RHI Magnesita India (534076) Q2 25/26 earnings summary

Executive summary

• Achieved record quarterly revenue of INR 1,035 crore (₹103,536 lakh) in Q2 FY26, up 8% sequentially and 19% year-over-year, driven by higher volumes and market share gains in steel and cement sectors.

• Shipment volume reached 141 kilotons, up 9% quarter-on-quarter and 18% year-over-year, with strong demand in steel and cement.

• Maintained flat margins despite higher raw material and FX costs; strategic focus on long-term contracts, product innovation, automation, and integration of new technologies.

• Safety performance remained strong with zero lost time injuries and enhanced safety management systems.

• Board approved unaudited consolidated and standalone financial results for Q2 and H1 FY26, with no material misstatements.

Financial highlights

• Operating EBITDA for Q2 FY26 was INR 111 crore (₹11,053 lakh), margin at 10.7%, up 7% sequentially but lower year-over-year due to one-time items in the prior year.

• Profit after tax stood at INR 38 crore (₹3,835–4,174 lakh), up 9% from Q1.

• Net debt-to-EBITDA ratio at 0.45x, reflecting higher working capital and acquisition outflows.

• CapEx for Q2 was ₹3,279 lakh, supporting automation and efficiency initiatives.

• Dividend of Rs. 2.50 per share approved at the AGM on September 26, 2025.

Outlook and guidance

• Full-year FY26 EBITDA margin guided at 13%-14%, supported by lower raw material costs, product mix improvement, and performance bonuses.

• Order book remains strong, especially in steel and cement, with major CapEx plans by customers and upcoming high-margin industrial orders.

• Strategic focus on expanding market share, leveraging acquisitions, and automation for future growth.

• Cement sector outlook positive with capacity expansion and GST rationalization anticipated.

• Gradual margin improvement anticipated as high-cost inventory phases out and cost optimization measures take effect.