Rathi Bars Limited has informed stock exchanges about search and seizure operations conducted by the Income Tax Department under Section 132 of the Income Tax Act, 1961. The company disclosed this development through a regulatory filing under Regulation 30 of SEBI Listing Regulations on December 22, 2025.

Search Operations Details

The Income Tax Department initiated the search and seizure action on December 15, 2025, targeting the company and its directors Mr. Anurag Rathi (DIN: 00063345) and Mr. Uddhav Rathi (DIN: 06604905). The operations were conducted simultaneously across multiple strategic locations, including the company's premises and directors' residences, and concluded on December 19, 2025.

Premises Covered and Timeline

The search operations covered three key locations with varying durations:

Company and Directors Involved

The search action specifically targeted:

• Company: Rathi Bars Limited (CIN: L74899DL1993PLC054781)
• Directors: Mr. Anurag Rathi and Mr. Uddhav Rathi
• Locations: Corporate offices, manufacturing facilities, and personal residences

The operations at the factory premises in Rajasthan extended until December 18, 2025, while the search at the directors' residence concluded on the same day it began. The registered office search continued for the longest period, concluding on December 19, 2025.

Regulatory Compliance

Rathi Bars Limited has fulfilled its disclosure obligations by informing BSE Limited about the search and seizure action. Company Secretary and Compliance Officer Bharti Chitkara signed the regulatory filing, ensuring compliance with SEBI Listing Regulations. The disclosure was made to maintain transparency with stakeholders and meet regulatory requirements under the securities market framework.

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.