Rathi Steel And Power Ltd (BSE: 504903) Q3 2026 Earnings Call dated Feb. 18, 2026
Corporate Participants:
Rajesh Jain — President
Analysts:
Parth Acharya — Analyst
Rudra Nath Colony — Analyst
Aditi Jain — Analyst
Raj Shah — Analyst
Meera Jain — Analyst
Yash Rathod — Analyst
Anish Garg — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Rathi Steel and Power Limited Q3 and 9 month FY26 results conference call hosted by Kirin Advisors Private Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr.
Parth Acharya from Kiran Advisors Private Limited. Thank you. And over to you sir.
Parth Acharya — Analyst
Thank you. Good evening everyone. On behalf of Kirin Advisor Private Limited I welcome you all to the conference call of Rati steel and Power Limited. From the management team we have Mr. Rajesh Jain, President, Mr. Pushal Agrawal, AVP of Growth and Strategy of the company. With that now hand over the call to Mr. Rajeshwar for the opening remarks. Over to you sir. Thank you.
Rajesh Jain — President
Thank you. Hello. Yeah. Good evening. Good evening ladies and gentlemen and a very warm welcome to all the investors, analysts and stakeholders joining us today for the Q3 and 9 months FY26 earning call of Rakis Power Limited.
We sincerely, sincerely appreciate your continued confidence and engagement with the company. Rati Steel and Power Ltd. Represents a legacy of over five decades anchored in credibility, metallurgical excellence and an unwavering commitment to the quality. The Rati name has been synonymous with structural strength since 1940 and today we advance that heritage through a modern technology driven and sustainability focused manufacturing approach. Our approximately 12.5 acres integrated facility in Ghaziabad OR operates with a steel melting capacity of around 85,000 tons per annum and a rolling capacity of 2 lakh tonnes per annum enabling scale efficiencies, operational resilience and disciplined cost optimization.
A key technological differentiator is our direct bullet charging technology in stainless steel wire rod manufacturing which enhances energy efficiency, reduces handling losses and strengthens cost competitiveness. Our diversified portfolio includes stainless steel billets, Vierodes, brine bars and TMT bars reinforcing our credibility into infrastructure and high specification construction projects. Green remains central to our strategic orientation. Our recycling based circular steel making model significantly lowers carbon intensity compared to the conventional primary. Aligning with India’s decarbonization priorities and rising ESG driven procurement standards. Growing demand of FE550 and FE550 degree CMT bars from leading real estate and infrastructure players across NCR representing compelling opportunity for the premium sustainably manufactured Steel Coming to our financial performance Q3 FY26 reflects strong operational execution.
Total income stood at rupees 160.09 crores up around 51%. Year on year basis, EBITDA was 6.41 crores registering a 38% growth while PAT rose to 1.91 growth up to 62% for nine months FY26 total income reached to 475, so 472 crores reflecting 32.67% growth over the corresponding period. Last year. EBITDA stood at 19 crores up 16.96 with PAT at 5.42 crores. Improved capacity utilization, cost efficiencies and a balanced product mix supported this performance. We all commenced Q4 with our highest monthly field of approximately 77.45 crores from the Galibak facility. The broader industry environment remains supportive.
The Union Bizarre 2026 has allocated 12.2 lakhs crore towards capital expenditure strengthening demand across railways, infrastructure, energy and urban development. Under the specialty PLI scheme, 80 bike MoU worth rupees 11.11887 crores have been signed with incentives ranging from 4 to 15% for high carbon steel production. Additionally, 20,000 crores have been earmarked for carbon capture and green steel transition reinforcing the policy push towards sustainable methodology. On the trade front, India EU FTA is moving tariff on most iron and steel products towards zero with over 70% of the tariff that lines seeing immediate duty elimination. Similarly, under the recalibrated India US Trade Framework, reciprocal tariffs have been reduced from around 50% to 18% across a broad industrial basket.
These measures enhance the competitiveness of engineering goods, machinery and automotive exports which in turn is expected to stimulate incremental domestic demand for high grade and stainless steel products across the value chain. Darthi Steel and Power Ltd. Stands at the intersection of legacy technology, technological capability and environmental responsibility. With a stainless steel portfolio and a firm commitment to energy efficient and green steel production, the company is structurally aligned with India’s infrastructure expansion and sustainable industrial growth. Thank you once again for your continued support. I now open the floor for questions. Thank you so much.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press STAR and one on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Riddha Nath Kolani from Kuber Advisors. Please go ahead.
