Rathi Steel & Power Reports Strong Q2 FY27 Growth

Revenue exceeds ₹200 crore; sales volume grows 28.86% to 32,028 MT.

Reader Takeaway: Revenue growth and interest cost reduction boost prospects, but operational success hinges on facility upgrades.

What just happened

Rathi Steel & Power Limited has released its unaudited operational performance for the quarter ended September 30, 2026. The company posted a revenue of over ₹200 crore, marking a 30% increase compared to the ₹156.43 crore recorded in the same period last year. Sales volume saw a significant uptick, reaching 32,028 MT from 24,855 MT in the previous year.

Why this matters

The company successfully negotiated a 450 basis point (bps) reduction in its interest rates with lenders, which is expected to lower its financial burden and improve margins. Management has also raised need-based capital to support business expansion, signaling active efforts to strengthen the balance sheet.

What changes now

Strategic focus is shifting toward higher utilization and value-added products. The company aims for 55–60% rolling mill utilization in FY27, up from 51–52% in FY26. It is also evaluating a major upgrade to its Ghaziabad melting shop to diversify its product portfolio beyond standard offerings.

Risks to watch

Success remains dependent on the execution of the melting shop upgrades and the ability to maintain a balanced product mix between stainless steel and TMT bars. Market volatility in raw material costs could also pressure margins.

What to track next

Investors should look for the upcoming full financial results to assess how the reduced interest burden translates into net profitability.