RHI Magnesita India Q3 PAT Soars QoQ, But 9-Month Profit Falls 18%
Overview
RHI Magnesita India reported strong sequential growth in Q3 FY26, with consolidated Net Profit surging 87.46% QoQ to ₹61.56 Cr on 5.47% revenue growth. However, year-to-date figures show a 18.73% decline in consolidated Net Profit for the nine months ended December 31, 2025, falling to ₹135.17 Cr. The company also completed a ₹14.12 Cr acquisition of Ashwath Technologies.
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📉 The Financial Deep Dive
- The Numbers:
- Standalone Q3 FY26 Revenue: ₹9,034.80 Cr (+16.68% YoY, +4.79% QoQ).
- Standalone Q3 FY26 Net Profit: ₹68.90 Cr (+22.66% YoY, +66.85% QoQ).
- Standalone Q3 FY26 Basic EPS: ₹3.34 (+YoY, +QoQ).
- Consolidated Q3 FY26 Revenue: ₹10,920.14 Cr (+8.04% YoY, +5.47% QoQ).
- Consolidated Q3 FY26 Net Profit: ₹61.56 Cr (+29.48% YoY, +87.46% QoQ).
- Consolidated Q3 FY26 Basic EPS: ₹2.09 (-YoY, +QoQ).
- 9M FY26 Standalone Net Profit: ₹156.73 Cr (-16.01% YoY).
- 9M FY26 Consolidated Net Profit: ₹135.17 Cr (-18.73% YoY). - The Quality:
- Standalone Q3 PAT showed strong sequential growth, and consolidated Q3 PAT also saw a robust QoQ jump, indicating a favourable recent quarter.
- However, the year-to-date performance (9 months) is a significant concern, with consolidated Net Profit down 18.73% YoY. This suggests underlying challenges or headwinds faced earlier in the fiscal year, impacting overall profitability despite a strong Q3.
- Consolidated EPS showed a YoY decrease in Q3 (₹2.09 vs ₹2.30), which contrasts with the standalone EPS increase, potentially highlighting differing performance trends or impacts across subsidiaries. - Risks & Outlook:
- The substantial YoY decline in 9-month net profit for both standalone and consolidated books is a key risk, signalling that the momentum seen in Q3 may not fully offset prior year performance, and investors will watch closely if this trend reverses significantly.
- The divergence between standalone and consolidated EPS requires scrutiny to understand the operational health and financial contributions of individual subsidiaries.
- The acquisition of Ashwath Technologies for ₹14.12 Cr is a strategic move, but its immediate financial impact and contribution to future earnings are yet to be fully assessed. - Key Events:
- Acquisition: On August 01, 2025, RHI Magnesita India's wholly-owned subsidiary, Intermetal Engineers (India) Private Limited (IEIPL), acquired 100% shareholding of Ashwath Technologies Private Limited for ₹14.12 Cr.
- Merger: The scheme of merger of erstwhile RHI Magnesita Seven Refractories Limited with RHI Magnesita India Refractories Limited (a wholly-owned subsidiary) became effective from February 02, 2026. As both entities are wholly owned subsidiaries, the merger has no impact on the Consolidated Unaudited Financial Results for the period ended December 31, 2025.
