Rathi Steel & Power Ltd-$ — Q1 FY27 earnings call
Summary generated by AI from the official transcript Rathi Steel & Power Ltd-$ filed with BSE on 27 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Rathi Steel & Power reported Q1 FY27 total income of INR193.67 crores, up 24.6% year-on-year, with EBITDA of INR7.77 crores and PAT of INR3.48 crores, up 84.5%. Total volumes rose approximately 30% to 28,372 metric tons, driven by TMT bar volumes more than doubling to about 18,677 metric tons, while stainless steel volumes were softer due to export-market disruptions. Management discussed rolling mill utilization, ongoing integration of TMT operations with the melting shop, capex plans, and working capital and refinancing initiatives.
Numbers mentioned
Total income: INR193.67 crores (Q1 FY27)
p. 4
“Total income for the quarter stood at INR193.67 crores, registering a year-on-year growth of 24.6%.”
Udit Rathi, page 4 of the filed PDF · View the filing
EBITDA: INR7.77 crores (Q1 FY27)
p. 4
“EBITDA stood at INR7.77 crores, reflecting growth of 24.83% on a year-to-year basis.”
Udit Rathi, page 4 of the filed PDF · View the filing
Profit after tax: INR3.48 crores (Q1 FY27)
p. 4
“Profit after tax stood at INR3.48 crores, registering a strong year-to-year growth of almost 85%, 84.5% to be precise.”
Udit Rathi, page 4 of the filed PDF · View the filing
PAT margin: 1.8% (Q1 FY27)
p. 4
“PAT margins improved to 1.8%, representing an expansion of 58 basis points over the corresponding period last year.”
Udit Rathi, page 4 of the filed PDF · View the filing
Total volumes: 28,372 metric tons (Q1 FY27)
p. 4
“Total volumes increased by approximately 30% on a year-to-year basis to 28,372 metric tons compared to 21,864 metric tons in Q1 FY26.”
Udit Rathi, page 4 of the filed PDF · View the filing
TMT bar volumes: approximately 18,677 metric tons (Q1 FY27)
p. 4
“TMT bar volumes grew by more than double to approximately 18,677 metric tons from approximately 8,200 metric tons in the corresponding quarter last year.”
Udit Rathi, page 4 of the filed PDF · View the filing
Rolling mill utilization: close to 51%, 52% (FY26)
p. 5
“I think there was a remarkable improvement between 25- 26. '26 we achieved almost the utilization of close to 51%, 52%.”
Udit Rathi, page 5 of the filed PDF · View the filing
Capex incurred so far: around INR4 crores to INR5 crores (FY27 to date)
p. 6
“FY27, it must be -- I may not have an exact figure, but it must be in the range of around INR4 crores to INR5 crores.”
Udit Rathi, page 6 of the filed PDF · View the filing
Renewable power consumption: in the range of around 20%
p. 7
“So, the renewable total consumption of renewable power should be in the range of around 20%.”
Udit Rathi, page 7 of the filed PDF · View the filing
TMT revenue mix: close to around 45% to 48% (Q1 FY27)
p. 11
“So my TMT overall in the Q1 in the revenue mix will be close to around 45% to 48%.”
Udit Rathi, page 11 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Rolling mill utilization — in excess of 60% · FY27
stated firmly by Udit Rathi
p. 5
“So yes, we are still maintaining our guidance of what we have spoken earlier of achieving the utilization in excess of 60% for the rolling mill, as far as the rolling mill utilization is concerned for this, for this financial year.”
Udit Rathi, page 5 of the filed PDF · View the filing
Full-year capex — close to INR15 crores plus · FY27
stated firmly by Udit Rathi
p. 6
“So I'm, expecting a capex spend of close to INR15 crores plus this year as well.”
Udit Rathi, page 6 of the filed PDF · View the filing
Revenue CAGR — over a 20% CAGR · over the next two, three years
stated as an aspiration by Udit Rathi
p. 9
“We gave a guidance of over a 20% CAGR growth then for the we mentioned that we would aspire to grow at 20% CAGR over the next two, three years.”
Udit Rathi, page 9 of the filed PDF · View the filing
EBITDA margin improvement — a 2% to 3% improvement overall · gradually, roughly two years
stated as an aspiration by Udit Rathi
p. 14
“I think there should be a maybe a 2% to 3% improvement overall going forward. That is what we are looking at.”
Udit Rathi, page 14 of the filed PDF · View the filing
Melt shop utilization before expansion — more than around 70% to 75%
stated conditionally by Udit Rathi
p. 6
“And once, once we are able to achieve more than around 70% to 75%, then we'll be looking at expanding it further.”
