RATHISTEELANDPOWER Q1 FY27 earnings call.
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Revenue
₹193.67 Cr
verification pending
Revenue YoY
24.6%
reported change
EBITDA
₹7.77 Cr
latest reported figure
Source
bse pending
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Rathi Steel and Power delivered a strong Q1 FY27 with ₹193.67 crore revenue (+24.6% YoY) driven by 30% volume growth to 28,372 MT, despite a challenging environment of softer steel realizations and geopolitical headwinds. EBITDA grew 24.83% to ₹7.77 crore with margin expansion of 58 basis points to 4.01%, reflecting cost discipline and improving product mix. PAT surged 84.5% to ₹3.48 crore. The TMT bar segment was the standout performer, more than doubling volumes to 18,677 MT, while stainless steel volumes declined ~10-12% due to export-oriented customer disruptions. Management reiterated FY27 rolling mill utilization guidance of >60% (currently ~51-52%), with ₹15 crore capex planned for modernization and debottlenecking. Full commercial integration of the TMT rolling mill with the melt shop is targeted for Q4 FY27. The company aspires to improve EBITDA margins by 2-3 percentage points over two years through capacity ramp-up, lower refinancing costs, and TMT integration. Key risks include stainless steel export demand uncertainty, competitive intensity from recently ramped-up IBC-acquired stainless steel units, and working capital constraints at current growth pace.
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Guidance to track
- Management reiterated its target of exceeding 60% rolling mill utilization for FY27, currently tracking at ~51-52% and on track.
- Full-year capex guidance of approximately ₹15 crore for modernization, debottlenecking, and direct charging integration, funded largely from internal accruals.
- Trial runs completed for integrating the melt shop with the TMT bar rolling mill; full commercial operations expected to stabilize by Q4 FY27 post-monsoon season.
- Management aspires to improve EBITDA margins by 2-3 percentage points over the next two years through capacity ramp-up, lower refinancing costs, and TMT integration, targeting peer-level margins.
Risks flagged
- Stainless steel volumes declined ~10-12% YoY due to geopolitical disruptions affecting West Asian export markets and elevated ocean freight rates. Management acknowledged this as the 'new normal' with limited visibility on resolution.
- Analyst raised concerns about recently ramped-up IBC-acquired stainless steel competitors creating supply-demand mismatches. Management confirmed industry oversupply in stainless steel has impacted margins but expects gradual consolidation.
- Management deflected questions on rooftop solar implementation timeline, citing ongoing technical feasibility assessment. No concrete timeline provided despite prior discussion.
- Management acknowledged need for enhanced working capital facilities and refinancing to support 20%+ growth trajectory. Current debt levels are moderate but expansion may require external financing at competitive rates.
Key quotes
- Our focus is very clear we are not looking at turnover as a or or sales volume or sale price as our priority. We are looking at margins as the priority.
- The way our product range is sort of aligned now with decent flexibility amongst the product categories, we see that happening pretty soon and once we are able to do so then we look at some expansion in the melt shop division.
- My stainless steel volumes was a little softer as compared to Q1 26... going forward these times are not fully resolved... So there is we our endeavor is to steadily pick up the volume and at least try and maintain the numbers what we have been achieving last year.
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