Rain Industries , a leading global producer of carbon and advanced materials, has reported its financial results for the third quarter, showcasing signs of recovery in its carbon business and unveiling ambitious expansion plans for its cement operations.

Financial Performance

The company reported an adjusted EBITDA margin of 14.5% on revenue of ₹44.76 billion for Q3. While this marks an improvement from previous quarters, management indicated that the company has not yet achieved its normalized quarterly EBITDA target.

Carbon Segment Recovery

Rain's carbon segment, which contributes significantly to the company's revenue, showed margin recovery in Q2 and Q3 after facing challenges from raw material pricing and Battery Anode Materials (BAM) impact. Both the Special Economic Zone (SEZ) and Domestic Tariff Area (DTA) plants are now operating at approximately 90% capacity following regulatory changes that allowed for Green Petroleum Coke (GPC) imports.

Cement Expansion Plans

Rain Industries has announced a ₹757 crore brownfield cement expansion project. The plan includes:

• Adding 1.5 million tonnes of clinker capacity
• Increasing cement capacity by 2.3 million tonnes
• Targeting commissioning in Q4 2027
• Projected Internal Rate of Return (IRR) of 14-16%

The expansion will also incorporate a 7MW Waste Heat Recovery (WHR) system, aiming to increase the company's green power share to 45-50% by 2028.

Debt Reduction Progress

The company reported an improvement in its net debt to EBITDA ratio, which decreased to 3.3x in Q3 from 3.9x in Q4 of the previous year. Management expects to approach a 3x ratio during the current year.

Advanced Materials and Battery Technology

Rain Industries is actively pursuing opportunities in the battery materials space:

• Secured CAD 860,000 in government funding for battery anode materials (BAM) R&D collaboration with Northern Graphite
• Total project budget of CAD 3.1 million
• Focus on transforming natural graphite processing by-products into high-performance, battery-grade anode materials

Energy Costs and Market Dynamics

Management noted that energy costs in Europe "remain manageable," with natural gas prices currently ranging between €30 to €40 per MMBtu, lower than recent peak levels but still above historical averages.

Future Outlook

While not providing specific guidance, Rain Industries' management expressed confidence in the company's positioning across both Carbon and Advanced Materials segments. The focus remains on specialty applications, proactive supply chain strategies, and capitalizing on emerging opportunities in the battery materials and sustainable cement production sectors.

As Rain Industries continues to navigate global market challenges and pursue strategic growth initiatives, investors will be watching closely to see if the company can achieve its normalized EBITDA targets and successfully execute its expansion plans in the coming quarters.

Rain Industries Limited , a leading vertically integrated global producer of essential raw materials, has announced a significant expansion of its cement plant and reported its third quarter results for 2025.

Cement Plant Expansion

The company's Board of Directors has approved a brownfield expansion of its cement plant at Ramapuram Village, Telangana, through its wholly-owned subsidiary Rain Cements Limited. The expansion will increase:

• Clinker capacity from 1.0 million tonnes to 2.5 million tonnes per annum
• Cement capacity from 1.5 million tonnes to 3.8 million tonnes per annum
• Waste Heat Recovery Power Plant capacity from 5.0 MW to 12.0 MW

The project, estimated to cost Rs 757.00 crores, is targeted for commissioning in Q4 2027. It will be financed primarily through internal accruals, supplemented by debt as required.

This strategic expansion aims to capitalize on India's projected cement demand growth of 6-8% CAGR between 2024-2030. It will enhance the plant's cost efficiency through economies of scale and incorporate state-of-the-art, energy-efficient technologies.

Q3 2025 Financial Results

For the quarter ended September 30, 2025, Rain Industries reported:

The company's performance showed significant improvement compared to the same period last year, with revenue growth across all segments.

Segment Performance

Carbon Segment

• Revenue: Rs 34,665.98 million (up 15.66% YoY)
• Adjusted EBITDA: Rs 5,135.89 million (up 108.96% YoY)

Advanced Materials Segment

• Revenue: Rs 9,977.34 million (up 6.55% YoY)
• Adjusted EBITDA: Rs 844.27 million (up 79.12% YoY)

Cement Segment

• Revenue: Rs 2,759.41 million (down 1.31% YoY)
• Adjusted EBITDA: Rs 191.61 million (compared to a loss in Q3 2024)

The Cement segment experienced a slight decline in revenue due to extended monsoon conditions in South India, which affected volumes. However, the reduction in GST rates from 28% to 18%, effective September 22, 2025, is expected to stimulate demand in the housing and infrastructure sectors.

Other Developments

• The company initiated a joint development agreement with Northern Graphite to develop alternative materials for the energy storage market.
• Rain Industries entered the North American Meso-phase Carbon Micro Bead (MCMB) sector, targeting the rechargeable battery market.
• The company maintains a strong liquidity position of $388.00 million with no major term debt maturities until October 2028.

Jagan Mohan Reddy Nellore, Managing Director of Rain Industries Limited, commented, "Our third quarter results reflect our progress towards restoring normalized operating margins and stabilizing overall performance. While we face ongoing challenges, including geopolitical tensions and economic uncertainties, we remain agile and committed to mitigating risks and protecting margins as we move forward."

Rain Industries continues to focus on operational efficiencies and strategic investments to capitalize on market opportunities and drive long-term growth.