Udit Rathi, page 6 of the filed PDF · View the filing
TMT direct charging integration full ramp-up — Q4
stated as an aspiration by Udit Rathi
p. 16
“And on a full throttle basis, I would expect sort of that to pick up, to be picked up by Q4.”
Udit Rathi, page 16 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said it could not disclose exact numbers but hoped to maintain the same momentum, subject to monsoon impact.
Answered by Udit Rathi
Asked by Keval Gala: What monthly dispatch run rate is being seen in July/August, and is Q1 momentum sustaining?
p. 5
“But yes, we hope to maintain the same momentum as what we achieved in Q1.”
Udit Rathi, page 5 of the filed PDF · View the filing
Stainless steel volumes were softer by about 10-12% year-on-year due to geopolitical disruptions affecting export-oriented end-users.
Answered by Udit Rathi
Asked by Keval Gala: How did stainless steel volumes perform in Q1 and what are Q2 trends?
p. 5
“I think we did about 9,000, approximately it was soft to the extent of approximately around 10% or so, 10% to 12% as compared to corresponding figures of last year.”
Udit Rathi, page 5 of the filed PDF · View the filing
Renewable consumption remains in excess of 25%, with flexibility to adjust based on pricing.
Answered by Udit Rathi
Asked by Rachi Jain: What proportion of electricity is sourced via renewable open access, and has it increased?
p. 7
“I think the total consumption of renewables still continues to be in excess of 25%.”
Udit Rathi, page 7 of the filed PDF · View the filing
The brand belongs to a family trust and the fee paid is negligible.
Answered by Udit Rathi
Asked by Priya Jain: What royalty does the company pay for the Rathi brand?
p. 7
“It is hardly INR400 to INR500 per annum nothing beyond that.”
Udit Rathi, page 7 of the filed PDF · View the filing
TMT is close to 45-48% of revenue, with the remainder from stainless steel.
Answered by Udit Rathi
Asked by Devang Mehta: What is the current revenue mix between stainless steel and TMT?
p. 11
“So we are almost if I say broadly, we are almost equal in terms of revenue between stainless steel and TMT bars.”
Udit Rathi, page 11 of the filed PDF · View the filing
Management cited volume/CAGR growth, cheaper working capital access via refinancing, and integrating TMT 550D operations.
Answered by Udit Rathi
Asked by Deepak Poddar: What are the top levers for EBITDA margin improvement?
p. 14
“So number one would be to ramp up the capacity and maintain a CAGR growth of in excess we've given a guidance of 20%.”
Udit Rathi, page 14 of the filed PDF · View the filing
Management expects teething issues to be resolved and full-scale operation by Q4, given monsoon and pollution-related construction slowdowns in Q2 and Q3.
Answered by Udit Rathi
Asked by Keval Gala: When will the TMT direct charging trial run be completed and commercial operations begin?
p. 16
“And right now it's, the, the, the season is also, it's like monsoon season, so the demand of the TMT bars is also a little subdued.”
Udit Rathi, page 16 of the filed PDF · View the filing
Management said they are still assessing feasibility with suppliers and have not finalized plans.
Answered by Udit Rathi
Asked by Keval Gala: Is there an update on the rooftop solar initiative?
p. 16
“No, we are still in talks with the suppliers.”
Udit Rathi, page 16 of the filed PDF · View the filing
Risks flagged
Softer steel realizations and volatile energy prices in the operating environment
p. 4
“which remained characterized by softer steel realizations, volatile energy prices, geopolitical uncertainties, and fluctuating demand across certain end-user industries.”
Udit Rathi, page 4 of the filed PDF · View the filing
Export market disruptions affecting stainless steel end-users
p. 5
“So, because of the ocean freight going very high and other factors disturbing the overall export market, so that, that sort of hampered the volumes.”
Udit Rathi, page 5 of the filed PDF · View the filing
Geopolitical issues in West Asia remaining unresolved
p. 5
“these times are, are not fully resolved, the issues which are going on in West Asia.”
Udit Rathi, page 5 of the filed PDF · View the filing
Increased competitive supply in stainless steel from ramped-up IBC-acquired units
p. 10
“there has been a period of a sort of a demand-supply mismatch or a supply more than what ideally as an industry we would have liked.”
Udit Rathi, page 10 of the filed PDF · View the filing
Monsoon season and construction pollution restrictions in NCR affecting TMT demand
p. 16
“Reason being that this, Q2 right now is monsoons and Q3 in the NCR region, the, the construction activities get halted because of the rising pollution.”
Udit Rathi, page 16 of the filed PDF · View the filing
Higher cost of borrowing relative to peers impacting margins
p. 13
“if I look at the difference between my healthy peers and myself, that is one factor where we would like to improve upon.”
Udit Rathi, page 13 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.