RHI Magnesita India FY26 Net Loss, Impairment, Dividend

Date: 29 May 2026

Board Meeting Outcomes

The Board of Directors of RHI Magnesita India Limited met on 28 May 2026 (adjourned) and 29 May 2026 and approved the following:

1. Audited Standalone & Consolidated Financial Results for the quarter and year ended 31 March 2026.

2. Recommended a Final Dividend of ₹2.50 (250%) per fully paid-up equity share of ₹1 each for FY 2025-26, subject to shareholder approval at the ensuing AGM.

The meeting started on 28 May 2026 at 2:30 p.m. and adjourned at 3:55 p.m. It reconvened on 29 May 2026 at 4:45 p.m. and concluded at 8:30 p.m.

Financial Results (Standalone)

For Year Ended March 31, 2026 (Audited):

Revenue from operations: ₹335,658.78 lakhs (vs. ₹280,186.01 lakhs in FY25)
Net Loss: ₹(46,768.50) lakhs (vs. Net Profit of ₹22,300.29 lakhs in FY25)
Total Comprehensive Loss: ₹(46,931.95) lakhs (vs. Total Comprehensive Income of ₹22,269.78 lakhs in FY25)
Basic EPS: ₹(22.65) (vs. ₹10.80 in FY25)
Diluted EPS: ₹(22.65) (vs. ₹10.80 in FY25)

For Quarter Ended March 31, 2026 (Unaudited):

Revenue from operations: ₹78,571.02 lakhs (vs. ₹75,545.42 lakhs in Q4 FY25)
Net Loss: ₹(62,441.04) lakhs (vs. Net Profit of ₹3,639.28 lakhs in Q4 FY25)
Total Comprehensive Loss: ₹(62,518.29) lakhs (vs. Total Comprehensive Income of ₹3,592.13 lakhs in Q4 FY25)
Basic EPS: ₹(30.24) (vs. ₹1.76 in Q4 FY25)
Diluted EPS: ₹(30.24) (vs. ₹1.76 in Q4 FY25)

Exceptional Item: An impairment of investment in a subsidiary of ₹66,092.10 lakhs was recognized during the quarter and year (March 31, 2025: Nil).

Standalone Balance Sheet (as of March 31, 2026):

Total Assets: ₹434,617.75 lakhs (vs. ₹474,046.97 lakhs in FY25)
Total Equity: ₹355,284.68 lakhs (vs. ₹407,545.86 lakhs in FY25)
Investments: ₹139,171.92 lakhs (₹120,649.36 non-current + ₹18,522.56 current) (vs. ₹186,491.63 lakhs in FY25)
Inventories: ₹84,233.53 lakhs (vs. ₹77,072.20 lakhs in FY25)
Trade Receivables: ₹57,856.21 lakhs (vs. ₹60,624.72 lakhs in FY25)
Cash and Cash Equivalents: ₹10,010.62 lakhs (vs. ₹7,094.10 lakhs in FY25)

Standalone Cash Flows (FY26):

Net Cash from Operating Activities: ₹21,168.12 lakhs
Net Cash used in Investing Activities: ₹(27,502.81) lakhs
Net Cash used in Financing Activities: ₹(688.40) lakhs
Net Increase in Cash: ₹2,916.52 lakhs

Financial Results (Consolidated)

For Year Ended March 31, 2026 (Audited):

Revenue from operations: ₹401,994.50 lakhs (vs. ₹367,449.50 lakhs in FY25)
Net Loss: ₹(38,203.78) lakhs (vs. Net Profit of ₹20,251.28 lakhs in FY25)
Total Comprehensive Loss: ₹(38,487.61) lakhs (vs. Total Comprehensive Income of ₹20,172.82 lakhs in FY25)
Basic EPS: ₹(18.54) (vs. ₹9.81 in FY25)
Diluted EPS: ₹(18.54) (vs. ₹9.81 in FY25)

For Quarter Ended March 31, 2026 (Unaudited):

Revenue from operations: ₹93,225.90 lakhs (vs. ₹91,796.80 lakhs in Q4 FY25)
Net Loss: ₹(51,810.80) lakhs (vs. Net Profit of ₹3,618.21 lakhs in Q4 FY25)
Total Comprehensive Loss: ₹(51,913.85) lakhs (vs. Total Comprehensive Income of ₹3,523.60 lakhs in Q4 FY25)
Basic EPS: ₹(25.09) (vs. ₹1.75 in Q4 FY25)
Diluted EPS: ₹(25.09) (vs. ₹1.75 in Q4 FY25)

Exceptional Item: A goodwill impairment of ₹55,624.03 lakhs was recognized during the quarter and year (March 31, 2025: Nil).

