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 advances despite a highly commoditized and competitive market.

• Maintained strong operational performance through cost optimization, automation, and rollout of the 4PRO business model, offering integrated solutions and digitalization for customers.

• Deployed India's first complete robotic solution in a steel plant, enhancing reputation, safety, and productivity, and paving the way for more long-term solution contracts.

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

• Continued focus on innovation, customer satisfaction, and productivity improvements to support India's industrial growth and infrastructure expansion.

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 lakh (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 lakh (INR 48 crores), up 27% sequentially; profit after tax was Rs. 3,526.79 lakh (INR 35 crores), down 3% sequentially and lower year-over-year.

• Operating cash flow was Rs. 8,831 lakh (INR 88 crores), up 36% quarter-on-quarter; net debt-to-EBITDA improved from 0.3x to 0.2x.

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.

• Full-year guidance targets profitability percentages in line with FY25, with no specific quarterly guidance provided.

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

• Profitability momentum expected in upcoming quarters due to price increases and productivity initiatives.

• Robust order book in steel and iron making segments supports positive outlook.