RHETAN - Rhetan TMT Ltd
📢 Recent Corporate Announcements
Rhetan TMT Limited has issued a postal ballot notice to seek shareholder approval for a significant amendment to its Memorandum of Association. The company intends to diversify its operations by entering the commodity trading business, covering agricultural products, metals, energy, and bullion. This expansion includes physical trading as well as hedging and arbitrage through derivatives in both Indian and international markets. The e-voting period for this special resolution is scheduled from February 17 to March 18, 2026.
- Proposed addition of Clause III [A] (5) to the MoA to enable comprehensive commodity trading operations.
- Business scope includes precious and base metals, minerals, energy products, and agricultural commodities.
- Authorization sought for trading via spot, forward, futures, options, and other derivative contracts globally.
- Remote e-voting period runs from February 17, 2026, to March 18, 2026, with results by March 20, 2026.
- The cut-off date for eligibility to vote is February 13, 2026.
Rhetan TMT Limited's Board of Directors met on February 12, 2026, and approved a significant amendment to the company's Memorandum of Association (MOA). The amendment involves inserting a new main object clause to allow the company to venture into trading, hedging, and investing in various commodities. This includes precious metals, bullion, energy products, and agricultural commodities across physical and derivative markets. The expansion is subject to shareholder approval via a postal ballot e-voting process.
- Board approved the insertion of Clause III [A] (5) into the Main Object Clause of the MOA.
- New business scope includes trading in metals, bullion, minerals, energy, and agricultural products.
- Authorized to deal in physical forms as well as spot, forward, futures, and options contracts.
- The diversification strategy covers both domestic and international commodity markets.
- The amendment is pending final approval from shareholders through a postal ballot.
Rhetan TMT reported a robust Q3 FY26 with net profit jumping 220% year-on-year to ₹4.45 crore, primarily driven by a significant spike in other income. While revenue from operations showed a slight 3.5% YoY decline to ₹6.15 crore, it grew 29% on a sequential basis. The company is also seeking shareholder approval via postal ballot to diversify its business into trading and hedging of various commodities, including metals and bullion. For the nine-month period ended December 2025, the company has already surpassed its full-year FY25 profit, reaching ₹8.08 crore.
- Net Profit for Q3 FY26 rose to ₹444.78 Lakh compared to ₹139.05 Lakh in Q3 FY25, a 220% increase.
- Total Income for the quarter stood at ₹932.72 Lakh, bolstered by ₹317.24 Lakh in Other Income.
- 9M FY26 Net Profit reached ₹807.93 Lakh, nearly doubling the ₹446.55 Lakh recorded in the same period last year.
- Board approved an amendment to the Memorandum of Association to include trading in agricultural and non-agricultural commodities, metals, and bullion.
- Earnings Per Share (EPS) for the quarter improved to ₹0.06 from ₹0.02 in the previous year's corresponding quarter.
Rhetan TMT reported a robust net profit of ₹444.78 Lakh for Q3 FY26, a 220% increase from ₹139.05 Lakh in Q3 FY25, despite a slight dip in operational revenue. The bottom line was significantly bolstered by 'Other Income' which rose to ₹317.24 Lakh during the quarter. Additionally, the company is diversifying its business model by entering the commodity trading sector, covering metals, minerals, and agricultural products. This strategic expansion will be finalized following a postal ballot for shareholder approval.
- Net Profit increased 220% YoY to ₹444.78 Lakh in Q3 FY26 from ₹139.05 Lakh.
- Other Income spiked to ₹317.24 Lakh compared to just ₹0.50 Lakh in the same quarter last year.
- Nine-month FY26 profit reached ₹807.93 Lakh, already surpassing the full-year FY25 profit of ₹494.90 Lakh.
- Board approved a new business vertical for trading, importing, and hedging in various commodities including metals and energy.
- Quarterly EPS tripled from ₹0.02 to ₹0.06 on a year-on-year basis.
Rhetan TMT Limited has finalized the appointment of Mr. Swapnil Sharad Shimpi as a Non-Executive Independent Director following shareholder approval on February 4, 2026. The appointment is effective for a five-year term starting from November 10, 2025, through November 9, 2030. Mr. Shimpi, 44, brings marketing and analytical expertise with an MBA background to the company's board. This regularization ensures the company remains compliant with SEBI's corporate governance requirements regarding independent board representation.
