Rathi Steel & Power Limited has achieved a significant legal victory with the appellate authority dropping a GST demand of ₹2.58 crores along with associated penalties and interest. The Commissioner (Appeals) GST, CX & Customs, Bhubaneswar, Odisha allowed the company's appeal and completely dropped the demand that was originally raised by tax authorities.

Appeal Outcome Details

The appellate authority delivered a favorable ruling for the company, completely setting aside the original GST demand order. The Commissioner (Appeals) issued the order allowing the appeal and dropping all financial demands against the company.

Background of Original GST Demand

The original demand was raised by the Additional Commissioner, GST & Central Excise, Rourkela, Odisha under Section 73(9) CGST/OGST Act 2017. The company had previously disclosed receiving this demand order and had indicated plans to challenge it through appropriate legal channels.

Previous GST Matter Resolution

This successful appeal outcome follows the company's ongoing efforts to address GST-related matters. The company had previously received another GST demand notice of ₹5.73 crores from Ghaziabad tax authorities, which involved issues related to E-Way Bills and Input Tax Credit claims.

Financial and Operational Impact

With the appellate authority dropping the ₹2.58 crore demand, the company faces no financial impact from this particular GST matter. The successful appeal demonstrates the company's ability to effectively challenge tax demands through proper legal channels.

Regulatory Compliance

The company has fulfilled its disclosure obligations under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations 2015. This update was provided in furtherance to the original disclosure made when the demand was first received, ensuring complete transparency with stakeholders regarding the resolution of this tax matter.

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:

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:

1. 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.

2. 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.