RHI Magnesita India reports a significant 83% jump in net profit in Q1 FY27 driven by strategic shift to solution-led engagement, despite facing ongoing pricing pressures and competitive challenges in the refractory market.
RHI Magnesita India began FY27 with a sharp improvement in profitability, reporting revenue from operations of ₹1,014 crore for the quarter to June 30, up 6% from a year earlier, while profit after tax climbed 83% to ₹65 crore. Operating EBITDA rose 42% to ₹147 crore and margins widened to 14.5% from 10.8%, even as management continued to flag pricing pressure, input cost inflation and intense competition in the refractory market. Despite the stronger numbers, shares fell 5.29% on the results day to ₹393.55.
Chairman Parmod Sagar said the company had delivered a strong start to the year, crediting its 4PRO business model and deeper customer relationships for helping offset a difficult operating backdrop. The model, which emphasises solution-led engagement rather than simple product supply, has become central to the company’s pitch as it serves steel, cement, glass and other heavy industries that rely on high-temperature materials. Pankaj Malhan has taken over as managing director and chief executive, while Sagar remains chairman.
The quarter’s improvement also suggests that RHI Magnesita is extracting more profit from each rupee of sales rather than relying on volume growth alone. Shipment volumes were 122 kilotonnes, and the company said its net cash to EBITDA ratio stood at 0.27 times, a sign of a comfortable balance sheet. Trade Brains noted that the company operates eight plants, two mines and a research centre, giving it a broad manufacturing base as it seeks to defend margins in a cyclical industry.
There were, however, mixed signals in the wider market commentary. LiveMint, in a separate results update, reported total income of ₹960.32 crore and profit after tax of ₹35.27 crore, underlining how different accounting measures and reporting cuts can affect the headline read-out from the same quarter. Even so, the broader picture remains one of a company that has improved profitability meaningfully while also warning that the operating environment is still far from settled.
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