RHI Magnesita India Q2 profit rises 62% despite revenue dip

RHI Magnesita India Limited reported consolidated profit of Rs 62.10 crore for the quarter ended September 30, 2026, up 62.0% from Rs 38.35 crore a year earlier, despite revenue from operations declining 0.5% to Rs 1,030.29 crore. Total expenses fell 3.2% to Rs 953.00 crore, lifting profit before tax to Rs 85.21 crore.

How did RHI Magnesita India’s Q2 earnings change?

RHI Magnesita India’s consolidated profit rose by Rs 23.75 crore year on year to Rs 62.10 crore in the September 2026 quarter, from Rs 38.35 crore in the September 2025 quarter. Profit before tax increased by Rs 33.43 crore to Rs 85.21 crore, while total comprehensive income rose to Rs 61.56 crore from Rs 38.26 crore.

The sequential comparison was different: profit was Rs 64.01 crore in the quarter ended June 30, 2026, compared with Rs 62.10 crore in the September quarter. Profit before tax also declined from Rs 87.41 crore in June to Rs 85.21 crore in September. Basic and diluted earnings per share, or EPS, were Rs 3.01 in Q2, against Rs 1.85 a year earlier and Rs 3.13 in Q1; the company said interim-period EPS is not annualised.

Why did RHI Magnesita India’s profit rise despite lower revenue?

RHI Magnesita India’s Q2 profit rose because total expenses fell by Rs 31.68 crore, more than offsetting the Rs 5.06 crore fall in revenue from operations. That cost movement increased profit before tax by Rs 33.43 crore, even as other income declined to Rs 7.98 crore from Rs 11.02 crore in the comparable quarter.

Cost of materials consumed declined by Rs 45.50 crore to Rs 408.41 crore, and purchases of stock-in-trade fell by Rs 3.61 crore to Rs 204.54 crore. These reductions were partly offset by a Rs 16.82 crore increase in employee-benefit expense to Rs 107.27 crore. Finance costs declined to Rs 8.85 crore from Rs 9.45 crore, while depreciation and amortisation expense was Rs 50.13 crore in the September 2026 quarter.

RHI Magnesita India reported no exceptional item in either the September 2026 or September 2025 quarter. This distinguishes the quarterly comparison from the audited year ended March 31, 2026, when the group recognised a Rs 556.24 crore goodwill impairment at RHI Magnesita India Refractories Limited and reported a consolidated loss of Rs 382.94 crore for the year.

What were RHI Magnesita India’s first-half results?

RHI Magnesita India reported first-half profit of Rs 126.71 crore for the period from April 1, 2026 to September 30, 2026, compared with Rs 73.01 crore in the corresponding prior-year period. Revenue from operations increased 2.4% to Rs 2,044.26 crore, and profit before tax increased to Rs 172.01 crore from Rs 99.71 crore.

The first-half revenue trend was more positive than the second-quarter comparison because revenue in the June 2026 quarter was Rs 1,013.97 crore. First-half total expenses fell to Rs 1,888.91 crore from Rs 1,898.17 crore despite the Rs 48.59 crore increase in revenue, resulting in a Rs 72.30 crore increase in profit before tax.

How did working capital affect RHI Magnesita India’s cash flow?

RHI Magnesita India reported net cash inflow from operating activities of Rs 98.71 crore in the half-year ended September 30, 2026, up from Rs 60.28 crore a year earlier. Cash generated from operations increased to Rs 135.52 crore from Rs 80.97 crore, while net income-tax payments increased to Rs 36.81 crore from Rs 20.69 crore.

Working-capital movements absorbed cash through a Rs 89.89 crore increase in inventories, a Rs 42.80 crore increase in trade receivables and a Rs 33.04 crore decline in trade payables. Offsetting movements included a Rs 12.28 crore increase in contract liabilities and a Rs 12.20 crore increase in other current financial liabilities. In the comparable half-year, trade receivables had risen by Rs 126.24 crore and contract assets by Rs 94.77 crore.

Investing activities used Rs 193.80 crore in the latest half-year, compared with Rs 119.64 crore a year earlier. Purchases of current investments were Rs 2,006.90 crore and proceeds from their sale were Rs 1,898.90 crore, while capital expenditure on property, plant, equipment and intangible assets was Rs 38.39 crore, down from Rs 61.01 crore. Financing activities used Rs 90.36 crore, including Rs 297.72 crore of repayments under supplier-finance arrangements.

What changed in RHI Magnesita India’s balance sheet?

RHI Magnesita India’s total assets were Rs 5,005.01 crore at September 30, 2026, compared with Rs 4,860.72 crore at March 31, 2026. Current assets increased to Rs 2,790.87 crore from Rs 2,586.66 crore, including inventories of Rs 1,188.75 crore and trade receivables of Rs 746.34 crore.

Cash and cash equivalents declined to Rs 53.42 crore from Rs 157.57 crore over the six months, matching the reported Rs 104.14 crore net decrease in cash and cash equivalents. Current investments rose to Rs 270.03 crore from Rs 230.98 crore, and bank balances other than cash equivalents rose to Rs 53.04 crore from Rs 2.18 crore.

Total equity increased to Rs 3,639.02 crore from Rs 3,560.45 crore, including non-controlling interest of Rs 10.50 crore at September 30, 2026. Non-current borrowings declined to Rs 183.85 crore from Rs 212.54 crore, while current borrowings increased to Rs 136.28 crore from Rs 109.23 crore. During the quarter, RHI Magnesita India and Khemka Refractories Private Limited incorporated RHIM Khemka Minpro Private Limited on July 16, 2026 for mineral-processing activities, with RHI Magnesita India holding 51%.

Conclusion

RHI Magnesita India’s September-quarter result combined a 62.0% rise in profit with a 0.5% decline in revenue, as a Rs 31.68 crore reduction in total expenses more than offset lower sales and other income. First-half profit rose 73.6% to Rs 126.71 crore, while operating cash inflow increased by Rs 38.43 crore to Rs 98.71 crore despite higher inventories and receivables.

The next results will show whether working-capital absorption moderates after inventories reached Rs 1,188.75 crore and receivables reached Rs 746.34 crore at September 30, 2026. The company also plans mineral-processing activity through RHIM Khemka Minpro Private Limited, incorporated on July 16, 2026, while shareholders approved a Rs 2.50-per-share dividend at the September 29, 2026 annual general meeting.