Rathi Steel and Power Ltd has reported annual revenue of Rs 7,167 million for the fiscal year 2026, marking a significant 41.8 per cent rise from Rs 5,054.3 million in FY25. The strong performance highlights steady demand for its stainless steel products and TMT bars, even as higher fuel prices and global trade challenges continue to impact the industry.

Solid performance despite rising costs

The company recorded revenue of Rs 2,448 million in the fourth quarter alone, demonstrating resilience in a challenging market. The management attributed the growth to consistent demand for stainless steel long products and TMT bars, alongside operational efficiency. The figures reported are provisional and will be audited, the company said.

One key factor driving efficiency is Rathi Steel’s direct charging capability in stainless steel wire rod production. This allows hot stainless steel billets to be fed straight into the rolling mill, reducing the need to reheat the metal and lowering fuel consumption. With energy prices rising globally, this process helps the company manage input costs effectively.

While stainless steel operations benefit from this technology, the TMT business remains more exposed to fuel cost fluctuations. The company is taking measures to mitigate these effects, showing the advantage of a balanced portfolio that includes both stainless steel and TMT products, giving flexibility to adapt to market changes.

Operational efficiency boosts output

Improved capacity utilisation in the rolling division has allowed the company to increase production throughput. This operational improvement has contributed to better productivity and higher revenue realisations. Management pointed out that focused execution across manufacturing and sales channels has helped the company reach a wider customer base while optimising its product mix and pricing strategy.

Operational efficiencies, along with improved production methods, have been credited for the significant year-on-year revenue growth. By scaling operations while maintaining product quality, Rathi Steel has been able to navigate a market affected by rising fuel costs and broader macroeconomic pressures.

Cautious optimism for the future

The company’s promoters expressed confidence in the long-term fundamentals of the Indian economy but emphasised a careful approach due to geopolitical uncertainties. Looking ahead, Rathi Steel intends to focus on efficiency, quality, and scalable execution as the foundation for future growth, without providing specific financial guidance.

Despite external challenges, the company’s emphasis on stainless steel innovation and operational flexibility positions it well for continued growth in the coming years.