Rain Industries Q2 FY26 EBITDA Up 61% YoY

Date: August 6, 2026

Year-to-date Total Recordable Incident Rate (TRIR) was 0.18 at end of Q2 FY26, described as a world-class safety result.
Several facilities reached highest number of days without a recordable incident, reflecting strong local ownership and disciplined execution.

Consolidated Results Q2 FY26:

Revenue: ₹51.67 billion (17% increase YoY)
Adjusted EBITDA: ₹9.94 billion (61% increase YoY)
Improvement driven by better pricing, favorable inventory pricing (benefit of lower-cost inventory from earlier quarter), disciplined cost management, and positive foreign exchange translation benefits.

Segment Performance:

Carbon Segment:

Revenue: ₹37.70 billion (18.1% increase YoY)
Adjusted EBITDA: Increased by ₹2.96 billion (57% improvement YoY)
Performance supported by steady Distillation business, favorable inventory pricing, cost management, and forex benefits (Euro appreciated 13.5%, USD appreciated 10.7% against INR)
Calcination volumes declined due to shipment timing and shifting sales from Middle East to other regions
Distillation volumes increased for few products due to additional demand for carbon black oil

Advanced Materials Segment:

Revenue: ₹10.73 billion (31.2% increase YoY)
Adjusted EBITDA: Increased by ₹0.91 billion (118% improvement YoY)
Volume growth driven by Engineered Products with improved demand and customer engagement
Improvement reflects better margins from disciplined cost and pricing management, favorable currency movements

Cement Segment:

Revenue: Declined 8.9% YoY
EBITDA: Declined by ₹0.10 billion YoY
Performance impacted by lower volumes due to intensified competition in South India following acquisitions by pan-India players
Elevated logistics and fuel costs weighed on operating margins
Demand conditions across South India remain mixed with regional variations in infrastructure expenditure

Cash: $172 million at end Q2 FY26 (slight increase over previous quarter)
Undrawn revolvers: $141 million
Gross debt: $1.064 billion (including $257 million working capital borrowings)
Net debt: $892 million
Net debt-to-EBITDA ratio: 2.8x (based on LTM EBITDA of $322 million)
Working capital increase primarily related to higher inventory levels, including prudent safety stock built in response to supply chain uncertainty

Operating cash inflows: ₹1.88 billion (driven by higher profitability)
Investing cash outflows: ₹0.07 billion (maintenance capex of ₹2.43 billion offset by ₹2.34 billion in net maturities and interest income from fixed deposits)
Financing cash inflows: ₹0.47 billion (proceeds from short-term borrowings offset with interest payments and lease obligations)

Geopolitical Impact:

Persian Gulf conflict significantly impacted global industries upstream, downstream, and alongside RAIN's business
Hostilities and trade route closures affected crude oil quality impacts on green petroleum coke (GPC) quality
Logistics disruptions due to ongoing hostilities in Persian Gulf affected shipment patterns
Company built safety stock of raw material inventory in India during Q2

Industry Dynamics:

Calcination industry facing higher raw material costs as demand for GPC increases from Battery Anode Materials industry
Battery anode production requires premium anode-grade GPC with very low sulphur and low metallic impurities
Aluminum industry can utilize wider spectrum of feedstocks through careful blending and calcination
Global aluminum industry represents approximately 50% of RAIN's revenue
Several smelting facilities in Middle East region remain fully or partially offline due to conflict impact

Outlook:

Management maintains cautious optimism with focus on margin recovery, cost optimization, working capital normalization, and interest cost reduction
Continued monitoring of geopolitical events, commodity markets, and potential price volatility
Expect some moderation in inventory levels during second half of 2026 subject to market conditions
Next significant term debt maturity occurs in October 2028

Capital expenditures including plant turn-around costs: $26 million for first half of 2026