Rudra Nath Colony
Yes, thank you.
operator
Sorry to interrupt. Mr. Kalani, can you please speak a little louder?
Rudra Nath Colony
Am I audible now?
operator
Yes.
Rudra Nath Colony
I could see the revenue growth has been strong in quarter three and nine months. So I just wanted to know the detailed product wise revenue and volume breakup. Stainless wire rods, billet stainless rebars and carbon debars. And if it would also help if you could explain this mix has evolved over the last four quarters.
Rajesh Jain
You’re up to. Sir, we will. We will send you the details which. Which is not the bifurcation is not with us right now. And we will definitely will send you the details bifurcation in terms of carbon HD as well as serious history.
Rudra Nath Colony
Okay. Okay. And also on the balance side the balance. So I just wanted to know the current gross debt and working capital borrowings as of Q3F and mix. What is the blended borrowing cost today as compared to two years ago?
Rajesh Jain
Two years ago we were with the in the debt reflecting mode. So that time the cost was much much higher. Now as on date the gross debt will be 43.50 crores. Right. And. And the cost of debt is going down and we are in the. We are making all of us to go down further as compared to the restructured ROI at the time of resetting.
It is much much lower as on date which you must have seen from the results. Also if you. If you see that that cost as of March 24 and the debt cost and debt amount or interest cost as on date it is much much lower. I can see that 2024 the debt cost was high. Now that that cost has gone down. We are making all of us to make it down further. We have appro. We are approaching lenders, other lenders to for at a higher lower rate of interest.
Rudra Nath Colony
I should see historically your margin has been in the range of 4 to 5%.
But when you see this mar clos closing for this financial year federal what is the realistic sustainable band for even to F27 and 28 assuming better realization and higher payless mix. Can you come again? I’m think margin has been in a range of 4 to 5%. But where do you see this margin closing for 26 closing and 27 and 28. Assuming we expect a better utilization and higher sale as faster.
Rajesh Jain
If there will be better regulation and the market is conducive then it will definitely go up because we are making various stages in our existing plant by which we are trying to reduce our direct cost.
So it will be Subject to market conditions which will be higher. With the higher capital. With the higher capital relation, the margins are differently. There is. There is always a fix fixed cost element which never increases with the volume.
Rudra Nath Colony
I could see your other expenses has increased from 17. Can you explain this? Yeah. If you track our company, in December 2024 we were not operating the TNT mill. Right. But in December 2025 we have restarted the TNT mill operations in April 2025. So. So when we restart the mill there is always a power cost. There is always a consumable cost which was.
Which was not there in 2024. Okay, so that’s the reason in actual terms it is higher as compared to 2024. And in terms of scrap sourcing, how diversified is your domestic procurement network? And are you seeing any tightening and availability or spread in recent months? Can you speak little louder? Yeah, I’m saying in terms of science, scrap sourcing, how diversified is your domestic retirement network?
Rajesh Jain
We have not seen any problem in sourcing the scrap because it’s readily available in the nearby areas. So my plant is never closed because of the non availability of scrap.
Rudra Nath Colony
Okay,
Rajesh Jain
so that is not a big problem at all.
That is not at all a problem for me.
Rudra Nath Colony
Okay, just one last question from my side. So on the demand part, where are we seeing currently strong traction from and which is realistic real estate infrastructure, Railways or commercial? Has this mix shifted meaningfully in the last two to three quarters?
Rajesh Jain
We are mainly focusing on the real estate sales, digital projects. All the developers in the NCR we are approaching all the big developers in the NCR for our TMP product. Of course my tailor system Vivac is B2B business and we sold SSY award to the various houses.
But for TNT we have approved initially we have approved all the private builders and developers which are in big name. You can also see those in our presentation. All the big names. We have supplied our TNT devastate. All the big names including weight redeeming and some others. Our first one is to cater all the developers thereafter. Yes, definitely we will approach to railway and other. Apart from. Apart from this. Yes we have a very wide lecture for distribution channel and we are also sending out that to the two distributors.
Rudra Nath Colony
Thank you. That’s all from.
operator
Thank you. Before we take the next question, I reminded to all the participants if you wish to ask a question please press star and 1. The next question is from the line of Aditi Jain from Wealth management consultancy. Please go ahead.
Aditi Jain
Hello. So my question is as we move towards the targeted 75 to 80% melting utilization, what kind of EBITDA margin expansion should we expect purely from operating leverage?
