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Rain Industries Ltd
NSE: RAIN BSE: 500339 INE855B01025 Commodities Energy 🔎 Screen
Microcap 250
₹6,418 Cr
Market Cap
21.0
P/E
PEG
8.3%
ROCE
0.6%
ROE
0.19
D/E
13.8%
OPM
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
Shareholding
About

Rain Industries Limited (RAIN) is a leading vertically integrated producer of carbon, cement and Advanced materials products. Headquartered in India, RAIN has manufacturing facilities in eight countries across three continents.

✓ Strengths 2
  • Stock is trading at 0.89 times its book value
  • Company has been maintaining a healthy dividend payout of 23.2%
! Concerns 3
  • Company has low interest coverage ratio.
  • The company has delivered a poor sales growth of 10.1% over past five years.
  • Company has a low return on equity of -6.68% over last 3 years.
Key Ratios Snapshot
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📈 Growth Pattern
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Strong beat — revenue up 20% YoY and adjusted EBITDA surged 65%, driven by margin expansion and volume recovery in carbon and advanced materials, though cement segment lagged. quarter Investor Presentation One-Pager? Mar 2026
Revenue
₹4,521 Cr
+20% YoY (₹3,768 Cr in Q1 2025)
EBITDA Margin
15.8%
+430 bps YoY (11.5% in Q1 2025)
PAT
₹124.5 Cr
Adjusted PAT vs ₹(97.8) Cr loss in Q1 2025; swing to profit
Net Debt / EBITDA
2.85x
Improved from 3.21x in Dec 2025
What Went Right
  • Carbon revenue grew 24% YoY to ₹4,997 Cr (₹3,305 Cr in Q1 2025) driven by volume recovery and price increases.
  • Adjusted EBITDA nearly doubled YoY to ₹714.9 Cr from ₹434.2 Cr, with sharp margin expansion.
  • Advanced Materials EBITDA jumped 261% YoY to ₹65 Cr on higher volumes and cost savings.
  • Operating cash flow improved massively to ₹527.5 Cr from ₹(765.5) Cr in Q1 2025 due to better profitability.
  • Net debt reduced by US$12 Mn sequentially; no major debt maturities until Oct 2028.
What to Watch
  • Cement revenue fell 5% YoY to ₹274 Cr (₹288 Cr) due to lower volumes (633k MT vs 698k MT) amid fierce competition.
  • Cement EBITDA dropped to ₹5 Cr from ₹6 Cr YoY, hurt by lower volumes and higher operating costs.
  • Input costs remain elevated: Fuel oil and natural gas prices hit 12-quarter highs in Mar 2026, pressuring margins.
  • Adjusted PAT of ₹124.5 Cr is still low relative to revenue base, indicating high fixed cost burden and interest outlay (~₹238 Cr finance cost).
  • Foreign exchange gains/losses on inter-company debt were volatile (₹4.6 Cr gain this quarter) adding noise.
Investor Lens
The quarter marks a clear recovery in Rain's core carbon and advanced materials segments, supported by favourable aluminium market dynamics (LME prices holding, supply disruptions) and internal cost actions. Cement remains a drag with structural competition and margin erosion. The 430 bps EBITDA margin expansion and operating cash flow turnaround are encouraging, but interest cost and raw material inflation (fuel oil, natural gas) are headwinds to watch. Net debt/EBITDA improved to 2.85x from 3.21x, and management is exploring debt optimisation—but no specific refinancing target is set. The thesis is intact if volume and price momentum continue, but cement segment performance and input cost trajectory require close monitoring in Q2 2026.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Revenue up 20% YoY, PAT surges 237% to ₹158 Cr
Revenue
Revenue grew 20% YoY to ₹4,521 Cr and rose 5.1% sequentially, driven by higher sales volumes or pricing.
Profitability
Net profit turned around to ₹158 Cr from a loss of ₹119 Cr last year, with EPS of ₹3.61 vs -₹4.09 YoY. PAT jumped 315.8% QoQ.
Margins
Operating margin improved to 15% from 10% a year ago, reflecting better cost control and operating leverage. QoQ margin rose from 12%.
Cash Flow
No cash flow data provided. Unable to assess CFO quality against reported PAT.
Balance Sheet
Debt-to-equity stands at 1.32 with interest cost of ₹238 Cr. ROCE is 8.26% but ROE is a thin 0.6%, indicating high leverage.
Key Risks
Elevated debt level (D/E 1.32) and interest burden of ₹238 Cr pressure net margins. Low ROE (0.6%) and high PE (104x) suggest overvaluation risk.
Outlook
Sustained revenue growth and margin improvement are positive, but high leverage and interest costs remain concerns. Continued focus on debt reduction will be key.
Generated by AI · Mar 2026 results · Not investment advice
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Revenue by Segment

Segment Q3FY26 Q4FY26 Trend
(a) Carbon
3,528
EBIT 620
(b) Advanced Materials
975
EBIT 64
(c) Cement
274
EBIT -1
Advanced Materials
839
EBIT 23
Carbon
3,486
EBIT 481
Cement
241
EBIT 0
Total 4,565 4,776

Source: NSE Integrated Filing XBRL (Reg. 33 Ind AS). Values in ₹ Crore.

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