Rathi Steel & Power Ltd (504903)
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Rathi Steel's revenue was ₹193 Cr (+24.5% year on year, -20.9% on the previous quarter), and net profit ₹3.5 Cr (+84.1% year on year); the operating margin was 3.9%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹193 | +24.5% | -20.9% |
| Operating profit | ₹7.5 | +22.7% | -23.1% |
| Net profit | ₹3.5 | +84.1% | -53.3% |
| EPS (₹) | 0.40 | +81.8% | -53.5% |
| Operating margin | 3.9% | — | — |
📢 Recent Corporate Announcements
Rathi Steel & Power Ltd has received a tax demand order of ₹59,44,859 under Section 74 of the CGST Act, 2017. The order was issued by the Office of the Additional Commissioner, GST & Central Excise, Rourkela Commissionerate, Odisha on October 8, 2026, and received by the company on October 9, 2026. The demand pertains to alleged interest on delayed payments of GST liability for the month of January 2021. The company stated that the demand is not maintainable and plans to explore legal remedies, foreseeing no material operational or financial impact.
- Tax demand order received amounting to INR 59,44,859 under Section 74 of the CGST Act, 2017.
- Order passed by Additional Commissioner, GST & Central Excise, Rourkela Commissionerate on October 8, 2026.
- Dispute relates to interest on alleged delayed GST liability payments for January 2021.
- Company received the notice on October 9, 2026, and intends to contest it through legal remedies.
Rathi Steel and Power reported preliminary operational numbers for Q2 FY27, with revenue exceeding ₹200 Cr, marking a 30%+ YoY growth compared to ₹156.43 Cr in Q2 FY26. Sales volume rose 28.86% YoY to 32,028 MT from 24,855 MT. The company also secured an interest rate reduction of approximately 450 bps with its existing lender while raising additional growth capital. For FY27, management is targeting rolling mill capacity utilization of 55–60% compared to ~51–52% in FY26.
- Q2 FY27 revenue exceeded ₹200 Cr, growing over 30% YoY from ₹156.43 Cr
- Sales volume reached 32,028 MT, up 28.86% YoY from 24,855 MT
- Negotiated ~450 bps interest rate reduction with existing lender
- Targeting FY27 rolling mill capacity utilization of 55–60% vs ~51–52% in FY26
- FY26 full-year baseline reported at ₹716.49 Cr total income, ₹28.90 Cr EBITDA, and ₹12.87 Cr PAT
The Board of Directors of Rathi Steel and Power Limited approved a request from DBG Leasing and Housing Limited to reclassify from 'Promoter & Promoter Group' to 'Public' category under Regulation 31A of SEBI LODR. DBG Leasing holds under 10% voting rights and underwent CIRP under IBC, with a Resolution Plan approved on June 13, 2025, handing management control to new promoters. DBG has no special rights, board representation, or management control in Rathi Steel. The reclassification remains subject to approvals from shareholders and stock exchanges.
- Board approved reclassification request dated September 19, 2026, from DBG Leasing and Housing Limited
- DBG Leasing holds less than 10% voting rights in Rathi Steel and Power Limited
- DBG Leasing underwent CIRP with Resolution Plan approved by NCLT on June 13, 2025
- Proposed reclassification requires subsequent approval from shareholders and stock exchanges
Rathi Steel & Power Limited has released the notice convening its 55th Annual General Meeting on September 29, 2026, along with its FY25-26 Annual Report. For FY26, the company reported a top-line growth of over 42% YoY to Rs 716.49 crore, with EBITDA expanding ~19% YoY to Rs 28.90 crore. The report highlighted capacity utilization running at 51-53%, leaving operational headroom for volume expansion. Additionally, the company completed trial runs of the direct charging process for TMT bars and sourced over 25% of power from green energy.
- FY26 revenue increased by over 42% YoY to Rs 716.49 crore
- FY26 EBITDA rose by ~19% YoY to Rs 28.90 crore (including other income)
- Capacity utilization currently stands at 51-53%, providing headroom for volume ramp-up
- Green power purchased through open access contributed over 25% of total power consumption
- 55th AGM is scheduled for Tuesday, September 29, 2026 via Video Conferencing
Rathi Steel & Power reported a 24.6% YoY rise in total income to Rs 193.67 Cr and an 84.5% YoY increase in PAT to Rs 3.48 Cr for Q1. Total sales volume grew 30% YoY to 28,372 MT, driven by a doubling of TMT bar volumes to 18,677 MT. Stainless steel volumes contracted by 10-12% YoY due to elevated ocean freights and geopolitical headwinds affecting export-oriented end-users. The company plans an annual capex of Rs 15 Cr+ in FY27 to be funded via internal accruals.
