanced materials segment showed improvement, while the cement segment faced challenges, reporting an EBITDA loss.

Debt and Leverage

Rain Industries' net leverage increased to 5.43x, up from 3.97x in the previous year. However, the rating agency anticipates this to normalize below 4.0x in the future, with the company already showing signs of improvement as net leverage reduced to 5.18x in the most recent quarter.

Future Outlook

India Ratings expects Rain Industries' return on capital employed (ROCE) to remain stable at 7%-8% in the coming years, supported by normalizing operating profits and reduced impairment losses. The company's focus on debt reduction and minimal planned capital expenditure should further strengthen its financial position.

Conclusion

Despite the challenges faced, Rain Industries' affirmed credit rating underscores the company's resilience and the positive impact of increased raw material allocation. As the company leverages higher capacity utilization and focuses on operational efficiencies, it is well-positioned to navigate the evolving market conditions and potentially improve its financial performance in the coming years.