RAIN Industries provided commentary on its 2025 audited results, highlighting stable operations despite global volatility, particularly in the Middle East. Key segments showed mixed performance: Carbon utilization is improving following relaxation of Indian import restrictions, while the Advanced Materials business faced margin pressure from energy costs and Asian competition. The company is prioritizing continuity of supply, balance sheet discipline, and strategic investment in the growing energy storage sector.
Financial Commentary and Global Volatility
Management noted a difference in assessment regarding the Middle East following sharp escalation in geo-political hostilities, which significantly impacted global energy markets and freight. While RAIN is monitoring the situation closely, the company believes its diversified footprint and flexible logistics position it well to absorb regional disruptions. U.S. tariffs were confirmed to have no direct or material impact as key products are exempt.
Carbon Segment Performance and Outlook
Capacity utilization in India’s two calcination plants has improved to approximately 90 percent or higher following the relaxation of import restrictions. Globally, calcination is running at about 70 percent, with expectations for increases in the second half of 2026. The distillation business volumes were lower in Q4 2025 due to customer-related factors, including an unplanned smelter outage. The new CTP facility in India is targeted for a start-up in the fourth quarter of 2027.
Regarding GPC pricing, the primary driver for increases in Q2 2025 was the growing demand from the Battery Anode Material (BAM) industry, creating competition for low-sulphur GPC.
Advanced Materials Segment Headwinds
The Advanced Materials segment experienced pressure, reflecting seasonality (lower volumes in Q4 and Q1). The Resins business suffered due to higher European energy costs and pricing competition from Asia. The Chemical Intermediates business was impacted by a significant decline in crude benzene quotations during 2025, leading to inventory valuation losses.
On the energy storage materials side, RAIN is focusing on its demonstration facility in Canada. Strategy involves disciplined investment backed by supply agreements. R&D efforts continue to advance environmentally friendly materials, including exploring the market for MCMB (mesophase carbon microbeads) in North America.
Financial Discipline and Capital Allocation
Management reported positive net income for the third consecutive quarter, with EBITDA improving from ₹14,981 Million in CY 2024 to ₹22,749 Million in CY 2025. Net working capital increased by ₹13,729 Million, primarily due to higher inventory values and the ramp-up of the SEZ facility.
The Net-Debt-to-EBITDA ratio improved from 3.9x (Dec ’24) to 3.2x (Dec ’25). The company remains focused on deleveraging and anticipates further improvement in 2026, although specific targets are dependent on external factors. Capex for 2026 is expected to increase moderately to between $60 million and $65 million USD, prioritizing mandatory and compliance-related projects.
Regarding OCI movements, the majority of the ₹8.8 billion Rupees movement was due to translation gains (₹7.1 billion Rupees) from consolidating foreign operations, deemed a non-economic accounting effect.
Cement Segment Deferral
The planned brownfield expansion in the Cement segment was deferred. This decision was based on intensified competition in South India, muted demand due to extended monsoons, and slower-than-expected infrastructure progress. The time will be used to optimize the project’s cost structure.
Receivable Write-Off Details
A write-off was recognized covering outstanding receivables and the equity stake in a German joint venture due to its insolvency filing. This was a non-recurring accounting impact resulting from unrecoverable amounts owed for past product deliveries and the full impairment of the minority equity investment. Management confirmed no disruption to European operations or customer channels.
Source: BSE
