Rathi Steel & Power Ltd

Meeting Details

• Earnings conference call held on August 18, 2026; concluded at 3:51 pm IST.
• Mode: group investor call via audio recording.
• Event/organiser: company earnings conference call.
• Purpose: discuss unaudited standalone results for quarter ended June 30, 2026.
• Key company participant: Whole Time Director.
• Recording available on the company website.

Business overview

• RSPL is a long-steel products maker with an integrated Ghaziabad facility, including SS wire rods.

Key operational highlights

• Q1 FY27 volumes up 30% YoY to 28,372 MT.
• Q1 FY27 revenue ₹193.67 Cr; EBITDA ₹7.77 Cr; PAT ₹3.48 Cr.
• Integrated rolling capacity 200,000 TPA; stainless steel melting capacity 85,000 TPA.

Financial performance

• FY26 consolidated revenue ₹716.49 Cr; EBITDA ₹28.90 Cr; PAT ₹12.87 Cr.
• Q1 FY27 revenue ₹193.67 Cr; EBITDA ₹7.77 Cr; PAT ₹3.48 Cr.

Capital structure & liquidity

• FY26 balance sheet: total equity ₹149.89 Cr; total assets ₹327.19 Cr; short-term borrowings ₹32.68 Cr; cash ₹2.26 Cr.

Strategic priorities & outlook

• Focus on high-margin mix and ~20% revenue CAGR over next two years.
• Scale stainless steel rebars and Fe 550/550D TMT bars; expand downstream stainless products.
• Increase energy efficiency; expand renewable power via Open Access and rooftop solar.

Risks & mitigation

• Cyclicality of steel sector and raw material volatility; competition; potential regulatory or project delays.

Governance & leadership

• Key executives include MD Mahesh Pareek, CSO Udit Rathi, and CFO Pawan Kumar.

Meeting Details

• Earnings call for Q1 FY27 on unaudited standalone results scheduled Tuesday, August 18, 2026 at 3:00 PM IST.

Mode & Organizer

• Virtual earnings call organized by Kirin Advisors.

Participants

• Management speakers: Promoter President; President; AVP Growth & Strategy.

Purpose

• Discuss Q1 FY27 unaudited standalone results.

Q1 FY27 unaudited results

• Q1 FY27 unaudited results; Total income ₹193.67 Cr, up 24.63% YoY.
• EBITDA ₹7.77 Cr with margin 4.01%.
• PAT ₹3.48 Cr; PAT margin 1.80%.
• Diluted EPS ₹0.40.
• Total sales volumes 28,372 MT, up ~30% YoY.
• TMT Rebar volumes 18,677 MT, from 8,295 MT.
• Diversified product portfolio supported volume and revenue growth.
• Management focus on scaling volumes, mix optimization, market reach.
• Melting capacity ~85,000 tpa; rolling ~200,000 tpa.
• FY26 Total Income ₹716.49 Cr; EBITDA ₹28.90 Cr; PAT ₹12.87 Cr.

Financial results and audit status

• Unaudited standalone Q1 FY2026-27 results for quarter ended 30 June 2026 approved.
• Limited Review Report on results noted; auditor expressed an unmodified conclusion.
• Results enclosed as Annexure A and available on company website.
• Audit Committee recommended the results; Board approved.
• Notes indicate single operating segment.
• Auditor: M. Lal & Co Chartered Accountants.

Meeting Details

• Board meeting scheduled on Thursday, August 13, 2026; time and venue not disclosed.

Key Agenda Items

• Consider and approve unaudited standalone financial results for quarter ended June 30, 2026.

Other Notes

• Trading window closed for designated persons and relatives from July 1, 2026 until 48 hours after results.

Dematerialisation processing and records updates

• Dematerialisation requests received during the reporting period were confirmed to Depositories within 15 days.
• Physical certificates received for dematerialisation were mutilated and cancelled after verification.
• Depository's name substituted as registered owner in the Register of Members within 15 days.
• Updates to Depository and all stock exchanges where listed completed within 15 days.
• Register of Members updated accordingly.

Key metrics

• Q1 FY27 sales volumes 28,372 MT, up from 21,864 MT in Q1 FY26 (~30% YoY).
• Q1 FY27 revenue exceeded ₹193 Cr, up ~24% YoY.
• TMT rebar sales volumes grew to 18,677 MT from 8,295 MT.
• Diversified product mix and expanded market reach supported volumes amid volatility.
• FY26: Total income ₹716.49 Cr, EBITDA ₹28.90 Cr, PAT ₹12.87 Cr.
• Melting capacity about 85,000 tpa and rolling capacity 200,000 tpa.

FY26 results

• Total income rose 41.7% year-on-year to ₹716 crore in FY26.
• EBITDA increased 18.8% to ₹28.9 crore in FY26.
• PAT grew 39.24% to ₹12.87 crore in FY26, excluding prior-year exceptional items.
• Q4 total income was ₹244.57 crore, up 63.3% year-on-year and 52.7% sequentially.
• Q4 EBITDA was ₹9.89 crore, up 22% year-on-year and 54% quarter-on-quarter.
• Q4 PAT was ₹7.45 crore, with PAT margin improving to 3%.

Operations and strategy

• Rolling mill production increased 117% year-on-year to about 1,02,000 tons.
• Rolling division utilization was 51.4% in FY26; steel melting shop utilization was 53%.
• Management targets rolling utilization of 65% to 70% this year.
• Steel melting shop utilization is currently 50% to 52%, with a target near 80%.
• Direct charging in TMT is expected to save ₹3,000-₹4,000 per ton, or 6%-7%.
• Raw material cost is about 80% of sales.
• Average debtor period is 25-30 days; payable days are around 60 days.
• Inventory holding is about one month, including raw materials and finished goods.

Demand, customers and capex

• About 60% of FY26 revenue came from B2B; about 40% came from TMT bars.
• TMT sales are largely concentrated in NCR due to freight economics.
• Institutional buyers include Ace, Wave, VVIP, Ambience, Omaxe, ATS, and past DLF supplies.
• Management said FY27 growth aspiration remains 20% to 25% on average.
• FY25 capex for TMT restart was estimated at ₹5-₹7 crore.
• Last year capex exceeded ₹20 crore, mainly replacement and debottlenecking.
• Management is studying steel melting shop expansion, subject to statutory clearances and demand visibility.

Q&A Highlights

• Analysts asked about segment volumes and spreads; management said separate TMT and stainless volumes were not disclosed.
• Analysts asked about sustainable margins; management said margins should improve with higher utilization and lower fuel costs.
• Analysts asked about GreenPro demand; management said institutional buyers are increasingly asking for certified green products.
• Analysts asked about rooftop solar; management said feasibility is being studied, with initial potential of 1-2 MW.
• Analysts asked about borrowing cost; management said current borrowing cost is 16% and refinancing is being explored.
• Analysts asked about GST disputes; management said they relate to alleged input ITC issues and are under adjudication.
• Analysts asked about inventory risk in falling prices; management said raw material purchases are matched closely to bookings.
• Analysts asked about competition; management said NCR proximity, brand recall, and distribution are key advantages.
• Analysts asked about inorganic growth; management said it is seeking steel-related or allied-sector assets.