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1. At a Glance
Rain Industries turns other industries’ byproducts into carbon products, and also makes advanced materials and cement. Revenue for the three months to June 2026 was ₹5,167 crore, up 17.4% on a year earlier. Operating profit was ₹964 crore, against ₹629 crore in the same quarter last year. Net profit was ₹296 crore, against ₹61 crore a year earlier. Operating margin printed at 19%, the highest in the thirteen quarters visible on the record. That margin has swung between minus 15% and 15% in recent years, a range with more travel in it than most dance routines.
The board declared an interim dividend of ₹1 for each share. Management confirmed a new coal tar pitch distillation unit in India, with the first phase planned to begin operations in early 2028. The CFO said working capital rose during the quarter because the company built safety stocks for its Indian calciners amid Middle East disruptions. A calciner is the kiln that turns raw petroleum coke into the calcined product Rain sells. So a business built on other people’s leftovers answered geopolitics by stockpiling leftovers faster. Utilisation in the Carbon segment held at 69%, and management plans to restart a kiln in the United States after a year-long outage. Total liquidity stood at 313 million US dollars. Net debt was 2.77 times operating profit before depreciation and interest, against 3.21 at December 2025. The auditor issued an unmodified opinion on the results, meaning no objections were raised.
2. Introduction
Rain Industries is headquartered in Hyderabad and produces carbon products, advanced materials and cement. It runs manufacturing facilities in eight countries across three continents. Sixteen plants sit in the United States, Canada, Germany and Belgium, with the rest in Russia, Poland and India. Somewhere in that spread it is always a working hour, and somewhere a kiln is always running.
The recent past has been eventful in the way a weather report is eventful. Calendar 2023 brought a net loss of ₹938 crore, and calendar 2024 a net loss of ₹564 crore. Calendar 2025 returned a net profit of ₹43 crore. Management, answering questions after the results, attributed the difficult decade to four things. It named borrowing taken on for the RUETGERS acquisition, challenging market cycles, Indian restrictions on imports of green petroleum coke, and high financing costs. Green petroleum coke is the raw refinery residue that Rain bakes into its calcined product. Management also stated that the industry has now largely adapted to the revised rules. It said import quotas for green petroleum coke were raised from 1.40 to 1.90 million tonnes. It added that permissions to import into special economic zones have restored blending operations, which mix coke grades to a required specification.
Recent announcements cover three items. The first is a cement expansion at Suryapet costing ₹757 crore, built on the existing site rather than a new one. Capacity there goes from 1.5 million tonnes a year to 3.8 million, with commissioning expected in the second half of calendar 2027. The second is a completed project with Green Graphite Technologies on coated spherical purified graphite, a material used in lithium-ion batteries. The third is the August 2026 board meeting, which approved the results, the dividend, and a postal ballot to re-appoint Mr Robert Thomas Tonti as Independent Director for five years.
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3. Business Model: WTF Do They Even Do?
Rain’s core business is dignified recycling at industrial scale. Oil refineries and steel plants leave behind byproducts nobody frames on a wall, namely green petroleum coke and coal tar. Rain converts these into calcined petroleum coke and coal tar pitch. Four industries cannot function without them: aluminium, graphite electrodes, carbon black and titanium dioxide. The company is the world’s largest producer of coal tar pitch and the second-largest maker of calcined petroleum coke. That is a global podium built entirely on other people’s leftovers.
The Carbon segment is about 75% of the business. It runs 2.4 million tonnes a year of calcination capacity and 1.3 million tonnes of coal tar distillation. Per management, carbon accounts for roughly 15% of the cost of producing aluminium. Management also says pricing is set by regional supply and demand for carbon products, rather than by the aluminium price on the London Metal Exchange. The ingredient, on that account, has an economy of its own, separate from the dish.
