Financial Performance - Q4 FY26

Income Statement Highlights (₹ crore):

  • Operating Income: ₹244.44 crore (vs ₹149.57 crore in Q4 FY25)
  • Other Income: ₹0.12 crore (vs ₹0.16 crore in Q4 FY25)
  • Total Income: ₹244.57 crore, representing 63.34% YoY growth
  • Raw Material Expenses: ₹112.63 crore (vs ₹202.85 crore in Q4 FY25)
  • Employee Benefit Expenses: ₹3.28 crore (vs ₹4.64 crore in Q4 FY25)
  • Other expenses: ₹25.77 crore (vs ₹27.19 crore in Q4 FY25)
  • Total Expenditure: ₹141.67 crore (vs ₹234.68 crore in Q4 FY25)
  • EBITDA: ₹8.06 crore (vs ₹9.89 crore in Q4 FY25), representing 22.72% YoY growth
  • Finance Costs: ₹1.72 crore (vs ₹1.67 crore in Q4 FY25)
  • Depreciation: ₹2.54 crore (vs ₹0.77 crore in Q4 FY25)
  • PBT: ₹3.80 crore (vs ₹7.45 crore in Q4 FY25), representing 95.84% YoY growth
  • Tax: ₹0.00 crore (vs ₹0.00 crore in Q4 FY25)
  • PAT: ₹3.80 crore (vs ₹7.45 crore in Q4 FY25), representing 95.84% YoY growth

Note: EBITDA and PAT figures include other income and exclude exceptional and extra-ordinary items.

Full Year FY26 Financial Performance

Profit & Loss Statement (₹ crore):

  • Total Revenue: ₹716.49 crore (FY25: ₹505.43 crore, FY24: ₹496.28 crore)
  • Raw Material Expenses: ₹572.494 crore (FY25: ₹377.87 crore, FY24: ₹375.07 crore)
  • Employee Costs: ₹16.27 crore (FY25: ₹12.08 crore, FY24: ₹9.51 crore)
  • Other Expenses: ₹98.83 crore (FY25: ₹91.17 crore, FY24: ₹87.45 crore)
  • Total Expenditure: ₹687.60 crore (FY25: ₹481.12 crore, FY24: ₹472.03 crore)
  • EBITDA: ₹28.90 crore (FY25: ₹24.31 crore, FY24: ₹24.25 crore)
  • EBITDA Margin: 4.03% (FY25: 4.81%, FY24: 4.89%)
  • Finance Costs: ₹7.42 crore (FY25: ₹5.50 crore, FY24: ₹11.74 crore)
  • Depreciation: ₹8.61 crore (FY25: ₹9.57 crore, FY24: ₹8.74 crore)
  • PBT: ₹12.87 crore (FY25: ₹9.24 crore, FY24: ₹3.77 crore)
  • Exceptional item: ₹0.00 crore (FY25: ₹4.71 crore, FY24: ₹19.84 crore)
  • PBT after exceptional item: ₹12.87 crore (FY25: ₹13.95 crore, FY24: ₹23.61 crore)
  • Tax: ₹0.00 crore (FY25: ₹0.00 crore, FY24: ₹0.07 crore)
  • PAT: ₹12.87 crore (FY25: ₹13.95 crore, FY24: ₹23.53 crore)
  • PAT Margin: 1.80% (FY25: 2.76%, FY24: 4.74%)

Production Metrics:

  • Rolled Products: 1,02,972 tonnes (FY25: 47,440 tonnes, FY24: 59,489 tonnes)
  • Includes rolled for other conversion basis quantity

Balance Sheet Position (as of March 31, 2026)

Equities & Liabilities (₹ crore):

  • Equity Share Capital: ₹86.36 crore (unchanged from FY25)
  • Preference Share Capital: ₹8.89 crore (unchanged from FY25)
  • Reserves & Surplus: ₹54.63 crore (FY25: ₹41.77 crore)
  • Total Equity: ₹149.89 crore (FY25: ₹137.02 crore)
  • Long Term Borrowings: ₹12.12 crore (FY25: ₹3.57 crore)
  • Other Long-Term Liabilities: ₹23.56 crore (FY25: ₹1.52 crore)
  • Long Term Provision: ₹2.29 crore (FY25: ₹2.07 crore)
  • Short Term Borrowings: ₹32.68 crore (FY25: ₹34.17 crore)
  • Trade Payables: ₹91.35 crore (FY25: ₹82.43 crore)
  • Short Term Provisions: ₹0.40 crore (FY25: ₹0.34 crore)
  • Other Current Liabilities: ₹14.90 crore (FY25: ₹4.29 crore)
  • Total Equity & Liabilities: ₹327.19 crore (FY25: ₹265.42 crore)

