Rathi Steel And Power Ltd Q3 FY2025-26 Earnings Conference Call
•February 18, 2026
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Why It Matters
The earnings beat and aggressive green‑steel strategy signal Rathi Steel’s growing profitability and relevance in India’s infrastructure push, making it a compelling prospect for investors seeking ESG‑aligned exposure in the domestic steel sector.
Key Takeaways
- •Q3 FY26 revenue rose 51% to ₹160.09 crore.
- •PAT surged 262% to ₹1.91 crore, EBITDA up 38%.
- •Capacity utilization at 60‑65%; target 80‑85% with upgrades.
- •Debt reduced to ₹43.5 crore; borrowing cost declining sharply.
- •Green steel focus leverages PLI incentives and carbon‑reduction goals.
Summary
Rathi Steel & Power Ltd held its Q3 FY2025‑26 earnings conference call, presenting a robust financial update and outlining its strategic thrust toward sustainable steel production. Management highlighted a 51% year‑on‑year increase in total income to ₹160.09 crore for the quarter, with EBITDA climbing 38% to ₹6.41 crore and net profit soaring 262% to ₹1.91 crore. The nine‑month figures echoed this momentum, delivering a 32.7% rise in revenue to ₹472 crore and a 17% uplift in EBITDA.
The company attributes the performance to higher capacity utilization, cost‑efficiency measures, and a balanced product mix that includes stainless steel billets, wire rods, bright bars and TMT bars. Direct‑bullet‑charging technology has improved energy efficiency, while a recycling‑based steelmaking model underpins its “green steel” positioning. Rathi Steel benefits from favorable policy tailwinds: the Union budget’s ₹12.2 lakh‑crore capex plan, specialty‑steel PLI incentives, and tariff reductions under new FTAs that boost domestic demand for high‑grade steel.
Management also addressed operational and financial queries, noting current melt‑shop utilization at 60‑65% with a target of 80‑85% after completing capex for hot‑bullet charging in the TMT mill. Gross debt stands at ₹43.5 crore, with borrowing costs falling sharply from previous high‑cost restructuring periods. The firm holds CBAM certification and is pursuing additional green‑steel recognitions, reinforcing its ESG credentials.
Looking ahead, Rathi Steel expects margin expansion as utilization rises and cost‑saving initiatives bear fruit. Its alignment with India’s decarbonisation agenda and infrastructure growth positions the company for sustained demand, while a broadened dealer network and focus on premium grades like FE550D aim to capture higher‑value contracts.
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