RAIN Industries reported positive momentum for the fiscal year ending December 31, 2025, marked by ₹167.91 billion in consolidated net revenue, an increase of ₹15.24 billion year-over-year. Adjusted EBITDA rose by ₹7.77 billion to ₹22.75 billion, primarily led by the Carbon segment. The company also highlighted significant progress in its Advanced Materials R&D and maintained strong financial flexibility with $340 million in liquidity.
Q4 2025 Financial Highlights and Annual Performance
RAIN Industries announced its financial results for the fourth quarter and the full year ended December 31, 2025. Sarang Pani, General Manager of Corporate Reporting and Investor Relations, kicked off the presentation by emphasizing the company’s continued focus on operational excellence and safety, noting an improved Total Recordable Incident Rate (TRIR) of 0.11 for 2025.
Q4 Standalone Results
For the fourth quarter, reported revenue stood at ₹43.01 billion rupees, a 4 percent sequential decline due to seasonal product categories. Adjusted EBITDA for the quarter was ₹5.76 billion rupees, down 11 percent from Q3 2025, though results showed signs of greater stability compared to the previous year.
Full Year 2025 Consolidated Results
Consolidated net revenue for the full year 2025 reached ₹167.91 billion Rupees, an increase of ₹15.24 billion compared to 2024. Consolidated adjusted EBITDA was ₹22.75 billion Rupees, reflecting a substantial increase of ₹7.77 billion year-over-year.
Segmental Performance Review
The Carbon Segment
The Carbon segment revenue in Q4 2025 was ₹33.05 billion Rupees, up 26.5 percent, driven mainly by higher volumes in the Calcination business. Adjusted EBITDA saw a significant jump of ₹1.66 billion (or 45.2 percent) year-over-year, fueled by increased volumes and better price realisations in Calcination following the re-setting of CPC prices, coupled with favorable currency movements.
Management noted that the Distillation business faced headwinds from commodity price volatility and Euro-to-Dollar strength, leading to a 6 percent decline in volumes and a 4 percent revenue drop quarter-over-quarter. Conversely, the Calcination business benefited from improving global demand, though pricing moderated slightly.
A critical factor remains raw material sourcing, as competition from the Battery Anode Material (BAM) sector continues to place structural pressure on the GPC raw material market.
Advanced Materials Segment
Performance in the Advanced Materials segment was impacted by the inherent seasonality typical of Q4. Revenue was ₹7.29 billion Rupees, a 5.5 percent decrease compared to Q4 2024, primarily due to lower volumes in Engineered Products and Chemical Intermediates. Adjusted EBITDA remained flat year-over-year.
However, the segment showed strategic progress, highlighting entry into the North American Meso-phase Carbon Micro Bead (MCMB) market. RAIN is actively involved in three key R&D initiatives, including SiB-D.E. (sodium-ion battery materials), a partnership with the Ontario Vehicle Innovation Network (OVIN), and USE-G, which focuses on purification technologies independent of Chinese supply chains.
Cement Segment
The Cement segment experienced an 8.8 percent revenue decrease in Q4 2025 due to lower volumes from extended monsoons in South India. Despite this, Adjusted EBITDA moved to a positive ₹70 million Rupees compared to negative ₹120 million Rupees in Q4 2024, thanks to marginal improvements in realisations and lower operational costs.
The planned brownfield expansion in Telangana has been temporarily slowed due to subdued market conditions, pending further evaluation of cost optimization strategies.
Balance Sheet and Cash Flow
RAIN concluded the year with a strong liquidity position of $340 million dollars. Gross debt was $1,019 million USD, resulting in a net debt of $837 million USD. The net debt to LTM EBITDA ratio improved to 3.21x.
Capital expenditures for 2025 totaled $53 million USD, concentrated on maintenance and turnarounds. Financing activities showed an outflow of ₹10.25 billion Rupees, covering debt repayment and interest expenses.
Outlook and Strategic Focus
Gerard Sweeney noted that the global aluminium industry shows strong momentum, with LME prices trending upward supported by robust demand and tight supply. RAIN’s strategic priorities remain focused on enhancing efficiency, strengthening competitiveness, and building resilience.
Looking ahead, Jagan Reddy Nellore concluded that the focus remains on restoring normalized earnings through cost optimization, operational discipline, and strengthening the balance sheet by reducing interest costs in the near term.
Source: BSE
