Rain Industries Limited announced its financial results for the third quarter ended September 30, 2026. The company reported stable revenues despite lower volumes, attributed to improved product realisations and operational efficiencies. The Carbon segment saw a significant increase in net revenue by 22% year-on-year, contributing positively to the overall EBITDA growth, which was 38% higher than the previous year’s third quarter. Management highlighted efforts to normalize margins and manage costs amidst commodity price volatility.
Rain Industries Q3 2026 Financial Highlights
Rain Industries Limited has released its Un-Audited Financial Results for the third quarter ended September 30, 2026. The management commentary revealed a mixed performance across segments, with overall revenue remaining stable due to improved realisations despite lower volumes. The company emphasized a 38 percent year-on-year increase in Carbon Adjusted EBITDA, driven by enhanced realisations, operating efficiencies, and cost control measures, rather than solely by inventory effects.
Segment Performance and Outlook
Carbon Segment
The Carbon segment’s net revenue increased by approximately 22 percent year-on-year to 39.8 billion Rupees in the third quarter, despite a decrease in volumes. Management attributed the improved EBITDA to lower-cost inventory carried over from earlier periods, though this benefit is expected to unwind. While calcination margins improved sequentially, distillation margins eased due to higher raw material and energy costs. Looking ahead, Carbon margins are anticipated to normalize from their elevated first-half levels, influenced by market prices and energy costs.
Other Businesses
Advanced Materials plants operated at steady rates. Cement sales volumes rose to approximately 670 thousand tonnes in the quarter, but the segment recorded an Adjusted EBITDA loss of 113 million Rupees due to increased fuel, coal, and freight costs, coupled with investment in a new brand launch. The South India cement expansion has been deferred, pending market conditions and expected returns.
Financial Position and Capital Allocation
Net working capital saw an increase, rising to approximately 623 million US dollars by the end of June 2026, though a release of 35 million dollars was observed in the third quarter. The company is focused on reducing working capital and debt. Refinancing efforts are underway to lower costs and extend maturities, particularly for the 12.25 percent Senior Secured Notes and the Term Loan B. The company aims to reduce debt to a sustainable level and is evaluating options for returning surplus capital to shareholders, including dividends and potential share buybacks, once immediate priorities are met.
Strategic Initiatives
Rain Industries is actively monitoring developments in inert-anode technology for aluminum production and continues to invest in R&D for new-age materials, including those for energy storage applications. The company’s approach to new-age materials is cautious, focusing on by-product streams and partnerships to share development risk and accelerate qualification. Efforts are also being made to reduce carbon footprint and explore alternative raw materials for more sustainable operations.
Source: BSE
