NewsEarningsRasi Electrodes Reports 15% Profit Growth in Q1 FY2026, Authorizes Investments Up to Rs 15 CroreRasi Electrodes Reports 15% Profit Growth in Q1 FY2026, Authorizes Investments Up to Rs 15 Crore
Rasi Electrodes Limited, a welding electrodes manufacturer, posted a 15% increase in net profit to Rs 125.73 lakhs for Q1 FY2026, despite an 8.6% decline in revenue to Rs 1,942.41 lakhs. Other income rose significantly to Rs 37.47 lakhs. The company's Board authorized investments up to Rs 15 crores and loans up to Rs 5 crores. No dividend was proposed, and the 31st AGM is scheduled for September 29, 2025. The company also reported a small turnover from a new grocery trading segment.
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Rasi Electrodes Limited , a manufacturer of welding electrodes and CCMS wire, has announced its financial results for the first quarter ended June 30, 2025, showing a significant increase in profitability despite a slight decline in revenue.
Financial Highlights
- Net profit for Q1 FY2026 rose to Rs 125.73 lakhs, marking a 15% increase from Rs 109.34 lakhs in the same quarter last year.
- Revenue from operations declined to Rs 1,942.41 lakhs from Rs 2,125.02 lakhs year-over-year, representing an 8.6% decrease.
- Other income saw a substantial increase to Rs 37.47 lakhs, compared to Rs 6.63 lakhs in the corresponding quarter of the previous year.
Key Financial Metrics
| Particulars (in Lakhs) | Q1 FY2026 | Q1 FY2025 | % Change |
|---|---|---|---|
| Revenue from Operations | 1,942.41 | 2,125.02 | -8.6% |
| Other Income | 37.47 | 6.63 | 465.2% |
| Total Revenue | 1,979.88 | 2,131.65 | -7.1% |
| Net Profit | 125.73 | 109.34 | 15.0% |
| EPS (Basic & Diluted) | 0.40 | 0.35 | 14.3% |
Corporate Decisions and Outlook
The Board of Directors of Rasi Electrodes Limited convened on August 8, 2025, and made several key decisions:
Annual General Meeting: The company's 31st Annual General Meeting is scheduled for September 29, 2025.
Dividend: No dividend has been proposed for the financial year.
Board Reappointment: Non-Independent Director B Ranjit Kumar Kothari will seek re-election at the upcoming AGM.
Investment Authorization: The Board has authorized Managing Director B Popatlal Kothari to invest surplus funds up to Rs 15 crores in various instruments, including inter-corporate deposits, bank deposits, mutual funds, and equity shares of listed or unlisted companies.
Loan Provision: Mr. Kothari has been authorized to provide loans and advances up to Rs 5 crores to non-related entities for business purposes.
Business Segments
While Rasi Electrodes primarily operates in the welding electrodes and CCMS wire manufacturing sector, the company has also ventured into a small trading business in groceries. This new segment generated a turnover of Rs 3.93 lakhs during the quarter, indicating the company's efforts to diversify its revenue streams.
The company's financial results demonstrate resilience in profitability despite challenging market conditions affecting revenue. The significant increase in other income and the authorization for substantial investments suggest a strategic approach to managing finances and exploring growth opportunities.
Historical Stock Returns for Rasi Electrodes
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.61% | -0.17% | -6.05% | -0.39% | -54.24% | +555.56% |
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