RHI Magnesita India shares jump 8% after announcing its Q3 results; Check details

Synopsis: Shares of this small cap stock surged 8% after Q3 results showed 60% QoQ net profit growth and revenue above Rs. 1,000 cr for the second consecutive quarter, driven by operational efficiency, 4PRO contracts, and automation initiatives.

The shares of this company are in the business of manufacturing and marketing special refractory products, systems, and services to the steel industry in India and globally are in the spotlight after it rose by 8% following Q3 results with a 60 percent increase in net profit and revenue crossing Rs. 1,000 crore for the second straight quarter. 

With a market capitalisation of Rs. 9,430 cr, the shares of RHI Magnesita India Ltd were trading at Rs. 457.95 per share, increasing 8% in today’s market session, making a high of Rs. 471.50, up from its previous close of Rs. 437.10 per share. 

Q3 Results 

Revenue crosses Rs. 1,000 Cr for the second straight quarter. Comparing Q3FY26 to Q2FY26, RHI Magnesita reported a sales increase from Rs. 1,035 crore to Rs. 1,092 crore, marking a 5.5% rise in revenue. 

EBITDA saw a sharper growth from Rs. 109 crore to Rs. 143 crore, up 31%, reflecting improved operational efficiency. Net profit jumped from Rs. 38.4 crore to Rs. 61.6 crore, an impressive 60% increase, while EPS rose from Rs. 1.86 to Rs. 2.98, showing a 60% growth, highlighting strong profitability on a quarterly basis.

Compared to Q3FY25, RHI Magnesita’s revenue increased from Rs. 1,011 crore to Rs. 1,092 crore, up 8%. EBITDA improved from Rs. 125 crore to Rs. 143 crore, a 14% growth, while net profit grew from Rs. 47.5 crore to Rs. 61.6 crore, an increase of 30%. EPS rose from Rs. 2.30 to Rs. 2.98, a 29.5% growth year-over-year, indicating solid improvement in both top-line and bottom-line performance.

Business Highlights

RHI Magnesita India Ltd is the leading manufacturer and supplier of high-grade refractory products, systems and solutions which are critical for high-temperature processes exceeding 1,200°C in a wide range of industries, including steel, cement, non-ferrous metals and glass. 

During the quarter RHI Magnesita has secured 4PRO contracts across integrated steel plants and mini mills, ensuring long-term business. Iron-making is progressing as planned through OEM orders for coke ovens, DRI, and pellets. Efforts in product transfers and recipe localization under the ‘Make in India’ initiative are enhancing the company’s competitiveness.

The tap hole clay line in Jamshedpur has been revamped to meet rising demand and support iron-making initiatives. Operational efficiency is being strengthened through cost discipline and targeted excellence programs, while disciplined production planning and inventory management are improving cash flow efficiency.

RHI Magnesita’s 4PRO is India’s first complete robotic solution in caster operations, designed to revolutionise steelmaking. It handles tasks like ladle shroud changes, powder feeding in the tundish, sampling, bayonet coupling, and open frozen ladle operations. 

The system enhances safety by reducing human exposure, boosts productivity through faster and uninterrupted operations, ensures reliability with consistent task execution, and drives innovation via customized automation. Its proven success is helping the company expand market share in 4PRO contracts.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post RHI Magnesita India shares jump 8% after announcing its Q3 results; Check details appeared first on Trade Brains.