1. Opening Hook

If steel cycles had emotions, Q2 FY26 would be called “controlled patience.” Rathi Steel didn’t melt down, didn’t shine either—just quietly rolled steel while imports flooded the market and prices sulked. Management sounded calm, almost monk-like, discussing 4% EBITDA margins as if that’s a lifestyle choice, not a compulsion.

The big story wasn’t numbers exploding—it was discipline. Old plants, cautious capex, gradual TMT ramp-up, and a strong belief that “sweating assets” beats flashy expansions. Add a dash of green steel optimism and a sprinkle of NCR pollution drama, and you’ve got a quarter that says: we’ll survive this cycle too.

Stick around. The steel business rarely thrills, but it always reveals who’s built to last.

2. At a Glance

• Revenue ₹156.4 cr – Growth exists, but it’s wearing steel-toed boots.
• EBITDA ₹6.37 cr (4%) – Margins still allergic to excitement.
• H1 Revenue ₹311 cr – Stability > surprises.
• Capacity utilization improving – Old mills slowly waking up.
• Debt cost ~18% – Banks still remember the Odisha chapter.
• 100% domestic sales – No export heroics, just local battles.

3. Management’s Key Commentary

“We operate 85,000 tons of melting and 2 lakh tons of rolling capacity.”
(Translation: Assets are there, patience required.)

“Margins were impacted by pricing pressure and rising imports.”
(Translation: China didn’t call, but sent steel anyway.)

“TMT mill recommissioned in April.”
(Translation: Idle assets finally got a job.)

“We are focused on value-added stainless steel products.”
(Translation: Commodities hurt less when you add features.)

“Scrap availability is comfortable in NCR.”
(Translation: Recycling saves margins—and carbon points.)

“Royalty on the Rathi brand is negligible.”
(Translation: Branding costs less than chai.) 😏

“We want to sweat existing assets before expansion.”
(Translation: Capex discipline over ego.)

4. Numbers Decoded

Nothing flashy, but nothing broken either.

5. Analyst Questions

• Why margins stuck at 4%?
  Excess supply, imports, and partial integration pain.
• Scrap or ferro alloy issues?