- Total income rose 24.6% YoY to INR 193.67 Cr, while EBITDA rose 24.83% YoY to INR 7.77 Cr.
- PAT surged 84.5% YoY to INR 3.48 Cr, with PAT margins improving by 58 bps to 1.8%.
- Total sales volumes increased 30% YoY to 28,372 MT, led by TMT bar volume growth to 18,677 MT.
- Management targets FY27 rolling mill capacity utilization to exceed 60% (vs 51-52% in FY26).
- FY27 capex targeted at Rs 15 Cr+ for plant modernization and direct charging, funded via internal accruals.
Rathi Steel and Power Limited has uploaded the audio recording of its Earnings Conference Call held on August 18, 2026. The call discussed the unaudited standalone financial results for the quarter ended June 30, 2026, and concluded at 3:51 pm IST. The audio is accessible on the company's website pursuant to SEBI Listing Regulations. For context, the company reported Q1 FY27 revenue of Rs 193.41 Cr and net profit of Rs 3.48 Cr.
- Audio recording of Q1 FY27 earnings call uploaded to the company website
- Earnings conference call was held and concluded at 3:51 pm IST on August 18, 2026
- Pertains to financial performance for the quarter ended June 30, 2026
- Filing submitted in compliance with Regulation 30 of SEBI LODR
Rathi Steel and Power reported a 24.63% YoY increase in total income to ₹193.67 Cr for Q1 FY27, compared to ₹155.40 Cr in Q1 FY26. Net profit (PAT) grew 84.56% YoY to ₹3.48 Cr, supported by a 30% YoY increase in sales volumes to 28,372 MT. EBITDA expanded 24.83% YoY to ₹7.77 Cr, with EBITDA margins remaining flat at 4.01%. While YoY growth was robust, revenue moderated sequentially from ₹244.44 Cr in Q4 FY26 due to softer steel realizations.
- Total income increased 24.63% YoY to ₹193.67 Cr in Q1 FY27 from ₹155.40 Cr in Q1 FY26
- Net profit (PAT) surged 84.56% YoY to ₹3.48 Cr versus ₹1.89 Cr in the year-ago quarter
- Total sales volumes increased by approximately 30% YoY to 28,372 MT
- EBITDA rose 24.83% YoY to ₹7.77 Cr, maintaining an EBITDA margin of 4.01%
- Installed rolling mill capacity stands at 2,00,000 TPA and steel melting capacity at ~85,000 TPA
Rathi Steel & Power Ltd has scheduled its earnings conference call for Tuesday, August 18, 2026, at 3:00 PM IST to discuss the unaudited financial results for the quarter ended June 30, 2026. This follows a fiscal year (FY26) where the company reported a revenue of ‡716 Cr and a PAT of ‡13 Cr. Key management, including Promoter Mr. Udit Rathi and President Mr. Rajesh Jain, will be present to discuss operational performance. Investors will likely look for updates on the utilization of the 200,000 TPA rolling mill and the progress of the high-margin stainless steel rebar segment.
- Earnings call scheduled for August 18, 2026, at 3:00 PM IST via Kirin Advisors.
- Management to discuss unaudited financial results for the quarter ended June 30, 2026.
- Company currently operates a 200,000 TPA rolling mill and 85,000 TPA steel melting capacity.
- TTM revenue stands at ‡716 Cr with an operating profit margin of 4.0%.
- Management participants include the Promoter, President, and AVP of Growth & Strategy.
Rathi Steel & Power reported a strong Q1 FY27 with revenue growing 24.6% YoY to ₹193.67 Cr. Net profit surged 84.6% YoY to ₹3.48 Cr, significantly outpacing revenue growth due to improved operational leverage. Total sales volumes increased 30% YoY to 28,372 MT, led by the TMT rebar segment where volumes more than doubled. Despite flat EBITDA margins at 4.01%, the company achieved a 58 bps improvement in PAT margins to 1.80%.
- Total sales volumes increased ~30% YoY to 28,372 MT compared to 21,864 MT in Q1 FY26
- TMT rebar sales volumes more than doubled to 18,677 MT from 8,295 MT in the previous year
- Net Profit (PAT) rose 84.56% YoY to ₹3.48 Cr from ₹1.89 Cr
- Revenue from operations grew 24.63% YoY to ₹193.67 Cr
- PAT margin improved by 58 basis points to 1.80% from 1.21% YoY
Rathi Steel & Power reported a strong year-on-year performance for Q1 FY27, with revenue from operations growing 24.5% to ₹193.41 Cr. Net profit surged 84% YoY to ₹3.48 Cr, although it declined sequentially from ₹7.45 Cr in the preceding March quarter. Operating margins remain thin at approximately 4%, consistent with the company's historical TTM performance. The company maintained its focus on the steel segment without any extraordinary items impacting the bottom line.
