RHI Magnesita India FY26 Revenue Hits Record INR 4,000 Crores

Full Year FY26 (Ended 31 March 2026):

Q4 FY26 Performance:

The company recognized an impairment of goodwill relating to RHIM IR driven by reassessment of medium-to long-term growth expectations due to:
Weaker export demand amid geopolitical uncertainties
Persistent currency depreciation impacting raw material costs
Increasing industry capacity additions
Heightened competition from imports
Continued inflationary pressures across key cost categories

Growth was driven by strong performance in ladle solutions and electronic arc furnace projects, expansion in tundish and ladle slide gate solutions, and increased demand in the iron making segment
The company secured one of the largest coke oven projects with a major integrated steel player (30,000+ tonne order) with an 18-month order book visibility
Steel remains the largest business segment with India's crude steel production capacity increasing to approximately 165 million tons
Cement sector contribution to revenue decreased from 13% in FY25 to 11% in FY26 due to industry overcapacity and intense competition
Dalmia assets revenue grew 14% to INR 1,153 crores (from INR 1,013 crores in FY25) with EBITDA margin of 10.8%

The 4PRO platform (combining refractory products with automation, robotics, digital monitoring, and process optimization) gained traction with three long-term agreements secured
Successfully implemented India's first fully integrated robotic solution in caster operations, currently operating two robotic systems
Focus on de-commoditization through technology-led integrated solutions and performance-based partnerships

FY26 capex: Approximately INR 135 crores focused on operational excellence, product innovation, selective capacity enhancement, automation, and sustainability initiatives
FY27 planned capex: INR 150 crores, with maintenance capex of INR 40-50 crores, remainder allocated to growth initiatives and automation
Continued modernization of Dalmia assets with INR 100 crores spent in FY26

Significant industry headwinds including excess capacity, aggressive pricing behavior, rising raw material costs, elevated freight and energy expenses
Raw material cost inflation particularly in magnesia-based products (fused magnesia and DBM) due to energy cost increases in China and freight increases
Successfully implemented price increases of 1-3% across selected products and customer segments, with some cases achieving double-digit increases
Price increases effective from May 2026 expected to benefit Q1 and Q2 FY27

FY27 EBITDA margin guidance: 13%
Expected to outperform market volume growth by 2% (market growing at 6-7%, company targeting 9% volume growth)
Multiple margin improvement drivers identified:
Improved demand across core end industries
Progressive implementation of price increases
Cost optimization through recipes, recycling, and strategic sourcing
Expansion into new industrial segments including petrochemicals
Greater penetration of 4PRO platform
Improved fixed cost absorption from coke oven projects
Q1 FY27 expected to be a strong quarter due to pending price increases and seasonal cement demand (May-September)

Strong cash generation with 9% YoY increase in operating cash flow to INR 409 crores
Net cash positive position achieved with net debt-to-EBITDA at 0.1x
Robust, liquid balance sheet positioned to support future growth initiatives while maintaining financial flexibility

Mines transferred to company ownership, expected to provide cost benefits compared to market purchases
Received CSR award from Government of Andhra Pradesh and Environmental Excellence award from Tamil Nadu Pollution Control Board