Rajesh Jain
Hello. Yeah, Good evening. Once we will move to 70 by to 80% capacity. Beta margin will definitely be much much higher. Subject to market conditions. We expect to grow at a CGR of 20% on a yearly basis.
Aditi Jain
Okay. And from an operational standpoint, how many days in the quarter does the plan typically remain shut due to the maintenance or technical downtime? Is there any planned major shutdown ahead that we should factor into the volume guidance?
Rajesh Jain
Except. Except the normal shutdown. We don’t foresee any major shutdown. But the normal shutdown is only for a day or two. Nothing else in a month. Not more than that.
Aditi Jain
Okay. And what is the current working capital cycle as of nine months? 2026. In the terms of receivable days, inventory days and payable days. How has this trended over the past two years? Post deleveraging.
Rajesh Jain
Receivable deal is somewhere around 35 to 45 days. 30 to 45 days. And inventory inventory is somewhere around 25 to 35 days.
Aditi Jain
Okay. And also you have highlighted green steel positioning. Have you received or applied for any recognized certification such as responsible steel environmental product declaration, ISO Carbon reporting?
Rajesh Jain
Yeah. Yeah. We have already certification of CBAM carbon border adjustment technology and which we are receiving on the past two years. Apart from this we have also applied for the Green Pro. And we are also in the discussion for the green certification with the consultants. So as we told earlier also we are planning to synchronize with our another holding mill to the SMS and post the synchronization and the conveyor belt. Of course we will apply for the green steel also. And my this Green Pro certification from CII expected in this quarter or maybe the early next quarter.
Aditi Jain
Okay, thank you. That’s it.
operator
Thank you. A reminder to all the participants that you may press star and one to ask a question. The next question is in the line of Rajshah from Shah Ranches. Please go ahead.
Raj Shah
Yeah. Hi, good afternoon. Could you give me a sense of where still melting utilization stands today in tonnage terms of quarter three and nine months. FY26. Like what specific operational constraints need to be addressed to reach 80%?
Rajesh Jain
I. I’ll give you a percentage. Percentage terms. It. It is in the range of 60 to 65%. Inflation is in the range of 60 to 65%. And we propose to increase it to 80 to 85%.
Raj Shah
Okay. And what specific like operational constraints need to be addressed to reach 80%? Like what will. What would be your approach? Sir,
Rajesh Jain
as I told you that we are in the process of doing direct charging of hot blood for for my TMT mill.
Also we have direct charging of hot BL for stainless steel mill. Right? So now now we in the process of completing the capex plan for direct charging of hot BL for TNT mill so that that process will be completed by in this quarter or the next quarter once the that process gets complete. So my cap will be much much higher. As on day we don’t we have no issues as far as increasing the capacity.
Raj Shah
Okay. And in terms of customer profile as well, I just want to know like are you seeing larger developers of EPC players increasingly specifically for the FE550G or stainless rebar? Like is there any pricing premium being realized for green or stainless positioning?
Rajesh Jain
We also explained in our last meeting also the stainless steel is not grow in the way we anticipate.
Of course there’s a future. The future hu of course is 10 SS1 but the way the way the speed we anticipate it is not the developing. So it is for sure that in the near future 550 beam is the very good brand and we will visible the very good demand for the product. At present also there is a the developers with all these developers are reviewing 550D and we have also developed and made sure that our product will be at par with all the primary producer of 550°. So yes, for the near future we are looking for the 550 for the use of 550 degrees.
But just for the postal drill for the burden projects there is a great demand for the stainless steel.
Raj Shah
Okay, got it. And from I just also want to know from a defense and strategic infrastructure perspective, are you engaging with any defense contractor like real infrastructure players or public sector EPC firms where qualification standards are more stringent?
Rajesh Jain
Not, not yet. Not yet. We are. We are first focusing to swallow our assets and thereafter of course when we have to after completion all our adjacent project timing with like the conveyor just conveying system with the YTMP and all.
After that of course we will again focus on the other areas.
Raj Shah
Okay. And with regards to borrowings as well, do you expect a short term working capital limit to reduce as utilization stabilization will higher volumes naturally requires a larger working capital base.
Rajesh Jain
No, no, no. You know, last year the node of 500 crores we are working capital of only 35 crores. Our size company is much much on a lower side. So as and when the volume will increase, we will definitely be looking for higher working capital. And we are trying to reduce the cost of debt also.
