Rathi Steel and Power reports a substantial increase in first-quarter FY27 profit driven by higher volumes and an improved product mix, amidst a mixed industry backdrop influenced by volatile energy costs and fluctuating steel prices.
Rathi Steel and Power said its first-quarter FY27 profit surged as higher volumes and a stronger mix of products helped offset a difficult operating backdrop marked by volatile energy costs and softer steel prices. The Ghaziabad-based maker of stainless steel long products and TMT bars reported total income of Rs 193.67 crore for the quarter, up 24.63% from a year earlier, while profit after tax rose 84.56% to Rs 3.48 crore, according to the company’s unaudited results.
Sales volumes climbed about 30% year on year to 28,372 tonnes, with TMT rebar emerging as the main growth engine. The company said TMT rebar sales more than doubled to 18,677 tonnes from 8,295 tonnes a year earlier, helping improve the overall product mix. Earnings before interest, tax, depreciation and amortisation rose 24.83% to Rs 7.77 crore, although the EBITDA margin remained modest at 4.01%.
The results come against a mixed backdrop for India’s steel sector. JSW Steel reported a sharp rise in first-quarter profit and revenue, helped by stronger prices and volumes, while Steel Authority of India posted a large jump in profit despite flat revenue. Jindal Steel, by contrast, reported lower profit even as income increased, highlighting the uneven impact of maintenance shutdowns, realisations and operating costs across the industry.
Udit Rathi, the company’s promoter, said in the announcement that recent easing in some raw-material prices has offered a somewhat better cost environment, though geopolitics and energy markets remain uncertain. He said the company plans to keep focusing on volume growth, deeper market penetration, product-mix improvement and cost control as it looks to build on its performance through FY27. Rathi Steel said it also benefits from operating across both stainless steel products and MS TMT rebars, which it says gives it more flexibility as demand shifts.
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