Rain Industries (RAIN) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue from operations reached INR 37.68 billion, with adjusted EBITDA at INR 4.34 billion and an adjusted net loss after tax of INR 0.98 billion; board approved unaudited results with unmodified auditor review.

• Carbon segment performance improved due to higher margins and volumes, while Advanced Materials and Cement segments saw declines from lower demand and volumes.

• Maintenance capital expenditure was US$14 million, and US$44 million of 2025 Notes were repaid, with liquidity at US$278 million.

• Safety performance was strong, achieving a TRIR of 0.06 across all segments, with only one non-operational incident and immediate corrective actions.

• No defaults on loans or debt securities; no related party transactions for the quarter.

Financial highlights

• Consolidated net revenue for Q1 2025 was INR 37,680.16 million, up from INR 36,702.36 million in Q1 2024.

• Adjusted EBITDA for Q1 2025 was INR 4,342 million, up from INR 3,258 million year-over-year, with margin improving to 11.5% from 8.9%.

• Adjusted net loss after tax narrowed to INR 978 million from INR 1,617 million year-over-year.

• Basic and diluted loss per share (consolidated) for Q1 2025 was INR 4.09, versus INR 4.34 in Q1 2024.

• Carbon segment revenue rose 10.8% year-over-year to INR 27.34 billion, while Advanced Materials and Cement segments declined.

Outlook and guidance

• Carbon segment expected to improve further in 2025 with increased capacity utilization and higher realizations, supported by global blending and lifting of Indian CPC import restrictions.

• Raw material constraints are being addressed by expanding alternative sourcing.

• Cement segment expected to benefit from India's projected 8% demand growth and improved pricing in 2025.

• Research and production facility upgrades in Canada and Germany are expected to yield near-term benefits.

• Management does not foresee significant impact from Russia-Ukraine conflict on group results; continues to monitor regulatory and sanctions compliance.