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Rain Industries Ltd

| Integrated Annual Report 2025-26

Report Source

⬤14th Apr 26

Summary : Rain Industries achieved significant turnaround in 2025, driven by strong operational performance and strategic positioning in key markets, despite global macroeconomic challenges.

Annual Report Analysis & Insights

Financial Disclosures

  1. Consolidated Cost of materials consumed: ₹95,408.30 Million.
  2. Consolidated Employee benefits expense: ₹13,185.92 Million.
  3. Consolidated Finance costs: ₹9,216.47 Million.
  4. Consolidated Depreciation and amortisation: ₹9,218.32 Million.
  5. Consolidated Other expenses: ₹37,865.12 Million.
  6. Total Trade receivables: ₹20,526.86 Million (2025).
  7. Undisputed Trade Receivables considered good: ₹20,526.86 Million.
  8. Credit impaired receivables: ₹317.33 Million.
  9. Consolidated Revenue: ₹169,458.25 Million (2025).
  10. Carbon segment: ₹126,174.78 Million (74% of revenue).
  11. Advanced Materials: ₹31,978.49 Million (19% of revenue).
  12. Cement segment: ₹11,304.98 Million (7% of revenue).
  13. Europe: 30% of total revenue.
  14. APAC: 36% of total revenue.
  15. North America: 23% of total revenue.
  16. Consolidated Net cash generated from operating activities: ₹8,972.43 Million.
  17. Consolidated Net cash used in investing activities: ₹(3,945.64) Million.
  18. Consolidated Net cash used in financing activities: ₹(10,254.78) Million.
  19. Claims not acknowledged as debt: ₹2,582.77 Million (2025).
  20. Capital commitments remaining to be executed: ₹825.17 Million (2025).
  21. Company contesting demands, believes position will be upheld.
  22. No expense accrued for these demands.
  23. Consolidated Total Assets: ₹207,597.67 Million.
  24. Consolidated Total Equity: ₹76,907.50 Million.
  25. Consolidated Total Liabilities: ₹130,690.17 Million.
  26. All transactions on arm's length basis.
  27. No materially significant related party transactions.
  28. Approved by Audit Committee and Board.
  29. Details provided in financial statement notes.
  30. Standalone Revenue: ₹1,306.21 Million.
  31. Standalone Net Profit: ₹94.46 Million.
  32. Consolidated Revenue: ₹169,458.25 Million.
  33. Consolidated Net Profit: ₹425.24 Million.

Corporate Overview

  1. 16 production facilities across Asia, Europe, North America.
  2. Europe: 30% of revenue.
  3. APAC: 36% of revenue.
  4. Others: 11% of revenue.
  5. North America: 23% of revenue.
  6. Volatility in raw material availability and operating norms.
  7. Tight supply of GPC and declining coal-tar production.
  8. Evolving regulatory requirements, especially emissions.
  9. Persistent pricing pressure in Advanced Materials.
  10. Extended monsoon and cyclical softness in Cement.
  11. Elevated energy prices and labor costs.
  12. Increasing competition across segments.
  13. Geopolitical developments and targeted sanctions.
  14. Volatility in raw material availability and operating norms.
  15. Tight supply of GPC due to battery anode demand.
  16. Declining coal-tar production prompted alternative feedstocks.
  17. Dependency on single supplier is being reduced.
  18. Tight coal tar supply and energy cost pressures in Europe.
  19. Pricing pressure in Advanced Materials markets.
  20. Cement market sensitive to monsoon conditions and cyclicality.
  21. Vertically integrated producer of CPC, CTP, advanced materials.
  22. Operates across Carbon, Advanced Materials, Cement segments.
  23. Develops products for industrial production, high-tech applications.
  24. Leverages integrated operations, technical expertise, disciplined execution.
  25. Diversified portfolio delivered resilient performance.
  26. bullish
  27. Carbon: Aluminium, graphite electrode, carbon black, titanium dioxide.
  28. Advanced Materials: Specialty chemicals, coatings, energy storage, adhesives.
  29. Cement: Construction industry.
  30. Provides tailored solutions and technical support.
  31. Carbon: 74% of consolidated revenue.
  32. Advanced Materials: 19% of consolidated revenue.
  33. Cement: 7% of consolidated revenue.
  34. Carbon: 2.4 MnTPA Calcined petroleum coke.
  35. Carbon: 1.3 MnTPA Coal tar distillation.
  36. Advanced Materials: 0.5 MnTPA Advanced Materials.
  37. Cement: 4.0 MnTPA Cement.
  38. Indian Carbon plants operated at 90% utilisation.
  39. Cement segment operated at 64% utilisation.
  40. Scaling capacity through cost and energy discipline.
  41. Planning brownfield expansion at Suryapet Cement site.
  42. Expand Cement production capacity from 1.5 to 3.8 MnTPA.
  43. Includes 7 MW waste heat recovery and green power use.
  44. Expanding onsite solar power capacity by 2.10 MW.
  45. Deferring new cement line groundbreaking until market conditions improve.
  46. Strategic investments in safety, productivity, efficiency.
  47. Advancing next-generation energy storage materials initiatives.
  48. Preparing for CTP production in India, then higher-value carbon products.

Risk Factors

  1. Raw material price volatility.
  2. Global geopolitical tensions.
  3. Inflationary pressures persist.
  4. Regulatory compliance burden.

Key Drivers

  1. Recovery from net loss.
  2. Strong aluminium demand.
  3. Cement capacity expansion.
  4. Next-gen energy materials.

Auditor’s Report

  1. Standalone: True and fair view.
  2. Consolidated: True and fair view.
  3. Standalone: Impairment assessment of non-current investments in subsidiaries.
  4. Consolidated: Impairment assessment of Goodwill.
  5. Standalone: Uncertainties regarding applicable regulations and sanctions.
  6. Consolidated: Uncertainties regarding applicable regulations and sanctions.

