RHI Magnesita India (534076) Q1 25/26 earnings summary

Executive summary

• Achieved robust Q1 FY26 results with 9% year-on-year revenue growth and 13% shipment volume increase, driven by regained market share, strategic initiatives, and automation, including India's first end-to-end robotic steel caster system.

• Secured market share in commodity and iron making segments through focused execution, with a robust order book and ongoing innovation to support India's industrial growth.

• Continuous reduction in Net Debt to EBITDA ratio, improving from 0.3x to 0.2x, reflecting strong cash generation.

• Board approved unaudited consolidated and standalone financial results for the quarter ended June 30, 2025.

Financial highlights

• Q1 FY26 consolidated revenue from operations reached Rs. 96,031.56 lakhs (INR 950 crores), up 5% sequentially and 9% year-on-year.

• Shipment volume grew to 129 kilotons, up 4% quarter-on-quarter and 13% year-on-year.

• Operating EBITDA was Rs. 10,333 lakhs (INR 103 crores), a 10% increase over Q4 FY25, with EBITDA margin improving to 10.8% from 10.2% sequentially.

• Profit before tax stood at Rs. 4,793 lakhs (INR 48 crores), up 27% sequentially; profit after tax was Rs. 3,526.79 lakhs, down year-on-year due to prior tax credits.

• Operating cash flow was Rs. 8,831 lakhs (INR 88 crores), up 36% quarter-on-quarter; CapEx for the quarter was Rs. 2,767 lakhs, a 90% increase sequentially.

Outlook and guidance

• Management expects margin improvement in Q2 and Q3 as high-cost alumina inventory is consumed and price increases take effect, aiming to match last year's EBITDA margin for the full year.

• Profitability momentum expected in upcoming quarters due to secured price increases, productivity initiatives, and recipe optimization.

• Export growth in flow control products is planned for 2026, with advanced trials underway.

• Strategic investments and acquisitions to drive future growth, especially in under-represented product markets.