Rathi Steel and Power Reports Q2 FY26 Results with Revenue Growth
Rathi Steel & Power Limited (RSPL) has released its Q2 FY26 financial results, showing resilience in a challenging market. The company reported revenue of ₹156.40 crores and an EBITDA of ₹6.26 crores, maintaining a 4% EBITDA margin. RSPL's integrated facility in Ghaziabad, with 85,000 TPA steel melting and 200,000 TPA rolling capacity, focuses on stainless steel products and TMT bars. The company is increasing its TMT production capacity utilization from 25% to 40-50%. RSPL benefits from technological advantages, cost leadership, and strategic location near key markets.
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Rathi Steel & Power Limited (RSPL), a veteran in India's steel industry, has reported its financial results for the second quarter of FY26, showcasing stable operational performance amid industry-wide pricing pressures and rising imports.
Financial Highlights
RSPL reported the following key financial metrics for Q2 FY26:
| Metric | Value (₹ Cr) |
|---|---|
| Revenue | 156.40 |
| EBITDA | 6.26 |
| EBITDA Margin | 4.00% |
The company's performance reflects its ability to maintain profitability in a challenging market environment. RSPL has maintained a half-year revenue of ₹311.00 crores despite the industry pressures.
Operational Overview
RSPL operates an integrated steel melting and rolling facility in Ghaziabad, strategically located near the National Capital Region (NCR). The plant boasts:
- Steel melting capacity of 85,000 TPA
- Rolling capacity of 200,000 TPA
This setup provides RSPL with scale, flexibility, and efficiency in its operations.
Product Portfolio and Strategic Focus
The company focuses on two main product categories:
Stainless Steel Products: Including billets, wire rods, and bright bars. RSPL is India's only stainless-steel wire rod producer using direct billet charging technology, ensuring cost and energy savings.
TMT Bars: The company has recently diversified into stainless steel rebars, strengthening its presence in the construction and infrastructure segment.
RSPL is currently ramping up its TMT production capacity utilization from 25% to 40-50%, indicating a strategic focus on increasing output and market share in this segment.
Strategic Advantages
RSPL's performance is underpinned by several strategic advantages:
- Technological Edge: The direct billet charging technology for stainless rods results in 1.25-1.5% savings in energy and yield.
- Cost Leadership: The company benefits from the lowest electricity costs in Uttar Pradesh through open access benefits.
- Strategic Location: Proximity to key markets ensures lower outward freight costs compared to peers.
- Distribution Network: RSPL is focusing on strengthening its distribution networks across North India to enhance market reach and sales.
Market Outlook
Despite industry-wide pricing pressures and rising imports, the company is well-positioned to capitalize on the growing demand in infrastructure, railways, and coastal projects. RSPL's focus on stainless steel products and efforts to increase TMT production capacity utilization demonstrate its commitment to adapting to market conditions and pursuing growth opportunities.
Conclusion
Rathi Steel & Power Limited's Q2 FY26 results demonstrate the company's resilience and operational efficiency in a challenging market environment. With its strategic focus on increasing production capacity, strengthening distribution networks, and maintaining a diverse product portfolio, RSPL appears well-equipped to navigate industry pressures and leverage growth opportunities in India's expanding steel market.
Historical Stock Returns for Rathi Steel & Power
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.15% | +0.77% | +0.73% | -11.58% | -36.88% | +733.33% |
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