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Margin expansion dependent on market conditions
View Risks →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.
bullish
medium
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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.
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Capacity Utilization (Melting)
60-65%
N/A
Current utilization range; target is 80-85% via direct billet charging capex.
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%.
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Guidance and risk preview
Management expects to grow at a CAGR of 20% on a leading basis, with turnover doubling in 5 years.
Management stated EBITDA margin improvement is subject to market conditions and cost reduction efforts, which are uncertain.
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