Rathi Steel & Power Ltd

BSE: RATHIST · Iron & Steel Products

52W Range₹14 ₹29

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Snapshot

Unlock Rathi Steel & Power Ltd's vital signs

Growth · Profitability · Valuation · Strength · Conviction

Company Overview

Business

Rathi Steel and Power Limited is an Indian manufacturer specialising in TMT bars, wire rods, and steel billets for the construction and infrastructure sectors. The company operates integrated manufacturing facilities in Uttar Pradesh and Odisha, supported by captive power generation.

Business Model

The company generates revenue through the production and sale of secondary steel products, leveraging its integrated plants to control costs. It serves the construction industry by supplying high-strength reinforcement bars under the established Rathi brand.

Management Commentary

Management remains focused on optimising capacity utilisation and maintaining stringent product quality standards within the competitive secondary steel market.

Growth Outlook

Growth is driven by sustained demand in the Indian infrastructure and construction sectors. The company continues to focus on operational efficiency and the integration of its power generation assets to support manufacturing output.

Key Risks

  • Raw Material Price Volatility. Fluctuations in the cost of iron ore, coal, and scrap metal can significantly impact profit margins.
  • Cyclicality of Construction Sector. The company's performance is highly sensitive to the cyclical nature of the Indian infrastructure and real estate industries.
  • Regulatory and Environmental Compliance. Stringent environmental regulations regarding steel manufacturing emissions and energy usage pose ongoing operational risks.
  • Intense Market Competition. The secondary steel sector is highly fragmented, leading to intense price competition from both organised and unorganised players.

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Key Metrics

REVENUE

₹0 Cr

TTM · standalone

-100.0%YoY

NET PROFIT

₹13 Cr

TTM · standalone

-59.0%YoY

EPS

₹1.49

TTM · standalone

-59.6%YoY

RETURN ON EQUITY

9.3%

TTM · standalone

-268.1 ppYoY

RETURN ON CAPITAL EMPLOYED

15.5%

TTM · standalone

-67.2 ppYoY

P/E

16.0x

Q4 FY26 · standalone

16.0 vs 5.9x5Y avg

EV/EBITDA

4.8x

Q4 FY26 · standalone

4.8 vs 9.4x5Y avg

EBITDA MARGIN

24.2%

TTM · standalone

+19.9 ppYoY

DEBT TO EQUITY

0.3%

Q4 FY26 · standalone

+0.0 ppYoY

Peers · Iron & Steel Products

CompanyMkt CapP/EEV/EBITDARev Gr YoYEBITDA MgnROEROCE1Y Return
Rathi Steel & Power LtdRATHIST
₹217 Cr16.897.44-100.0%24.2%9.3%15.5%+2.2%
Panchmahal SteelPANCHMAHQ
₹580 Cr99.7231.765.0%3.9%7.2%+13.9%
Modern MalleableMODMA
₹569 Cr29.4021.16189.2%18.2%11.8%15.1%
Azad India Mobility LimitedAZADIND
₹509 Cr3.3%-1.4%-1.3%-30.1%
SurajSURAJLTD
₹385 Cr46.4419.13-15.2%12.0%6.1%12.6%-32.1%
Shah MetacorpSHAH
₹369 Cr26.7125.4348.8%10.1%5.6%5.4%+12.3%

As of Q4 FY26

Financials