RHIM
Large CapRHI MAGNESITA INDIA LIMITED
Industrials
RHI Magnesita India Limited is a leading supplier of high-grade refractory products, systems, and solutions for industrial high-temperature processes (exceeding 1,200°C) in steel, cement, non-ferrous metals, and glass industries. It holds a 30%+ market share in India and operates 8 production plants and 2 mines.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is acceptable, price trend is neutral, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/5 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Bad · 0/100PAT -1539% YoY · margin compression · Rev +2% YoY
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹932 Cr | +1.5% | -14.7% |
| EBITDA | ₹87 Cr | -6.5% | -39.2% |
| Operating margin | 9.0% | -100 bps | -400 bps |
| PAT | ₹-518 Cr | -1538.9% | -935.5% |
| PAT margin | -55.6% | -5950 bps | -6126 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
RHIM achieved record annual revenue of ₹4,020 Cr in FY26, up 9% YoY, driven by market share gains in Steel and Iron-making. Adjusted EBITDA declined 6% YoY to ₹477 Cr, with margins at 11.9% (vs 13.7% in FY25), impacted by rupee devaluation and input costs. Net Debt/EBITDA turned to Net Cash Positive.
While RHIM delivered record revenue and strong cash generation, margin compression due to input costs and rupee depreciation, coupled with a significant goodwill impairment, raises concerns. The company's strategic focus on 4PRO contracts, localization, and R&D-driven innovation is positive, but execution on margin recovery and working capital management will be key.
Expansion in Ironmaking, DRI & Pellets
Driving growth in a strong industry with new coke oven and DRI projects, and increased market share in blast furnace runner management.
Expand 4PRO Contracts
Securing new 4PRO contracts, evolving from product supply to strategic partnerships and customer-tailored solutions, including robotic solutions in caster operations.
R&D-driven Innovation and Product Harmonization
Developing new products like Magnesia Chrome bricks for RH Degasser and High Chrome bricks for petrochemical use, alongside product standardization for cost efficiency.
Becoming a Preferred OEM Supplier
Executing strong Ironmaking project orders through OEM orders in DRI, coke ovens & Pellets, and strengthening supply capabilities for coke oven batteries.
Quartzite Mines Commissioning
Quartzite mines acquired through M&A completely transferred legally to RHIMIR, with operations set to commence in Q1 FY27.
Silica Bricks Manufacturing Capability
Developed a fully local automatic press in Rajgangpur, enhancing Silica Bricks manufacturing capabilities.
Ceramic Welding Operations
Initiated ceramic welding operations for coke oven maintenance in India, technology transferred from RESCO USA.
Tap Hole Clay Line
Commissioned a new semi-automatic tap hole clay line in Jamshedpur to meet rising demand from large blast furnaces.
Steel Industry Acceleration
Steel industry is accelerating on the back of infrastructure and manufacturing growth, driven by strong domestic consumption, expanding capacity, and strengthening exports.
Cement Industry Demand
Cement industry delivered improved Q4 margins on higher production, with demand fueled by infrastructure spending and urbanization.
Government Infrastructure Spending
Strong government spending on railways, roads, water infrastructure, housing, and industrial capex continues to support long-term pig iron demand.
Global Market Challenges
Global industrial markets remain challenged by geopolitical volatility, rupee depreciation, and elevated input costs in raw materials and energy.
Refractory Industry Margin Pressures
Refractory industry continues to face margin pressures from rising raw material and energy costs, with intensified competition from capacity buildup.
Cement Sector Market Share Loss
Market share loss in cement sector in alumina bricks & mixes due to commoditization and competition behavior.
Export Volume Impact
Export volumes impacted by geopolitical disruptions in key markets.
Margin Compression
Margins were impacted by Rupee devaluation and increase in key input cost of Tabular Alumina, Fused Magnesia and Quartzite.
Intensified Competition
Refractory industry faces intensified competition from capacity buildup, making cost management and strategic differentiation critical.
Goodwill Impairment
Recognition of Impairment of Goodwill on acquired Assets of ₹55,624 Lakhs in FY26.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY comparison is essential for assessing overall annual performance and strategic direction in a seasonal business. QoQ comparison is useful for tracking sequential momentum, margin trends, and working capital changes in a dynamic market.
Revenue from Operations
₹40,199.5 Lakhs in FY26, +9.4% YoY (FY25: ₹36,745.0 Lakhs).
Adjusted EBITDA
₹4,768.9 Lakhs in FY26, -5.6% YoY (FY25: ₹5,051.5 Lakhs).
