Rain Industries Q2 FY26 Results (NSE: RAIN)
Signal: Margins at cyclical peak
The read
The earnings inflection remains margin-led: the presentation reports adjusted EBITDA margin at 19.2%, up 520bps YoY, after OPM improved from 14% in Q2FY26 history to 19% in the latest series, driven by Carbon raw-material blend optimisation and cost savings plus Advanced Materials pricing, while Cement remains a drag and Q3 outlook is cautious.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹0.97 Cr | N/A | N/A |
| EBIT | ₹0.12 Cr | N/A | |
| Net profit | ₹0.04 Cr | N/A | |
| EPS | ₹12.42 | N/A | |
| EBIT margin | 18% |
P&L walk
The consolidated presentation shows revenue from operations of ₹51672 million, up 17.4% YoY, adjusted EBITDA of ₹9935 million, up 61% YoY, and adjusted PAT of ₹3173 million versus ₹495 million, with the recovery led by Carbon and Advanced Materials while Cement weakened.
Segments
Carbon remained the largest segment at ₹37700 million of revenue, while Advanced Materials was the fastest-growing disclosed business at ₹10730 million, up 31.2% YoY; Cement declined 8.9% YoY to ₹2970 million as volumes and realisations fell.
Key positives
- Adjusted EBITDA increased 61% YoY to ₹9935 million and adjusted EBITDA margin expanded to 19.2% from 14.0%, supported by raw-material sourcing, blend optimisation and cost-saving initiatives.
- Carbon revenue increased to ₹37700 million, with management citing higher prices and foreign-exchange support despite 10.5% lower volumes.
- Advanced Materials revenue increased 31.2% YoY to ₹10730 million, driven by pricing increases and higher Engineered Products volumes.
- H1 operating cash flow improved to an inflow of ₹1877 million from an outflow of ₹1967 million in H1 2025.
Key concerns
- Cement revenue declined 8.9% YoY to ₹2970 million as volumes fell 6.9% and net sales price realisations declined; segment EBITDA fell to ₹150 million from ₹250 million.
- Q3 outlook remains cautious because of geopolitical, logistics and commodity-market volatility.
- Net debt increased to US$892 million from US$837 million at December 2025, while working-capital debt rose to US$257 million from US$190 million.
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