- Revenue from operations increased to ₹193.41 Cr, up 24.5% from ₹155.29 Cr in Q1 FY26.
- Net profit grew 84.1% YoY to ₹3.48 Cr compared to ₹1.89 Cr in the same period last year.
- Finance costs increased to ₹2.09 Cr from ₹1.75 Cr YoY, reflecting higher working capital or debt servicing needs.
- Earnings Per Share (EPS) improved to ₹0.40 from ₹0.22 in the year-ago quarter.
- Total expenses rose to ₹190.19 Cr, with cost of materials consumed accounting for 84.5% of total revenue.
Rathi Steel & Power reported a strong year-on-year performance for Q1 FY27, with revenue from operations growing 24.5% to ₹193.41 Cr compared to ₹155.29 Cr in Q1 FY26. Net profit saw a significant jump of 84% YoY, reaching ₹3.48 Cr. However, on a sequential basis, performance softened as revenue declined 20.9% and profit fell 53% from the preceding March 2026 quarter. The company maintains a lean balance sheet with a debt-to-equity ratio of 0.30.
- Revenue from operations increased 24.5% YoY to ₹193.41 Cr.
- Net profit grew 84.1% YoY to ₹3.48 Cr from ₹1.89 Cr in the year-ago period.
- Earnings Per Share (EPS) improved to ₹0.40 from ₹0.22 YoY.
- Total expenses for the quarter stood at ₹190.19 Cr, representing 98.3% of total revenue.
- Finance costs increased to ₹2.09 Cr from ₹1.75 Cr in Q1 FY26.
Rathi Steel & Power Ltd has scheduled a board meeting for August 13, 2026, to approve its unaudited standalone financial results for the quarter ended June 30, 2026. This follows a strong performance in the previous quarter (Mar 2026), where the company reported revenue of ₹244.44 crore and a net profit of ₹7.45 crore. Investors will be monitoring if the company can maintain its TTM revenue momentum of ₹716 crore and improve its operating margins, which stood at 4.0% in FY26. The trading window for designated persons has been closed since July 1, 2026, in compliance with SEBI regulations.
- Board meeting scheduled for August 13, 2026, to approve Q1 FY27 results.
- Financial results pertain to the quarter ended June 30, 2026.
- Trading window closed from July 1, 2026, until 48 hours after the results declaration.
- Company reported a TTM revenue of ₹716 crore for the period ending March 2026.
- Previous quarter (Mar 2026) net profit stood at ₹7.45 crore.
Rathi Steel & Power reported a strong start to FY27 with sales volumes reaching 28,372 MT, a 30% increase over Q1 FY26. Revenue grew by over 24% to exceed ₹193 Cr, driven primarily by the TMT rebar segment where volumes more than doubled to 18,677 MT. This quarterly revenue represents approximately 27% of the total income reported in FY26 (₹716.49 Cr), indicating a positive trajectory. The company is specifically targeting the 550D TMT bar segment to cater to major real estate developers while managing volatile energy costs.
- Total sales volume grew ~30% YoY to 28,372 MT in Q1 FY27 from 21,864 MT in Q1 FY26
- Quarterly revenue exceeded ₹193 Cr, representing a growth of more than 24% year-on-year
- TMT rebar segment volumes more than doubled from 8,295 MT to 18,677 MT during the quarter
- Q1 FY27 revenue of ₹193 Cr is approximately 27% of the full-year FY26 income of ₹716.49 Cr
- Company maintains a rolling capacity of 2,00,000 tonnes per annum and steel melting capacity of 85,000 tonnes per annum
Financial Performance
Revenue Growth by Segment
The company reported Net Sales of INR 156.30 Cr for Q2 FY26 and INR 311.59 Cr for H1 FY26. While segment-specific growth percentages are not explicitly detailed, the company is shifting focus toward high-margin stainless steel products and ramping up its TMT bars facility, which currently operates partly on a conversion basis.
Geographic Revenue Split
The company primarily operates in North India, leveraging a well-distributed dealer network across the region for B2C access and targeting the NCR region for its 550/550 D TMT grade products.
Profitability Margins
Net Profit Margin (NPM) stood at 1.04% for Q2 FY26 and 1.13% for H1 FY26. Excluding exceptional items, the NPM for FY 2024-25 was 1.83%, an improvement from 0.77% in FY 2023-24, driven by cost optimization projects.
EBITDA Margin
EBITDA margin was 4.07% (INR 6.37 Cr) in Q2 FY26 and 4.04% (INR 12.60 Cr) in H1 FY26. The operating profit margin for FY 2024-25 was 4.36%, up from 4.19% in FY 2023-24 due to the implementation of hot charging technology.