We are making all of us to reduce cost of debt by approaching new lenders.
Raj Shah
Okay. Okay. And how many dealers we currently have? Sir,
Rajesh Jain
we have around 300 dealers spread all over northern India. We have Rati steel shop shops also. Besides that forest industry we do B2B business. Okay. Setting UPI projects is not a problem at all.
Raj Shah
Okay. It’s not like that. It’s not that dead. I. I keep on. And I. I keep on keeping the inventory. No, it is not like that.
Rajesh Jain
Raki is a very very reputed brand in northern India. And we don’t.
We have never seen any problem in selling the products. In quality of the products. So selling. Selling part is not an issue at all for me.
Raj Shah
Uhhuh. Sir, I also want about like any current credit period provided to whom for like how long the current credit is. The current credit period is provided for dealers to the dealers.
Rajesh Jain
It. It. It depends. It depends from dealer to dealer and project to crude. But it ranges from 30 to 60 days.
Raj Shah
Okay. Okay. Got it. Got it. Sir. Yes, that’s it from my side. Sir, thank you so much for giving the insights for the business. Yes, that’s it. That’s all from my side. Thank you.
Rajesh Jain
Thank you so much. Thank you.
operator
Thank you. The next question is in the line of Meera Jain from Green Capital. Please go ahead. Meera, your line is unmuted. Please proceed.
Meera Jain
Hello. Yes, you are. Yeah. Yes sir. So few questions I have today. So on export side do you see any direct opportunity to sell this products given the trade? Are you set with unusual even if not directly. Do any of your clients have significant exposure to those market that could indirectly benefit our volumes?
Rajesh Jain
We are not doing any exports to you or us. But our dealers they. I think they are definitely supplying. Doing exports of our products.
Meera Jain
Okay. And currently which states contribute the largest share of revenue? Are you considering expensive into western or southern India where St. Consum maybe.
Rajesh Jain
No, no no. Steel. Steel. When you talk of tmt logistically it is very costly. If you go to southern India or some other part. We are focusing on northern India only for TNT bars for and for steel vials also we. Our focus is mainly on northern northern India.
Meera Jain
Okay. And if you talk about yeah
Rajesh Jain
like Rajasthan. But that is only for the by road not put the team into it.
Meera Jain
Okay. And you know one rooftop solar installed and what percent of total power condition could step towards renewable sources and what is expected?
Rajesh Jain
We have not yet. I mean called up a plant. But we have. We have again the discussion with the consultant because I mean to. To check what Best we could install what this capacity we can install.
Meera Jain
Are you looking for any in inorganic growth? I mean or something? Are you looking for any inorganic growth like.
Rajesh Jain
We. We are definitely looking for some acquisition and all but that will be subject to. It will enhance our existing plant which will be in line with our existing projects. Also.
Meera Jain
What is the guidance for FY27?
Rajesh Jain
We have told this one again we expect to grow in a severe growth of 20%.
Meera Jain
Okay, so where we can see you in next five years?
Rajesh Jain
Next I give my. I think my return number will definitely be double to what I’m achieving today.
Meera Jain
Okay. And for any updates you know you like investors will look you know we can expect in coming weeks or in next quarter in solid update business related business and operations.
Rajesh Jain
Whenever there will be any availability. Definitely keep keep posting it on the BSE website.
Meera Jain
Yeah. Okay. Thank you. That is for myself.
Rajesh Jain
Thank you.
operator
Thank you. The next question is from the line of Yash Rathaur from Unique Solutions. Please go ahead.
Yash Rathod
Hello. Am I audible? Yeah. Good evening, sir. I had a few questions with me. The first question is is there any scope to move further downstream for example into fabricated or semi finished products to capture the additional margin there as of now the real focusing on consolidating our existing business. Once that get consolidated and my capital relation will be maximized then we’ll definitely think for that. Okay. The other question my side was from a cost structure standpoint, what proportion of the total cost is raw material versus power versus labor? Okay. My normal cost as you must have seen from the results in the range of 75 to 80%.
Approximately 13 acres. Our land holding it approximately 30 makers. Can we expand the current facility within existing land? Assuming we decide to do so? Yeah. Yeah. Land is adequate enough for me to do to going for a downstream production. Okay. And my last question was if we look three to five years out, what do you believe will differentiate you the most? Like in terms of scale, technology, green positioning or distribution trend or production?
