RHI MAGNESITA INDIA LTD has informed the Exchange about Earning Call Transcript
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RHI Magnesita India reported Q1 FY26 revenue of INR 960 crores, up 9% year-on-year, with shipment volumes growing 13% to 129 kilotons driven by regained market share across segments. Operating EBITDA rose 10% sequentially to INR 103 crores, improving margins to 10.8% from 10.2% in Q4 FY25, while profit after tax stood at INR 35 crores. YoY margins declined 51% due to high-cost alumina inventory flowing through the P&L, but management expects this to taper by September. Management guided for quarter-on-quarter margin improvement in Q2 and Q3, with full-year EBITDA margin target of matching last year's 13.7% levels, supported by secured price increases and easing raw material costs. The company acquired Ashwath Technology via its subsidiary to strengthen steel flow control capabilities and plans to almost double capex to ~INR 150 crores this year, primarily for Dalmia plant modernization.
Near-term margin trajectory is positive as high-cost alumina inventory unwinds and pricing initiatives take effect, though the stock faces commodity market headwinds and intense Chinese competition in magnesia-based products. The acquisition of Ashwath Technology and 4 PRO model rollout (including India's first robotics solution in continuous casting) position the company for long-term margin expansion and differentiation from commoditized competition.