Rain Industries Ltd

Meeting Details

• Board meeting on November 6, 2026 at Rain Center, 34, Srinagar Colony, Hyderabad.

Key Agenda Items

• Approve unaudited Q3-2026 results (standalone, consolidated, segment) for the quarter ended September 30, 2026.

Other Notes

• Trading window closed from October 1, 2026 to November 11, 2026.

Rating action

• India Ratings affirms IND A rating with Stable outlook for Rain Industries Ltd.

Instruments / Facilities Rated

• Issuer rating IND A (Outlook Stable) for Rain Industries Ltd.

Rating Agency

• India Ratings & Research

Rationale

• Rationale not disclosed in the filing.

Outlook

• Stable

Material changes since last rating

• No change from prior year's rating.

Q2 2026 results snapshot

• Carbon segment volumes down ~10% YoY; utilisation at 69%.
• Deferred shipments about 10,000–15,000 tonnes; quarter impact offset by other products.
• Q2 benefited from mix and market conditions; not a single driver.

Market outlook

• Aluminium market expected to stay reasonably supported; China 45 Mt cap cited.
• Rain pricing driven by local supply-demand, raw materials, and logistics.

Capex expansion in India

• India CTP capacity expansion progressing; first-phase distillation unit planned to start early 2028.

Debt, refinancing and leverage

• Second lien notes yield below coupon; refinancing considered if economically attractive.
• Target net-debt-to-EBITDA around 3x over time; deleveraging via working capital.

Working capital and cash flow

• Working capital rose due to safety stock for Indian calciners; unwind as supply chains normalise.

Advanced Materials progress

• Adv Materials growth aided by greener materials; partnership on mesophase carbon micro-beads.

Financial performance highlights

• Un-Audited Q2 2026 results released for standalone, consolidated and segment performance.
• Consolidated revenue INR 51.40 billion, up INR 8.05 billion YoY.
• Adjusted EBITDA INR 9.94 billion, up INR 3.77 billion YoY; led by Carbon and Advanced Materials.
• Carbon revenue INR 37.70 billion, +INR 5.79 billion (18.1% YoY); Distillation contributed to growth.

Debt and liquidity

• Gross debt USD 1.064bn; working capital borrowings USD 0.257bn; net debt USD 0.892bn; net debt/EBITDA 2.8x.
• Cash USD 172m; undrawn revolvers USD 141m; next significant debt maturity October 2028.
• Capex including plant turnaround totaled USD 26m in H1; safety stock increased working capital.

Outlook and operational trends

• Cement segment volumes declined 8.9% YoY due to competition in South India.
• Amaravati development could drive demand from Q4 2026, depending on project timing.
• Management remains cautious but optimistic; focusing on margin recovery, cost optimization, and diversified supply chains.

Key financial highlights

• Purpose: Earnings presentation of Q2 2026 unaudited results (standalone, consolidated and segment).
• Q2 2026 revenue from operations ₹51,672 million.
• Adjusted EBITDA ₹9,935 million; up 61% vs Q2 2025.
• Total debt US$1,064m; cash US$172m; net debt US$892m.
• Total liquidity US$313 million (cash US$172m and undrawn US$141m).
• Debt maturity runway: Oct 2028; no significant maturities before then.
• H1 2026 operating cash flow ₹1,877 million; investing ₹(66) million; financing ₹470 million.
• Adjusted EPS Q2 2026 ₹9.43.
• PAT Q2 2026: reported ₹2,962 million; adjusted ₹3,173 million.
• Outlook: cost management; cautious Q3 amid geopolitical and logistics volatility.

Special Resolution: Re-appointment of Independent Director

• Special Resolution to re-appoint Robert Tonti as Independent Director for 5 years (Oct 2026–Oct 2031).
• Experience: over 44 years in calcining petroleum coke and energy production.
• Independence: meets independence criteria; not related to directors or KMP.
• Ownership: does not hold company shares.
• Outcome: voting results to be announced by Sept 11, 2026.