RHI Magnesita auditor resigns: SEBI disclosure, 2026

What the company disclosed to exchanges

RHI Magnesita India Limited has received a formal notice from its statutory auditor, Price Waterhouse Chartered Accountant LLP, stating its intention to resign. The company disclosed that the resignation is to be effective from August 14, 2026. The notice applies not only to RHI Magnesita India Limited but also to its wholly-owned material subsidiary, RHI Magnesita India Refractories Limited (RHIMIRL).

The company said it received the resignation letters and disclosed the development on August 9, 2026 through filings with BSE Limited and the National Stock Exchange of India Limited (NSE). The filing also noted that this event triggers mandatory disclosures under the SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015.

Auditor resignation timeline and key dates

The disclosure sets out a clear effective date for the resignation and establishes the sequence of events for investors to track. While the resignation has been communicated, the company indicated that additional steps and disclosures are expected.

The company secretary, Sanjay Kumar, stated that the detailed disclosures required under Regulation 30 of the Listing Regulations will be submitted in due course. At this stage, the company has not specified the reasons for the auditor’s departure in the initial filing.

Resignation applies to the parent and a key subsidiary

The auditor’s intended resignation covers both the listed entity and RHIMIRL, described as a wholly-owned material subsidiary. In practice, auditor changes at a parent and a major subsidiary can increase the volume of compliance actions needed, including exchange filings and company law procedures.

Because the subsidiary is specifically mentioned in the disclosure, the market will likely treat the development as broader than a single-entity auditor transition. The company has indicated that the resignation will take effect on the same date for both entities.

What SEBI LODR requires after such a notice

The company flagged that the development triggers disclosure requirements under SEBI (LODR) Regulations, 2015. Under this framework, listed companies typically provide timely updates to stock exchanges for material events and submit prescribed details under Regulation 30.

RHI Magnesita India has stated that it will provide the detailed Regulation 30 disclosures later. Until that information is submitted, the filing primarily establishes the fact of the resignation notice, the effective date, and the entities covered.

Procedural steps still pending under the Companies Act, 2013

The company noted that the resignation process involves further procedural steps. These include submission of signed documents and, if required under the Companies Act, 2013, a general meeting resolution. The disclosure does not confirm whether such a resolution will be required in this case, but it highlights that the process is not limited to the initial exchange filing.

For investors, this means the auditor transition may include additional announcements, such as completion of formal documentation, appointment of a new auditor, and any shareholder-related approvals if applicable.

Reasons for resignation not disclosed in the initial filing

The company explicitly stated that it has not yet specified the reasons for the auditor’s departure in the initial filing. This is a key limitation of the currently available information. Any clarity on the auditor’s rationale, the company’s response, and next steps is expected only when the detailed Regulation 30 disclosures are submitted.

Separately, the company noted that Price Waterhouse Chartered Accountants LLP had issued an audit report with an unmodified opinion on the financial statements, as referenced in the provided information.

Financial context: FY26 loss and impairment charges

The auditor development comes after a year in which the company reported a sharp swing in profitability. RHI Magnesita India reported a net loss of ₹467.69 crore for FY26 (financial year ended March 31, 2026). This was compared with a net profit of ₹223.00 crore in the previous year.

The FY26 result was stated to be impacted by exceptional impairment charges of ₹660.92 crore. The company also referenced that it had reported a net loss of ₹345.06 crore during the financial year ended March 31, 2024.

The board also recommended a final dividend of ₹2.50 per share (250% of face value of Re. 1 each) for FY 2025-26, as per the provided details.

Prior audit engagements referenced by the company

The provided information also includes earlier references to Price Waterhouse Chartered Accountants LLP as the statutory auditor. It states that the firm was appointed as statutory auditor for a five-year period from FY 2023-24 to FY 2027-28, with approval referenced around late June 2023, and aligned with the holding company’s auditor.

In addition, a February 11, 2025 disclosure referenced that the board approved unaudited consolidated and standalone financial results for the quarter and nine months ended December 31, 2024, and that the statutory auditor issued limited review reports on those results.

Other governance updates cited: director changes

The information provided also mentions board-related changes disclosed under Regulation 30. It references the appointment of Mr. Alvaro Martin Rivero (DIN: 11433702) as an Additional Director (Non-Independent and Non-Executive) with effect from January 14, 2026, subject to shareholder approval.

It also references a disclosure about the resignation of Ms. Ticiana Kobel as a Non-Executive Director, and a related NSE item timestamped Wednesday, August 5, 2026 (15:55:49), which also referenced committee reconstitution and disclosed qualifications.

Stock reference and investor watchpoints

The current price of RHI Magnesita India Ltd was stated as ₹409.00 in the provided data. No intraday move or percentage change was cited alongside this price, so the filing should be read primarily as a corporate governance and compliance development rather than a quantified market move.

For investors, the key near-term watchpoint is the company’s promised detailed Regulation 30 disclosure, including any formal statements around the resignation, completion of procedural steps, and subsequent actions on auditor appointment.

Key facts summary

Conclusion

RHI Magnesita India has informed exchanges that its statutory auditor, Price Waterhouse Chartered Accountant LLP, has expressed an intention to resign with effect from August 14, 2026, for both the company and its wholly-owned material subsidiary. The company has stated that detailed disclosures required under Regulation 30 will be filed in due course, and that the resignation process includes additional procedural steps under the Companies Act, 2013. The next confirmed milestone is the submission of the detailed Regulation 30 disclosure and any follow-on filings related to completing the resignation and auditor transition.