Capital Expenditure
The company is deploying internal accruals for balancing capital expenditure to replicate the direct charging model in TMT operations. Specific historical INR Cr values for total capex were not disclosed, but internal accruals are the primary funding source.
Credit Rating & Borrowing
The company has resumed banking relationships to fund future growth. Interest costs for H1 FY26 were INR 3.87 Cr. The Debt Equity Ratio stood at 0.28 as of March 31, 2025, compared to NIL in the previous year as the company reintroduced debt into its capital structure.
Operational Drivers
Raw Materials
Key raw materials include stainless steel scrap and billets. Raw material consumption (Cost of Consumption) was INR 243.58 Cr in H1 FY26, representing approximately 78% of total income.
Capacity Expansion
Current installed capacity includes 85,000 TPA for steel melting and 200,000 TPA for rolling. The company is currently backward integrated to 40% and aims to sweat existing assets before expanding further.
Raw Material Costs
Cost of consumption was INR 118.74 Cr in Q2 FY26 (75.9% of sales). The company uses a 'hot charging' process for SS billets which reduces fuel costs and scale loss, directly improving margins.
Manufacturing Efficiency
The company is the only player in India using direct billet charging for stainless steel wire rods, leading to significant fuel savings and efficiency gains. Capacity utilization is being ramped up to divide fixed overheads across higher volumes.
Logistics & Distribution
The company utilizes a legacy dealer network across North India. Distribution costs are managed through strategic plant location in Ghaziabad, near the high-demand NCR market.
Strategic Growth
Growth Strategy
Growth will be achieved by increasing capacity utilization of the 200,000 TPA rolling mill, transitioning TMT operations from conversion-based to backward-integrated, and pioneering the retail market for stainless steel rebars (SS rebars) following recent BIS certification.
Products & Services
Stainless steel billets, wire rods, bright bars, TMT bars (FE550/550D), and stainless steel reinforcement bars (SS rebars).
Brand Portfolio
Rathi (used under license from the Rathi family).
New Products/Services
Stainless steel rebars for retail and infrastructure; expected to be a high-margin contributor as the company is an early mover in this segment.
Market Expansion
Targeting nationwide rollout of stainless steel rebars leveraging the existing North Indian dealer network and expanding into coastal/infrastructure projects where corrosion resistance is critical.
Strategic Alliances
The company collaborates with recognized downstream stainless steel manufacturers and a large network of distributors; specific partner names were not disclosed.
External Factors
Industry Trends
The Indian steel industry is growing, supported by a 12% import duty and the PLI Scheme for Specialty Steel, which has seen industry-wide investment commitments of INR 29,530 Cr.
Competitive Landscape
Faces competition from large integrated players and companies that recently acquired assets through the IBC process and are now ramping up supply.
Competitive Moat
The 80-year 'Rathi' brand legacy provides a strong retail moat. The direct billet charging technology for stainless steel provides a sustainable cost advantage of approximately 2-3% over competitors using traditional reheating.
Macro Economic Sensitivity
Highly sensitive to infrastructure spending and government policies like the Vehicle Scrappage Policy and Smart Cities initiatives which drive steel demand.
Consumer Behavior
Shift toward high-strength (FE550D) and corrosion-resistant (Stainless Steel) rebars in the construction and real estate sectors.
Geopolitical Risks
Global overcapacity and high levels of imports (dumping) pose a threat to domestic price stability and profitability.
Regulatory & Governance
Industry Regulations
Operations are subject to Ministry of Steel safety guidelines (16 new guidelines introduced July 2024) and BIS certification standards for specialized steel products.
Environmental Compliance
The company faced a temporary resumption order from regulatory authorities regarding environmental/operational issues, which has since been resolved with conditions for compliance.
Taxation Policy Impact
Tax expense for H1 FY26 was reported as 0.00, suggesting the utilization of brought-forward losses or specific tax incentives.
Legal Contingencies
The company successfully resolved a regulatory notification that had briefly impacted operations; no other major pending court case values were disclosed.
Risk Analysis
Key Uncertainties
Cyclicality of the steel industry and volatility in raw material/energy prices could impact margins by 2-4% in a downturn.
Geographic Concentration Risk
High concentration in North India, particularly the NCR region, making it vulnerable to regional economic shifts or construction bans.
Third Party Dependencies
Dependency on the Rathi family for the 'Rathi' brand license, although current royalty is negligible (INR 500/annum).
Technology Obsolescence Risk
Risk of new construction technologies reducing overall steel intensity in infrastructure projects.
Credit & Counterparty Risk
The company performs internal research on client financial health to mitigate credit risk; Debtor Turnover Ratio is 24.52.
