Image Source : Manufacturing Today India
RHI Magnesita India Ltd, a leading supplier of refractory solutions, has reported its consolidated financial results for the quarter ended June 2025. The company posted a revenue from operations of ₹9.6 billion and a net profit of ₹352.7 million, reflecting a steady performance despite inflationary headwinds and volatile input costs.
Key Highlights
- Consolidated revenue from operations stood at ₹9.6 billion for Q1 FY26
- Net profit for the quarter came in at ₹352.7 million
- Operating margins impacted by higher raw material and logistics costs
- Demand remained strong across steel, cement, and non-ferrous sectors
Revenue Trends and Segment Performance
RHI Magnesita India’s Q1 revenue of ₹9.6 billion marks a modest year-on-year growth, driven by sustained demand in core industrial sectors.
- The steel segment contributed over 60% of total revenue, supported by increased capacity utilization at client sites.
- Cement and non-ferrous metal industries showed stable demand, particularly in southern and eastern India.
- Export revenue remained flat due to currency fluctuations and shipping delays, but domestic volumes offset the impact.
Profitability and Margin Dynamics
The company’s net profit of ₹352.7 million reflects a cautious but resilient bottom-line performance amid rising input costs.
- Operating profit margins narrowed to approximately 9.2%, down from 11.4% in the previous quarter.
- Raw material costs rose by 8.7% quarter-on-quarter, driven by global supply chain disruptions.
- Freight and energy costs also climbed, impacting EBITDA margins.
- The company maintained tight control over employee and administrative expenses to preserve profitability.
Operational Efficiency and Strategic Initiatives
RHI Magnesita India continues to focus on operational agility and strategic expansion to mitigate cost pressures and enhance long-term competitiveness.
- The company has initiated backward integration for key raw materials through its recently acquired assets in Odisha and Andhra Pradesh.
- Automation and digitalization efforts across manufacturing units have improved throughput and reduced downtime.
- A new product line of low-carbon refractories is under development, targeting green steel producers and sustainable cement manufacturers.
Market Sentiment and Shareholder Value
Investor sentiment remains cautiously optimistic, with the company’s stock showing moderate movement post-results.
- Shares of RHI Magnesita India Ltd traded at ₹612.45 on the NSE, up 0.6% from the previous close.
- Analysts expect margin recovery in the second half of FY26 as input costs stabilize and new contracts kick in.
- The company has not declared a dividend for the quarter, prioritizing reinvestment in capacity expansion and R&D.
Outlook and Growth Strategy
RHI Magnesita India is well-positioned to capitalize on infrastructure growth and industrial recovery in the coming quarters.
- The company expects double-digit volume growth in H2 FY26, led by new orders from integrated steel plants and cement majors.
- Strategic investments of ₹3,600 crore over the next three years are planned to expand capacity and enhance product innovation.
- Management remains focused on margin improvement through cost optimization and premium product mix.
Conclusion
RHI Magnesita India’s Q1 FY26 results reflect a balanced performance amid macroeconomic challenges. With strong demand fundamentals, strategic investments, and operational discipline, the company is poised to maintain its leadership in the refractory solutions space.
Sources: Business Standard, Moneycontrol, Trendlyne, RHI Magnesita India Ltd official disclosures
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