Consolidated Balance Sheet (as of March 31, 2026):

Total Assets: ₹486,071.76 lakhs (vs. ₹517,579.65 lakhs in FY25)
Total Equity: ₹356,044.69 lakhs (vs. ₹399,861.53 lakhs in FY25)
Goodwill: ₹32,448.35 lakhs (vs. ₹86,717.12 lakhs in FY25)
Inventories: ₹109,886.08 lakhs (vs. ₹107,355.08 lakhs in FY25)
Trade Receivables: ₹70,312.69 lakhs (vs. ₹73,297.27 lakhs in FY25)
Cash and Cash Equivalents: ₹15,757.11 lakhs (vs. ₹9,674.80 lakhs in FY25)

Consolidated Cash Flows (FY26):

Net Cash from Operating Activities: ₹40,909.54 lakhs
Net Cash used in Investing Activities: ₹(33,932.51) lakhs
Net Cash used in Financing Activities: ₹(894.72) lakhs
Net Increase in Cash: ₹6,082.31 lakhs

Dividend Declaration

The Board recommended a Final Dividend of ₹2.50 per fully paid-up equity share of ₹1 each (250%) for FY 2025-26. This is subject to approval by shareholders at the ensuing Annual General Meeting. If declared, the dividend will be paid to eligible shareholders on a record date to be announced later. The total dividend for FY 2025-26 would be ₹2.50 per share.

Auditor’s Report

Auditor: Price Waterhouse Chartered Accountants LLP (Firm Registration Number: 012754N/N500016)

Partner: Anurag Khandelwal (Membership Number: 078571)

Opinion: Unmodified (clean) opinion on both the Standalone and Consolidated Financial Results for the year ended March 31, 2026.

Other Matter (Standalone): The quarterly results are balancing figures between the audited full year and published unaudited year-to-date figures up to Q3, which were subject to limited review.

Other Matter (Consolidated): The financial results of two subsidiaries (total assets ₹2,563.77 lakhs, net assets ₹2,220.39 lakhs) were audited by other auditors. The consolidated opinion is based on their reports.

Other Operational / Strategic Disclosures

Subsidiary Investment & Acquisition (Note 3 & 4):

On July 21, 2025, the Company invested ₹249.71 lakhs in its wholly-owned subsidiary, Intermetal Engineers (India) Private Limited (IEIPL), by subscribing to 150 equity shares at a premium of ₹166,375 per share.
On August 01, 2025, IEIPL acquired 100% of Ashwath Technologies Private Limited for a total transaction value of ₹1,411.89 lakhs, making it a wholly-owned subsidiary of IEIPL.

Impact of New Labour Codes (Note 4 & 5):

The Government of India notified four new labour codes on November 21, 2025. The Company/Group assessed the incremental impact, resulting in an expense of ₹123.98 lakhs (standalone) and ₹640.20 lakhs (consolidated) recognized under 'Employee Benefits Expense' for FY26. The Company will monitor final rules and account for any additional impact.

Scheme of Merger (Note 6):

The scheme of merger of RHI Magnesita Seven Refractories Limited (transferor) with RHI Magnesita India Refractories Limited (transferee) was approved. The appointed date was April 1, 2025, and it became effective on February 2, 2026. As both were wholly-owned subsidiaries, the merger had no effect on the consolidated results.

Proposed Scheme of Merger (Note 8):

The boards of IEIPL and Ashwath approved a scheme for IEIPL to merge into Ashwath (under Section 233 of the Companies Act, 2013) on May 22, 2026. This is pending approvals, so no effect is considered in these results.

Segment Reporting (Note 6 & 9):

The Company/Group is primarily engaged in manufacturing refractories and monolithics. There are no reportable segments as the Chief Operating Decision Maker (CODM) assesses the business as a single segment.

KMP / Board / Auditor Changes

Not Specified

Disinvestment / Strategic Actions

Not Specified