Board Commentary

  1. No change in Board of Directors during 2025.
  2. Mr. N. Sujith Kumar Reddy retires by rotation, offers re-appointment.
  3. Interim dividend of ₹1 per equity share declared.
  4. No further dividend recommended for 2025.
  5. Dividend payout aligns with Company's Dividend Distribution Policy.
  6. Policy available on Company's website.
  7. Formulated a comprehensive Risk Management Policy.
  8. Policy outlines different risks and mitigating measures.
  9. Adequate internal control systems to combat risks.
  10. Risk management procedures reviewed quarterly by Board.
  11. No significant material orders impacting going concern status.
  12. No proceedings pending under Insolvency and Bankruptcy Code.
  13. Statutory Auditors reported no qualifications or adverse remarks.
  14. Secretarial Auditors reported no qualifications or adverse remarks.
  15. Deferred proposed brownfield Cement expansion.
  16. Initiated planning for Suryapet Cement capacity expansion.
  17. Proposed expansion includes waste heat recovery and green power.
  18. Exercised prudent cost management by deferring new line groundbreaking.
  19. Strategic investments in safety, productivity, efficiency.
  20. Growth capital deployed selectively.

Corporate Governance

  1. Code of Business Conduct & Ethics circulated to all employees.
  2. Ethics awareness campaigns reinforce organizational values.
  3. Ombudsman oversees investigations.
  4. Whistle Blower Policy implemented.
  5. Policy on Prevention of Sexual Harassment.
  6. Code of Conduct for Prevention of Insider Trading.
  7. Board comprises seven Directors, six non-executive.
  8. Independent and Non-Executive Chairman.
  9. Four Independent Directors on Board.
  10. Independent Directors form over 57% of Board strength.
  11. All Independent Directors meet independence criteria.
  12. Audit Committee: 4 Independent Directors.
  13. Nomination and Remuneration Committee: 4 Independent Directors.
  14. Risk Management Committee: 3 Directors (1 Independent).
  15. Stakeholders' Relationship Committee: 4 Directors (1 Independent).
  16. Corporate Social Responsibility Committee: 3 Directors (1 Independent).
  17. Share Transfer Committee: 3 Directors.
  18. Auditors reported no qualifications or adverse remarks.
  19. Secretarial Audit Report had no adverse remarks.
  20. No material fraud noticed or reported during year.
  21. No whistle blower complaints received.
  22. No significant material orders impacting going concern.

Management Discussion & Analysis

Future Strategy

  1. Strengthen current business while shaping future capabilities.
  2. Broaden and de-risk sourcing and processing base.
  3. Embed compliance and selectively scale capacity.
  4. Focus on specialized materials for competitive advantage.
  5. Prioritize balance sheet flexibility before accelerating growth.
  6. Drive innovation, strengthen core, build resilient enterprise.
  7. Focus on margin protection, cost efficiency, cash generation.
  8. Prudent capital allocation and earnings-led deleveraging.

Industry Overview

  1. Aluminium industry remained a firm anchor for core business.
  2. Global aluminium production continued to expand.
  3. Strong aluminium demand prompted smelter capacity expansions.
  4. Long-term cement outlook remains positive due to infrastructure.
  5. Carbon-based input demand reflected cyclical adjustments.

Macroeconomic Outlook

  1. Global economy in 2025 evolved amid volatile commodity cycles.
  2. Persistent inflationary pressures and supply chain recalibrations.
  3. Manufacturing activity remained subdued early in the year.
  4. Global recovery is likely to stay uneven.

Operational Focus Areas

  1. Broadening raw material base for supply continuity.
  2. Embedding regulatory readiness into core plant operations.
  3. Strengthening competitive position through process innovation.
  4. Scaling capacity through cost and energy discipline.
  5. Building an organization-wide safety culture.
  6. Achieving financial flexibility for future growth.
  7. Prioritizing process upgrades, logistics optimization, alternative raw materials.

Performance Drivers

  1. Diversified portfolio delivered resilient performance.
  2. Significant turnaround in 2025, returning to net profit.
  3. Materially improved EBITDA from cost control and throughput.
  4. Disciplined execution across operations.
  5. Stable feedstock and enhanced spread management in Carbon.
  6. Growth in engineered products sustained Advanced Materials momentum.
  7. Cement maintained volumes with regional demand and cost control.
  8. Strengthened working capital discipline through inventory optimization.

Risk Control Measures

  1. Broad global footprint and agile supply chain.
  2. Stringent compliance frameworks.
  3. Dynamic procurement strategies and sourcing diversification.
  4. Enhanced multi-modal transport planning.
  5. Deepened relationships with alternate suppliers.
  6. Proactive monitoring of regulatory changes.
  7. Scenario planning and impact assessment.
  8. Strengthened cybersecurity and insurance coverage.
  9. Increased training for occupational health and safety.
  10. Strengthening monitoring and inspection practices for process safety.
  11. Regular statutory compliance monitoring via SAP.

Critical Risks

  1. Market and operational risks: Raw material and supply chain volatility.
  2. Supply chain and logistics risks: Geopolitical developments.
  3. Environmental, social, governance risks: Evolving regulations.
  4. Geopolitical and macroeconomic uncertainties: Global tensions, currency fluctuations.
  5. Inability to sell higher volumes.
  6. Fluctuation in exchange and interest rates.
  7. Environment protection compliance.
  8. Contamination of GPC and CPC during transit/storage.
  9. Decarbonisation policies and threats.
  10. Talent management and retention.
  11. Information technology and cybersecurity threats.
  12. Occupational health and safety incidents.
  13. Process safety and operational disruptions.
  14. Regulatory compliance and penalties.