Rathi Steel & Power Ltd

BSE: 504903

₹ 17.98-0.99%refreshed 26 Oct, 01:43 pm ISTMarket cap: ₹ 155 crWebsite: www.rathisteelandpower.comUpdated: 24 Oct 2026

About

Rathi Steel & Power makes long steel products at one integrated plant in Ghaziabad, Uttar Pradesh: stainless steel billets, wire rods and flats, and mild steel TMT bars sold under the Rathi brand. Total income for FY26 was about INR716 crores. Stainless steel accounted for roughly 60% of that and TMT bars for roughly 40%. The FY26 annual report describes RATHI as the most popular construction steel brand for decades, especially in the NCR.^[1][2][3]

Business segments

Revenue mix in Q1 FY27: TMT bars about 45-48%, stainless steel the rest. In FY26 it was about 60% B2B stainless steel and about 40% TMT bars.^[4][3]
Stainless steel is fully integrated into the melt shop. For TMT, the company still mostly buys semis from the market, reheats them and rolls them (as of Q1 FY27).^[4]
In H1 FY26, stainless steel made up 60-65% of revenue and TMT about 30%.^[5]

Products and certifications

Products: stainless steel billets, wire rods and flats, and mild steel TMT bars for construction (FY26 annual report).^[1]
Holds BIS licences for stainless steel reinforcement rebars and for TMT rebars in grades Fe 500, Fe 550 and Fe 550 D.^[1]
CII granted the GreenPro Type-1 Ecolabel to Rathi Powertech Fe 550 TMT bars, announced in the Q4 FY26 call.^[3][1]
The Ghaziabad plant holds ISO 9001:2015, ISO 14001:2015 and ISO 45001:2018. The company has held CBAM certification for two years (as of Q3 FY26).^[1][6]
Stainless steel rebar adoption has been slower than management expected, as stated in the Q2 and Q3 FY26 calls.^[6][5]

Operations

One integrated plant in Ghaziabad, Uttar Pradesh, on about 12.5 acres. It uses electric induction furnaces to process scrap and automated rolling mills.^[1]
Rolling capacity is 2,00,000 TPA (Q2 FY26). The TMT mill restarted in April 2025.^[5]
The report says Rathi was the first Indian company to adopt hot charging of SS billets to make wire rods. The company introduced it for wire rods around August 2024.^[1][5]
Renewable open-access power was about 20% of consumption in Q1 FY27, compared with more than one-fourth in FY26.^[4][3]
Employees: 260 as of 31 March 2026.^[1]

Key operating numbers

Total volumes: 28,372 MT in Q1 FY27 vs 21,864 MT in Q1 FY26 (+~30% YoY).^[4]
TMT bar volumes: 18,677 MT in Q1 FY27 vs ~8,200 MT in Q1 FY26.^[4]
Stainless steel volumes: ~9,000 MT in Q1 FY27, down ~10-12% YoY. Management linked the drop to high ocean freight hurting export-oriented end-users.^[4]
Rolled products output: 1,02,972 tonnes in FY26, up 117% YoY from around 47,440 tons in FY25. Billet production in FY26 was 45,452 tonnes.^[3]
Rolling mill utilisation: ~51.4% in FY26 vs ~24% in FY25. Steel melting shop utilisation: ~53% in FY26.^[3][6]
Raw materials were about 80% of sales in FY26.^[3]

Customers and distribution

Customers include real estate developers, builders, government supplies and the retail market (FY26 annual report).^[1]
Has about 300 TMT dealers across Northern India and targets large NCR developers. Repeat customers are over 70% of TMT volumes (Q3 FY26).^[6]
The stainless steel wire rod repeat-customer rate exceeds 90-95% (Q3 FY26).^[6]

Expansion and capex

Direct billet charging for the TMT mill: trial runs are complete and full commercial operation is targeted for Q4 FY27. The goal is to integrate 40-50% of TMT production this way.^[4]
Management expects direct charging to save INR3,000-4,000 per ton on TMT rolled via the direct route (stated in the Q4 FY26 call).^[3]
FY27 capex is expected at INR15 crores+, funded from internal accruals. About INR4-5 crores had been spent by Q1 FY27.^[4]
Management targets rolling mill utilisation above 60% in FY27. It will expand melting capacity only after melt shop utilisation exceeds 70-75%.^[4]
Rooftop solar of 1-2 MW is still under feasibility study with no timeline (as of Q1 FY27).^[4][3]

Recent developments

January 2026 brought the highest-ever monthly sales from the Ghaziabad facility, about INR77.45 crores.^[6]
In Q1 FY27, management was negotiating with lenders to refinance working capital at lower rates. The borrowing cost was 16% as of Q4 FY26.^[4][3]
A pollution control notice caused a temporary closure of the melt shop. It was resolved and operations resumed under conditions (Q2 FY26).^[5]
The company is exploring acquisitions in steel and allied sectors, with no target identified as of Q4 FY26.^[3]

Market Cap

₹155 Cr

High / Low

₹29 / 14

Stock P/E

10.9

Price / Book

1.1

Book Value

₹17

EPS

₹1.5

No. of Shares

8.64 Cr

ROCE

10.3%

ROE

9.0%

OPM

2.8%

Debt / Equity

0.30

Sales

₹716 Cr

Net Profit

₹13 Cr

Promoter holding

41.3%

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