RAIN - Rain Industries

📊 NSE: RAIN 🏢 Miscellaneous 📅 Last Updated: 12/14/2025 11:30

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 13.8% YoY to INR 4,475.7 Cr. The Carbon segment led growth with an increase of INR 487 Cr (~16.7% YoY), followed by Advanced Materials which grew by INR 46 Cr (~5.9% YoY). The Cement segment saw a marginal decline of INR 4 Cr (~1.5% YoY) due to extended monsoon and market consolidation.

Geographic Revenue Split

RAIN maintains a global footprint with 42% of consolidated revenue derived from sales to the aluminum sector across Indonesia, the Middle East, and the United States. Specific regional splits for other segments were not disclosed, though the company operates distillation and calcination facilities globally.

Profitability Margins

Net profit attributable to owners reached INR 106 Cr in Q3 2025, a significant turnaround from a loss of INR 179.1 Cr in Q3 2024. Profitability is recovering as the company moves toward 'normalized' levels following a period of macroeconomic pressure.

EBITDA Margin

Adjusted EBITDA margin stood at 14.5% (INR 648 Cr) in Q3 2025, a 121.8% increase from the INR 292 Cr reported in Q3 2024. The improvement was driven by higher realizations and lower operating costs in the Carbon segment (INR 302 Cr increase) and Advanced Materials (INR 33 Cr increase).

Capital Expenditure

The Board approved a brownfield expansion for the Cement business totaling INR 757 Cr. Maintenance CapEx for the period was INR 352 Cr (US$ 41 million).

Credit Rating & Borrowing

Outstanding standalone debt is INR 241.99 Cr with a debt-equity ratio of 0.26. The company recently repaid US$ 44 million of its 2025 Notes to optimize its capital structure.

⚙️ Operational Drivers

Raw Materials

Key raw materials include Coal Tar (by-product of steel) and Green Petroleum Coke (GPC, by-product of oil refining). These constitute the bulk of the cost of goods sold for the Carbon and Advanced Materials segments.

Import Sources

Sourced globally from oil refineries and steel plants. Specific geographic sourcing includes India (for the new distillation facility) and North America/Europe for global operations.

Key Suppliers

Suppliers include major global oil refineries (for GPC) and steel manufacturers (for Coal Tar). Specific company names like Northern Graphite and Green Graphite Technologies are mentioned for R&D collaborations.

Capacity Expansion

Current capacities: Calcination at 2.4 MTPA, Coal Tar Distillation at 1.3 MTPA, Advanced Materials at 0.5 MTPA, and Cement at 4.3 MTPA. Cement is expanding to 6.6 MTPA (a 53% increase) via a brownfield project.

Raw Material Costs

Raw material costs were impacted by elevated prices and higher inventory levels following the relief of import restrictions. The company manages costs through long-standing supplier relationships and an integrated converter model.

Manufacturing Efficiency

Efficiency is driven by co-generation of power and the use of by-products. The company measures performance on an 'EBITDA per tonne' basis rather than percentage to account for raw material price fluctuations.

Logistics & Distribution

RAIN utilizes a diversified geographical footprint and an advantageous freight network to serve non-Chinese aluminum smelters efficiently.

📈 Strategic Growth

Expected Growth Rate

15-20%

Growth Strategy

Growth will be achieved through a 2.3 MTPA expansion in Cement capacity, the commencement of Indian carbon distillation operations in H2 FY26, and R&D into Battery Anode Materials (BAM) for the EV market. The company is also pivoting toward high-margin specialty products in the Advanced Materials segment.

Products & Services

Calcined Petroleum Coke (CPC), Coal Tar Pitch (CTP), Carbon Black Oil (CBO), Cement bags, Pavement sealers, Creosote, and naphthalene-based specialty chemicals.

Brand Portfolio

RAIN, RAIN Carbon Inc., and various seasonal product lines like pavement sealers.

New Products/Services

New initiatives include Battery Anode Material (BAM) and Energy Storage Materials (ESM). Revenue from the Indian distillation facility is expected to scale significantly in FY27.

Market Expansion

Targeting the Indian market for carbon distillation and global markets for BAM. The company is focusing on non-Chinese aluminum smelters due to Chinese capacity caps.

Market Share & Ranking

RAIN is a leading global producer of CPC and CTP, benefiting from a structural shift as China enforces a 45 million tonne cap on domestic smelting.

Strategic Alliances

Strategic collaboration with Northern Graphite (CAD 3.1 million project) and an agreement with Green Graphite Technologies for BAM R&D.

🌍 External Factors

Industry Trends

The industry is shifting toward non-Chinese supply for carbon products due to China's environmental caps on smelting. RAIN is positioning itself to capture this 'structural shift' in demand.

Competitive Landscape

Competitors include national players in the Indian cement market and global carbon chemical producers. RAIN differentiates through specialty, high-performance products.

Competitive Moat

Moat is built on an integrated 'converter' model, proprietary R&D in distillation, and strategically located global facilities that provide logistics advantages.

Macro Economic Sensitivity

Sensitive to global aluminum demand and construction cycles. Easing macroeconomic pressures are expected to help normalize performance.

Consumer Behavior

Increased prioritization of reliability, sustainability, and performance by global customers is driving demand for RAIN’s advanced materials.

Geopolitical Risks

Trade barriers and geopolitical tensions are cited as ongoing uncertainties that could impact demand and margin stability.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to import restrictions on raw materials (recently relieved) and Chinese government caps on national smelting capacity (45 million tonne limit).

Environmental Compliance

The company is focused on ESG compliance for sustainable operations, including 187 MW of co-generation and solar power to meet environmental standards.

Taxation Policy Impact

The average Effective Tax Rate (ETR) is expected to be 32-36%. The 2025 US Tax Bill now allows interest expense deductions based on EBITDA (vs EBIT), improving cash flow.

Legal Contingencies

Not specifically disclosed in the provided documents.

⚠️ Risk Analysis

Key Uncertainties

Key risks include volatility in raw material prices (GPC/Coal Tar), potential for new capacity additions in the cement sector, and global trade barriers.