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1. At a Glance
Rain Industries closed the June 2026 quarter with revenue of ₹5,167 crore, up 17.4% year on year, and operating profit of ₹964 crore against ₹629 crore in the same quarter last year. Net profit came in at ₹296 crore versus ₹61 crore a year ago — the sort of comparison where the base year quietly asks not to be mentioned. Operating margin printed at 19%, the highest in the thirteen quarters visible on the record, for a company whose margin has spent recent years doing interpretive dance between -15% and 15%.
The board declared an interim dividend of ₹1 per share, and management confirmed the first phase of a new coal tar pitch distillation unit in India is planned to commence operations in early 2028. The CFO also disclosed that working capital rose during the quarter because the company deliberately built safety stocks for its Indian calciners amid Middle East disruptions — a company that turns other industries’ leftovers into products responding to geopolitics by hoarding leftovers faster. Utilisation in the Carbon segment held at 69%, and management plans to restart a kiln in the U.S. after a year-long outage. Total liquidity stood at US$313 million, and net debt to EBITDA improved to 2.77 from 3.21 at December 2025. The auditor issued an unmodified opinion on the results.
2. Introduction
Rain Industries is a Hyderabad-headquartered producer of carbon products, advanced materials and cement, with manufacturing facilities in eight countries across three continents. The company operates sixteen plants spread across the USA, Canada, Germany, Belgium, Russia, Poland and India — a footprint that means somewhere in the Rain empire, it is always a working hour and someone is always calcining something.
The recent past has been eventful in the way a weather report is eventful. Calendar 2023 and 2024 produced net losses of ₹938 crore and ₹564 crore respectively, before CY25 returned a net profit of ₹43 crore. Management, in its Q&A, attributed the difficult decade to acquisition-related leverage from the RÜTGERS deal, challenging market cycles, Indian GPC import restrictions, and elevated financing costs — and stated that the industry has now largely adapted to the revised regulatory framework, with GPC import quotas raised from 1.40 to 1.90 million tonnes and SEZ import permissions restoring blending operations.
Recent announcements include a ₹757 crore brownfield cement expansion at Suryapet (capacity from 1.5 to 3.8 MTPA, expected commissioning H2 CY27), a completed project with Green Graphite Technologies on coated spherical purified graphite for lithium-ion batteries, and the August 2026 board meeting that approved results, the dividend, and a postal ballot for re-appointing 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 produce byproducts nobody frames on a wall — green petroleum coke and coal tar — and Rain converts them into Calcined Petroleum Coke (CPC) and Coal Tar Pitch (CTP), which the aluminium, graphite electrode, carbon black and titanium dioxide industries cannot function without. It is the world’s largest producer of CTP and second-largest manufacturer of CPC, a global podium built entirely on other people’s leftovers.
The Carbon segment is about 75% of the business, running 2.4 million tonnes per annum of calcination capacity and 1.3 MTPA of coal tar distillation. Per management, carbon represents roughly 15% of aluminium’s production cost, and pricing is driven by regional supply-demand for carbon products rather than the LME ticker — the ingredient has its own economy, separate from the dish.
Advanced Materials (about 19%) transforms carbon and petrochemicals into engineered products, chemical intermediates and resins for speciality chemicals, coatings, construction and automotive uses. The battery materials portfolio includes PETRORES specialty carbon coatings for anode materials and the distribution of mesophase carbon micro-beads — words that sound invented until you learn they go into the battery in your device.
Cement (about 6%) is the domestic sibling: two integrated plants in Telangana and Andhra Pradesh selling OPC and PPC under the Priya Cement brand to South India, with 4 MTPA capacity. So the same company ships coal tar pitch to European
