Capacity Utilization (Melting)
60-65%
N/A
Current utilization range; target is 80-85% via direct billet charging capex.
RATHISTEELANDPOWER
Manufacturing
10 Feb 2026
Rathi Steel And Power Ltd — Q3 FY26
Rathi Steel delivered a strong Q3 FY26 with total income of ₹160.09 crore (+51% YoY) and PAT of ₹1.91 crore (+262% YoY), driven by improved capacity utilization, restart of the TMT mill, and a balanced product mix.
Financial stats pending filing verification
2-Minute Summary
✦ AI-Generated from Full Transcript
Rathi Steel delivered a strong Q3 FY26 with total income of ₹160.09 crore (+51% YoY) and PAT of ₹1.91 crore (+262% YoY), driven by improved capacity utilization, restart of the TMT mill, and a balanced product mix. EBITDA margin contracted ~40bps YoY to ~4% due to higher power and consumable costs from the TMT mill restart. Management guided for 20% CAGR revenue growth and expects to double turnover in 5 years, targeting capacity utilization of 80-85% from current 60-65% via direct billet charging capex for TMT mill. Key risk: margin expansion is contingent on market conditions and cost reduction initiatives, which remain uncertain.
Key Numbers
Monthly Revenue (January 2026)
₹77.45 crore
N/A
Highest monthly turnover achieved in January 2026, indicating demand momentum.
Dealer Network
300 dealers
N/A
Dealer network across northern India; brand is well-established.
Repeat Customer Revenue (Stainless Steel)
90-95%
N/A
High repeat business in B2B stainless steel products; TMT repeat ~70%.
Management Guidance
20% CAGR revenue growth
Management expects to grow at a CAGR of 20% on a leading basis, with turnover doubling in 5 years.
Management guidance growthCapacity utilization target of 80-85%
Target to increase melting utilization from current 60-65% to 80-85% through direct billet charging capex for TMT mill, expected completion this quarter or early next.
Management guidance expansionGreenPro certification expected this quarter or early next
GreenPro certification from CII is expected in Q4 FY26 or early Q1 FY27.
Management guidance otherKey Risks
Margin expansion dependent on market conditions
Management stated EBITDA margin improvement is subject to market conditions and cost reduction efforts, which are uncertain.
medium · management_commentarySlow adoption of premium grades (Fe550D, stainless rebar)
Management noted that the market for Fe550D and stainless rebar is not growing as fast as anticipated, limiting premium realization.
medium · analyst_questionWorking capital needs may increase with volume growth
Higher volumes will require larger working capital limits; management is seeking lower-cost debt but refinancing risk exists.
low · analyst_questionNotable Quotes
We expect to grow at a CAGR of 20% on a leading basis.
Selling selling part is not an issue at all for me.
The stage is still not grow in the way we anticipate. Of course there's a future... but the speed we anticipate it is not the develop.
Frequently Asked Questions
What was Rathi Steel And's revenue in Q3 FY26?
Rathi Steel And reported revenue of ₹160 Cr in Q3 FY26, representing a +51% change compared to the same quarter last year.
What guidance did Rathi Steel And management give for FY27?
20% CAGR revenue growth: Management expects to grow at a CAGR of 20% on a leading basis, with turnover doubling in 5 years. Capacity utilization target of 80-85%: Target to increase melting utilization from current 60-65% to 80-85% through direct billet charging capex for TMT mill, expected completion this quarter or early next. GreenPro certification expected this quarter or early next: GreenPro certification from CII is expected in Q4 FY26 or early Q1 FY27.
What are the key risks for Rathi Steel And in FY27?
Key risks include Margin expansion dependent on market conditions — Management stated EBITDA margin improvement is subject to market conditions and cost reduction efforts, which are uncertain.; Slow adoption of premium grades (Fe550D, stainless rebar) — Management noted that the market for Fe550D and stainless rebar is not growing as fast as anticipated, limiting premium realization.; Working capital needs may increase with volume growth — Higher volumes will require larger working capital limits; management is seeking lower-cost debt but refinancing risk exists..
Did Rathi Steel And meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Rathi Steel And Q3 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary with filing verification status shown on the financial stats.