Rathi Steel and Power stock surged 7% on Monday's trading session after the company delivered exceptional Q4 FY26 results. The stock opened at ₹20.63 apiece on June 1, compared to the previous close of ₹18.76 on Friday. According to reports from Live Mint, the rally was driven by the company's robust financial performance in the March quarter.
The company reported total income of ₹244.57 crore in Q4 FY26, representing a remarkable 63.34% year-on-year growth compared to Q4 FY25. As reported by Live Mint, EBITDA rose 22.72% YoY to ₹9.89 crore in the March quarter. Profit after tax nearly doubled, surging 95.84% year-on-year to ₹7.45 crore, with the PAT margin improving by 51 basis points to 3.04%. Earnings per share stood at ₹0.86, marking a substantial 95.45% increase compared to the corresponding quarter of the previous year.
For the complete fiscal year FY26, total income surged 42% to ₹716.49 crore compared to ₹505.43 crore in FY25. According to Live Mint, EBITDA and PAT witnessed significant rises of 24% and 9% respectively in FY26. The company's strategic focus on improving product mix and operational efficiencies contributed to the strong performance despite market headwinds from macro-economic uncertainties and steel price volatility.
Despite recent near-term weakness, Rathi Steel and Power has delivered exceptional long-term returns of 845% over five years and 548% over ten years. As reported by Live Mint, the stock has fallen over 6% in a month and 9.57% in three months on a year-to-date basis. However, the multibagger stock has declined over 27.37% on a year-to-date basis and 37% in a year, reflecting recent market challenges.
Udit Rathi, Promoter of Rathi Steel And Power Limited, highlighted the company's resilience in challenging market conditions. According to Live Mint, he noted that growth was driven by healthy demand for products and the ramp-up of operations of the TMT bar mill. The company's focus on energy efficiency measures and green power initiatives contributed to better margins, with green power purchased through open access contributing to more than a quarter of overall power consumption during the year. Looking ahead, the company plans to further increase the green power contribution to more than 25% of total electricity consumption in future years.
