RHI Magnesita India (534076) Q3 25/26 earnings summary

Executive summary

• Achieved record quarterly revenue of INR 1,092 crore in Q3 FY26, reflecting resilience amid macroeconomic headwinds and maintaining market leadership through a diversified portfolio and strong customer relationships.

• Recognized for exemplary safety performance by the World Refractories Association and at nine customer sites, with awards from major steel clients including Tata Steel.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, were approved by the Board on February 13, 2026.

• Statutory auditors issued limited review reports with no material misstatements identified.

• Strategic focus on expanding 4PRO (total refractory management with sustainability), strengthening ironmaking, cost optimization, and advancing R&D for circular economy initiatives.

Financial highlights

• Q3 FY26 revenue grew 5.5% sequentially and up to 12% year-over-year, driven by 4PRO wins and ironmaking project deliveries.

• Adjusted EBITDA reached INR 150 crore, up 36% quarter-on-quarter and 14% year-on-year; EBITDA margin improved to 13.7% from 10.7% in Q2.

• Profit after tax was INR 62 crore, up 61% sequentially and 29% year-over-year.

• Standalone revenue from operations for the quarter was Rs. 90,347.99 lakhs; consolidated revenue was Rs. 109,201.39 lakhs.

• Operating cash flow hit a record INR 289 crore, a 627% increase quarter-on-quarter, supported by strong EBITDA and disciplined working capital management.

Outlook and guidance

• Management targets sustainable EBITDA margins of 14%-15% in the coming quarters, with cautious optimism due to ongoing market volatility.

• Realization per ton expected to remain in the INR 76,000–80,000 range in the near term, subject to product mix and market conditions.

• Export contribution expected to see a modest uptick from current 9%-10% levels, with new orders anticipated from recent trials.

• Growth expected in cement and steel industries, driven by higher capex and real estate projects.

• Dividend of Rs. 2.50 per share (250% of par value) approved at the AGM held on September 26, 2025.