Assets (₹ crore):

  • Fixed assets: ₹103.35 crore (FY25: ₹89.65 crore)
  • Deferred Tax Assets (Net): ₹72.91 crore (unchanged from FY25)
  • Other Financial Assets: ₹5.00 crore (FY25: ₹4.06 crore)
  • Other Non Current Assets: ₹1.32 crore (FY25: ₹1.74 crore)
  • Inventories: ₹55.93 crore (FY25: ₹50.09 crore)
  • Trade Receivables: ₹56.54 crore (FY25: ₹24.77 crore)
  • Cash & Bank Balance: ₹2.26 crore (FY25: ₹1.29 crore)
  • Other Current Assets: ₹2.07 crore (FY25: ₹1.11 crore)
  • Other Financial Assets: ₹27.80 crore (FY25: ₹19.80 crore)
  • Total Assets: ₹327.19 crore (FY25: ₹265.42 crore)

Operational Highlights

Manufacturing Capacity:

  • Steel melting capacity: ~85,000 TPA
  • Rolling capacity: 200,000 TPA
  • Facility location: Ghaziabad, ~12.5-acre plant
  • Unique capability: India's only stainless-steel wire rod producer using direct billet charging technology

Green Initiatives:

  • Green power purchased through open access contributed to more than 25% of overall power consumption
  • Company committed to increase share of green power in future
  • Awarded GreenPro certification by CII for TMT Rebars
  • Carbon footprint: 0.40–0.80 tonnes CO₂ per tonne steel (vs industry average 1.7–2.2 tonnes)

Strategic Developments:

  • Implemented Direct Charging Technology for TMT bar mill to reduce specific fuel consumption and carbon footprint
  • Secured BIS approval for SS 550 reinforcement bars (32mm) and Fe 550/Fe 550D grade TMT bars
  • Raised ₹114.71 crore through preferential allotment in February 2024
  • Achieved zero debt status by March 2024
  • ₹22.30 crore CAPEX incurred for plant upgrade/debottlenecking

Management Commentary

Mr. Udit Rathi, Promoter & Chief Strategy Officer, stated: \"We have closed the fiscal year on a strong note, with robust performance in the last quarter. Despite market headwinds from macro-economic uncertainties and steel price volatility, we have demonstrated resilience and continued on our growth trajectory.\"

Key points from management commentary:

  • Growth driven by healthy demand and ramp up of TMT bar mill operations
  • Energy and efficiency measures helped offset pricing pressures
  • The year marks a new phase as \"Rathi 2.0\" with several key milestones
  • Present capacity utilization provides significant headroom for ramp up
  • Looking at organic and in-organic growth opportunities
  • Focus remains on delivering sustainable value to all stakeholders

Future Outlook and Strategy

Capacity Utilization: Target ramp-up from 55-60% to 80% of Steel Melting Shop

Expansion Plans:

  • Expand Steel Melting Shop at minimal cost (below industry benchmarks)
  • New higher-capacity Melting Unit under proposal (subject to demand outlook)
  • Conveyor system for TMT Mill to improve efficiency and reduce handling costs

Sustainability Investments:

  • Rooftop Solar Power Generation unit planned
  • Renewable power tie-ups to strengthen green energy usage
  • Digitalization and automation initiatives to improve productivity

Product Strategy:

  • Increase share of higher-margin stainless steel grades
  • Strengthen presence in Fe 550/550D grades of TMT bars for premium residential and infrastructure projects
  • Leverage GreenPro certification for government and green project supplies

Market Context

Indian Steel Industry:

  • India is world's 2nd largest crude steel producer
  • Per-capita steel consumption crossed 100 kg (global average 230 kg)
  • National Steel Policy targets 160 kg per-capita consumption & 300 MT capacity by 2030–31
  • Domestic crude steel output: 144.3 MT in FY24

Growth Drivers:

  • Infrastructure & construction remain largest drivers of steel demand
  • Union Budget FY25 allocated ₹11.1 lakh crore towards infrastructure development
  • Government prioritised stainless & specialty steel under PLI Scheme (₹6,300 Cr)
  • Stainless steel key for railways, metro, bridges, coastal & green hydrogen projects