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 segments.

• Shipment volume reached 141 kilotons, up 9% quarter-on-quarter and 18% year-over-year, reflecting strong demand and successful strategic initiatives.

• Margins remained under pressure due to competitive intensity, raw material costs, and FX volatility, but cost optimization, automation, and improved product mix are expected to drive recovery.

• Integration and acquisition of Ashwath Technologies progressed, strengthening steel flow control capabilities and supporting operational efficiency.

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

Financial highlights

• Revenue from operations for Q2 FY26 was INR 1,035 crore (₹103,535.65 lakh), up from INR 867 crore (₹86,706.56 lakh) in Q2 FY25.

• Operating EBITDA for Q2 FY26 was INR 111 crore (₹11,053 lakh), with an EBITDA margin of 10.7%, up 7% sequentially.

• Profit after tax for Q2 FY26 stood at INR 38 crore (₹3,835 lakh), up 9% sequentially; consolidated profit was ₹4,174.09 lakh.

• EPS increased 9% QoQ to 1.9; basic and diluted EPS for the consolidated half-year was Rs. 5.75.

• Net debt-to-EBITDA ratio at 0.45x, higher due to working capital tied to revenue growth and dividend payout.

Outlook and guidance

• Full-year FY26 EBITDA margin expected at 13%-14%, supported by lower raw material prices, recipe optimization, and performance bonuses.

• Strong domestic steel demand and cement sector growth expected, with robust order book and major CapEx plans by customers.

• Continued focus on automation, product innovation, and market expansion.