Rajesh Jain
We are. We must appreciate the fact that these atheists are always always moving with the present trend. Right now we are also.
We are already manufacturing our most of the product with the scrap which is currently known as the green Mistv and all. So we are already manufacturing greenhouse TV and our future product like 550D or SS Bar is also based on the greenhouse. We are also purging power through the green power through the open access. And also we are making effort to install rooftop power plant. So of course we are already. We have recently updated our plant so that our Product will be the best in the market, best in the segment. We are already with the latest technology in the trend.
Yash Rathod
Okay. Thank you for that from my friend.
operator
Thank you. Anyone who wishes to ask a question may press star N1 at this time. The next question is from the line of Rajshah from Oakland Capital. Please go ahead.
Raj Shah
Yeah. Thank you for the opportunity. Sir, are there any specific regions or customer categories where margins are structurally better compared to your current portfolio?
Rajesh Jain
No. No. It is not like the case the margins. There are different margins for different products. But customer wise there is no differentiation as such. Okay, answer. Over the last few quarters have you seen any changes in dealer behavior like you know, stocking trends or credit appetite which might you know, signal demand acceleration or caution?
Rajesh Jain
No. No. You must. If you have seen our posting on the BSE website recently we achieved.
We have achieved the highest level turnover in January of 77 crores in a month. So had that the case, my turnover would. Would not have been highest. Whether we are looking for better days ahead.
Yash Rathod
Okay. Okay. Or answer like what percent or percentage of that revenue comes from repeat customers versus you know, new client acquisition.
Rajesh Jain
If you keep the product. My product is one is TNT Rebas which is used for a builder. When. When a builder purchase tnt. But of course he needs the same product for his each product. But when it comes to the individual person of definitely the person will purchase only once or twice.
Because after that they have to house is ready. They definitely do not need the bath. So like my. My other product, SS Wireless. It is the B2B product. It has various application like SS fasteners, SS wires. So the industries which are manufacturing in the process of manufacturing. Let’s say excess fasteners. They need to purchase my wire rod on regular basis. So this is the nature of our product. So my. In roughly you can say yes. For stainless steel product my. My existing. My repetitive client is more than 90, 95%. And for TNT bars it is more than 70% is my existing developers and suppliers of course including the my DMDs and distributors.
Yash Rathod
Okay. Yeah, sir, that’s it. From my side. I’ll join back with you if I have any more questions. Thank you, sir.
operator
Thank you. A reminder to all the participants. If you wish to ask a question you may press star N1. The next question is from the line of Anish Garb from Anish and Associates. Please go ahead.
Anish Garg
Yeah. A very good morning. Good evening sir. Am I audible?
Rajesh Jain
Yes.
Anish Garg
Okay, sir. So my question is are we importing the raw material from any country or the requirement is fulfilled. Locally only we are presently we are not importing to any country. Or if you. It is my requirement which is fulfilled by domestic or maybe the dealer who are providers of the fuel. Maybe we may be import some part. But we are not directly importing right now. So my follow up question is seeing the annual report of the. The last year. We have imported the raw material of 28 crores in the last year and 58 crores in the last last year.
So the reason.
Rajesh Jain
If you. If you compare with the percentage. I mean the percentage of raw material reported versus my sale for my purchase it will be hardly. Hardly 7 to 10%. So whenever we found it suitable to import the material, we will do so. But there is a lot of formalities and time involved for the import. And by the time the materials came to the Indian market the scenario may change. Presently we are focusing mainly on domestic raw materials. But as I mentioned, condition will be conducive and definitely going for imports. So from which country are we importing the raw material in the last years? From us.
We bought it from Europe. We imported from Dubai. We imported from Kuwait. It’s only the scrap part which comes from us, Europe or these countries. Otherwise all of the raw materials are local.
Anish Garg
Okay. Okay sir. Thank you. That’s from my side.
operator
Thank you. Participants, if you wish to ask a question, please press star and one at this time. As there are no questions from the participants I now hand the conference over to Mr. Path Acharya for closing comments. Over to you, sir.
Parth Acharya
Thank you everyone for joining the conference call of Raki Steel and Power Limited. If you have any further queries you can write us@researchadvisors.com Once again, thank you everyone for joining the conference. Thank you so much for your continued support. Thank you.
operator
Thank you very much on behalf of Kirin Advisors Private Limited. That concludes this conference. Thank you all for joining us today. And you may now disconnect your lines. Thank you.