Rathi Steel & Power Ltd. Delivers Resilient Performance, Commences Production of TMT Bars
Rathi Steel and Power Limited, a trusted name in India's Stainless Steel and long steel segment, has reported a robust performance in the first quarter of FY 26. The company commenced production of TMT bars, which will not only enable the company to sweat out the existing assets but also lead to incremental revenue and margins. This move also aligns with their vision to increase brand visibility and open up new business opportunities. The cost optimization project of direct rolling has started to deliver promising results, with the net power and fuel costs going down. The capacity utilization of the rolling mill division has improved substantially, while the capacity utilization of Steel Melting division dropped marginally due to planned maintenance shut down in April ‘25.
Key Highlights
- Commenced production of TMT bars, enabling the company to sweat out existing assets and leading to incremental revenue and margins.
- Direct rolling cost optimization project has started to deliver promising results, with net power and fuel costs going down.
- Improved capacity utilization of the rolling mill division from approx. 25% to 39% on a YOY basis.
- Decreased capacity utilization of Steel Melting division to about 55% from 64% on a YOY basis due to planned maintenance shut down in April ‘25.
- Increased total revenues of 155.40 Crores, an increase of approx. 22% compared to the corresponding quarter of last year.