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Rain Industries Ltd

| Quarterly Financial Results Q3 FY 2025-26

BULLISH SENTIMENT

Report Source

⬤27th Feb 26

Summary : Rain Industries Limited reported a significant consolidated net profit turnaround and revenue growth for FY2025, despite facing geopolitical and regulatory challenges.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Standalone Total expenses: FY2025: INR 1,346.88 million (FY2024: INR 1,615.81 million).
  2. Consolidated Total expenses: FY2025: INR 166,520.56 million (FY2024: INR 158,480.27 million).
  3. Consolidated Cost of materials consumed: FY2025: INR 95,408.30 million (FY2024: INR 86,462.11 million).
  4. Consolidated Employee benefits expense: FY2025: INR 13,185.92 million (FY2024: INR 14,091.16 million).
  5. Consolidated Finance costs: FY2025: INR 9,216.47 million (FY2024: INR 9,405.86 million).
  6. Consolidated Impairment loss: FY2025: INR 730.52 million (FY2024: INR 0 million).
  7. Standalone Revenue from operations: FY2025: INR 1,306.21 million (FY2024: INR 1,414.62 million).
  8. Consolidated Revenue from operations: FY2025: INR 169,458.25 million (FY2024: INR 153,743.91 million).
  9. Consolidated Revenue by Segment: Carbon (INR 132,454.24 million), Advanced Materials (INR 35,927.41 million), Cement (INR 11,305.12 million) for FY2025.
  10. Standalone Net cash generated from operating activities: FY2025: INR 212.06 million (FY2024: INR (47.50) million).
  11. Consolidated Net cash generated from operating activities: FY2025: INR 8,972.43 million (FY2024: INR 19,432.16 million).
  12. Consolidated Net cash used in investing activities: FY2025: INR (3,945.64) million (FY2024: INR (2,120.86) million).
  13. Consolidated Net cash used in financing activities: FY2025: INR (10,254.78) million (FY2024: INR (17,705.93) million).
  14. Consolidated Cash and cash equivalents at year end: FY2025: INR 9,257.02 million (FY2024: INR 13,211.86 million).
  15. Uncertainties with respect to applicable regulations and sanctions.
  16. Standalone Total assets: Dec 31, 2025: INR 10,913.66 million (Dec 31, 2024: INR 11,147.26 million).
  17. Consolidated Total assets: Dec 31, 2025: INR 207,597.67 million (Dec 31, 2024: INR 189,368.71 million).
  18. Consolidated Total equity: Dec 31, 2025: INR 76,907.50 million (Dec 31, 2024: INR 68,250.06 million).
  19. Consolidated Non-current borrowings: Dec 31, 2025: INR 72,557.51 million (Dec 31, 2024: INR 64,842.09 million).
  20. Potential recoverability issues for inter-company loans and dividend repatriation due to geopolitical conflict.
  21. Both standalone and consolidated financial results are presented and audited.
  22. Segment information is presented only on a consolidated basis.

Corporate Overview

  1. India (Hyderabad)
  2. Canada
  3. Germany
  4. Poland
  5. Cyprus
  6. Russia
  7. France
  8. Belgium
  9. Shanghai (China)
  10. FZCO
  11. Geopolitical conflict causing volatility in commodity prices and supply chain disruptions.
  12. Regulatory compliance difficulties for step-down subsidiary (Severtar Holding Limited, Cyprus).
  13. Expired provisional certificate for SHL re-domiciliation to Kaliningrad SAR.
  14. Impairment charge recognized on projects under Capital work in progress.
  15. Financial implications from new Indian Labour Codes increasing employee liabilities.
  16. Vulnerability to geopolitical conflicts (Russia-Ukraine) impacting commodity prices and supply chains.
  17. Reliance on regulatory compliance for international subsidiaries.
  18. Holding company with diversified operations through numerous subsidiaries.
  19. Engaged in Carbon, Advanced Materials, and Cement segments.
  20. Factual and compliant, reporting financial results and regulatory adherence.
  21. Acknowledges and monitors significant geopolitical and regulatory challenges.
  22. Carbon
  23. Advanced Materials
  24. Cement
  25. Continues to evaluate the status of projects under Capital work in progress.

Risk Factors

  1. Geopolitical conflicts cause market volatility.
  2. Subsidiary faces regulatory compliance difficulties.
  3. New Labour Codes increase employee liabilities.
  4. Impairment charges on capital projects.

Key Drivers

  1. Consolidated net profit turned positive.
  2. Revenue from operations showed growth.
  3. Total assets base expanded significantly.
  4. Management actively monitors regulatory compliance.

Auditor’s Report

  1. Unmodified opinion (Standalone and Consolidated).
  2. Uncertainties regarding applicable regulations and sanctions described in Note 5 of standalone financial results.
  3. Uncertainties regarding applicable regulations and sanctions described in Note 3 of consolidated financial results.

Board Commentary

  1. Uncertainties with respect to applicable regulations including sanctions (Note 5 Standalone, Note 3 Consolidated).
  2. Difficulties in fulfilling regulatory requirements for Severtar Holding Limited (Cyprus) including statutory filings, audits, and sanctions.
  3. Provisional certificate for re-domiciliation of Severtar Holding ILLC (Kaliningrad) expired.
  4. Group continues to evaluate the status of projects which are under Capital work in progress.

Corporate Governance

  1. Auditors complied with ethical requirements and Code of Ethics issued by ICAI.
  2. Auditors communicate compliance with ethical requirements regarding independence to those charged with governance.
  3. Audit Committee reviewed and recommended the financial results to the Board of Directors.

Management Discussion & Analysis

Future Strategy

  1. Closely monitoring compliance with applicable regulations, including sanctions.
  2. Evaluating options to regularize subsidiary's regulatory status in Cyprus and Kaliningrad.

Macroeconomic Outlook

  1. Global geopolitical conflict (Russia-Ukraine) leading to increased volatility in commodity prices, stock, and foreign exchange markets.

Operational Focus Areas

  1. Assessing potential impact of geopolitical events on subsidiary activities.
  2. Ensuring compliance with new Indian Labour Codes.

Performance Drivers

  1. Consolidated revenue from operations increased to INR 169,458.25 million in FY2025 from INR 153,743.91 million in FY2024.
  2. Consolidated net profit turned around significantly to INR 1,358.94 million in FY2025 from a loss of INR 4,499.38 million in FY2024.

Risk Control Measures

  1. Management believes Russian operations are largely independent, limiting geopolitical impact on standalone results.
  2. Management is actively completing pending compliances and evaluating options for SHL.
  3. Management monitors developments pertaining to Labour Codes to assess future impact.
  4. Internal assessment and external counsel opinions suggest compliance with applicable laws and regulations.

Critical Risks

  1. Geopolitical conflict impacts supply chain, market volatility, and repatriation of dividends.
  2. Regulatory non-compliance and sanctions for subsidiary (Severtar Holding Limited).
  3. Uncertainties regarding re-domiciliation of SHL due to expired provisional certificate.
  4. Impairment charge on capital work in progress projects.
  5. Increased employee benefit liabilities due to new Labour Codes.
Rain Industries Ltd (RAIN) Quarterly Report Analysis & Insights | Dhanarthi