Adjusted EBITDA Margin
11.9% in FY26, down from 13.7% in FY25.
Shipment
523 KT in FY26, +5% YoY (FY25: 500 KT).
Outgrow the Market
Drive above industry growth through expansion in Ironmaking, DRI & Pellets, flow control, and industrial applications, and becoming a preferred OEM Supplier.
Expand 4PRO Contracts
Evolve from product supply to strategic partnerships by moving beyond product-led solutions to customer-tailored solutions and securing long-term contracts.
Drive Cost Competitiveness
Drive efficiency and margin improvement through product transfers for 'Make in India' initiative, recipe optimization, and operational excellence programs.
Build Sustainability Edge
Advance long-term resilience and differentiation by implementing circular economy initiatives and embedding an ESG-aligned operating model.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Adjusted EBITDA Margin | 11.9% (FY26) | Improvement from current levels, indicating successful cost management and pricing power amidst input cost pressures. |
| Working Capital Intensity | 38% (Mar-26) | Further reduction in intensity, indicating better cash conversion and efficient inventory management. |
| 4PRO Contract Deployments | Successfully operating 2 robots at largest Integrated Steel Plant of India. | Expansion discussions translating into new deployments and increasing revenue contribution from advanced solutions. |
| Quartzite Mines Operations | Legal transfer complete, operations set to commence Q1 FY27. | Timely commissioning and contribution to raw material cost competitiveness and supply chain resilience. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Show extracted source claims
India is forecast to be the highest growth major market for refractories globally, with a 6-8% CAGR.
"India is the highest growth major market for refractories globally, with 6-8% CAGR forecast"
Margins are expected to uplift in upcoming quarters.
"uplift expected in upcoming quarters"
Recipe optimization, productivity initiatives with lower input cost shall boost profitability in the upcoming quarters.
"shall boost profitability in the upcoming quarters"
Profitability momentum is expected in upcoming quarters due to secured key price increases.
"profitability momentum expected in upcoming quarters"
The next robot commissioning is already scheduled.
"Next robot commissioning already scheduled"
Trend score and candlestick chart
45NeutralSMA20 -8.8% / mo
Technical chart
RHIMweekly · 3Y-33.4%Technical trend read
Mixed signalsSignals are conflicting — long-term trend unclear. RSI 46. Wait for confirmation.
- SMA20 falling (~9.7% over last month) — short-term momentum negative.
- RSI(14) at 46 — rising, no extreme reading.
- MACD above signal, histogram expanding — bullish momentum building.
- 29% off 52W high · 18% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
OVERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 7/9.
- Balance sheet contributes 11/15 to the score.
- Cash flow contributes 4/10 to the score.
Main drags
- Fair-value margin of safety is negative at -1121.5%.
- Quality is weaker at 0/20; verify the latest quarterly trend.
- Valuation is weaker at 4/30; verify the latest quarterly trend.
Blended valuation: PE, EV/EBITDA, FCF yield, and balance-sheet checks
For this sector, IndiaPulse uses a blended lens rather than relying on a single valuation ratio.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 49th percentile of the scored universe and 45th percentile within Industrials. Main check: financial discipline is weak at 28/100.
Healthy Trust Lite: Promoter holding is 56.1%. Key concern: 2 latest quarters had PAT decline worse than 25% YoY.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Industrials: 45th pctile, median 68 · Large: 28th pctile, median 74
72 documents indexed, but claim history is not strong enough yet.
5 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 56.1%.
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 0.9%.
- ▸5 years of positive FCF.
Trust risks
- ▸2 latest quarters had PAT decline worse than 25% YoY.
- ▸ROCE is low at 6.5%.
- ▸ROE is low at 2.9%.
- ▸Revenue CAGR is 14% but EPS CAGR is -26%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 70.60
- P/B
- 2.19
- EV/EBITDA
- 12.88
- Market Cap
- 7782.00Cr
Profitability
- ROE
- 2.91%
- ROCE
- 6.52%
- ROA
- -7.88%
- Dividend Y
- 0.66%
Growth (CAGR)
- Revenue 5Y
- 24.00%
- EPS 5Y
- -4.00%
- Revenue 3Y
- 14.00%
- EPS 3Y
- -26.00%
Balance Sheet
- Debt/Equity
- 0.13
- Interest Coverage
- 11.95×
- Altman Z
- 6.00
- Book Value
- 172.00
Cash Flow
- FCF Yield
- 0.90%
- FCF Positive Y
- 5/5
- OCF
- 409.00 Cr
- EPS TTM
- -18.54
Shareholding
- Promoter Hold
- 56.07%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 25%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Industrials — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.