- Mr. Swapnil Sharad Shimpi appointed as Independent Director for a 5-year term starting Nov 10, 2025.
- Shareholders approved the appointment via Postal Ballot on Feb 4, 2026.
- The appointee is 44 years old and holds an MBA in Marketing.
- The director has not been debarred by SEBI or any other regulatory authority.
Rhetan TMT Limited has announced the successful passing of a special resolution via postal ballot for the regularization of Mr. Swapnil Sharad Shimpi as a Non-Executive Independent Director. The resolution received near-unanimous support, with 99.9999% of the 578.5 million votes cast in favor. Promoter participation was nearly 100%, while public non-institutional shareholders showed a 27.67% turnout. This move ensures the company remains compliant with SEBI governance and board composition regulations.
- Special resolution passed for the appointment of Mr. Swapnil Sharad Shimpi as a Non-Executive Independent Director.
- Total votes in favor reached 578,513,302 (99.9999%) with only 825 votes cast against.
- Promoter group polled 494,999,250 votes, representing nearly 100% of their holding.
- Public non-institutional shareholders recorded a polling percentage of 27.67% (83.5 million votes).
- The voting process was conducted via remote e-voting from January 6 to February 4, 2026.
Rhetan TMT Limited has successfully passed a special resolution via postal ballot for the regularization of Mr. Swapnil Sharad Shimpi as a Non-Executive Independent Director. The resolution received overwhelming support, with 99.9999% of the 578.51 million votes cast in favor. Promoter participation was nearly 100%, while public non-institutional participation stood at approximately 27.67%. This move strengthens the company's board governance and ensures compliance with SEBI listing regulations.
- Special resolution passed for the appointment of Mr. Swapnil Sharad Shimpi as Non-Executive Independent Director.
- A total of 578,514,127 votes were polled, representing 72.14% of the total shareholding.
- The resolution received 578,513,302 votes in favor (99.9999%) and only 825 votes against.
- Promoter group cast 494,999,250 votes, showing full alignment with the board's proposal.
- Public non-institutional shareholders cast 83,514,877 votes with 99.999% in favor.
Rhetan TMT Limited has submitted its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018, for the quarter ended December 31, 2025. The Registrar and Share Transfer Agent, Bigshare Services Private Limited, confirmed that no requests for dematerialization or rematerialization were received during this period. The company maintains its entire shareholding in dematerialized form, ensuring efficient record-keeping. This is a standard regulatory disclosure with no impact on the company's financial or operational standing.
- Compliance certificate submitted for the quarter ended December 31, 2025.
- Registrar confirms zero requests for dematerialization or rematerialization during the quarter.
- 100% of the company's shares are currently held in dematerialized form.
- The filing adheres to SEBI (Depositories and Participants) Regulations, 2018.
Rhetan TMT Limited has issued a postal ballot notice to seek shareholder approval for the regularization of Mr. Swapnil Sharad Shimpi as a Non-Executive Independent Director. The proposed appointment is for a five-year tenure effective from November 10, 2025, to November 9, 2030. Shareholders can participate in the decision via remote e-voting, which is scheduled to take place between January 6 and February 4, 2026. The final results of the postal ballot will be announced by February 6, 2026.
- Proposed appointment of Mr. Swapnil Sharad Shimpi as Independent Director for a 5-year term starting Nov 10, 2025.
- Remote e-voting period set from January 6, 2026 (9:00 AM) to February 4, 2026 (5:00 PM).
- Cut-off date for determining shareholder eligibility to vote was January 2, 2026.
- Voting results to be declared on or before February 6, 2026, and communicated to BSE and NSE.
Rhetan TMT Limited held a board meeting on January 2, 2026, to approve a postal ballot for the regularization of an Additional Independent Director. The company has established January 2, 2026, as the cut-off date for determining shareholder eligibility for e-voting. The e-voting window is scheduled to run from January 5 to February 4, with the final results expected to be declared by February 5. This is a standard corporate governance procedure to formalize board-level appointments.
- Board approved the Notice of Postal Ballot for regularizing the appointment of an Additional (Independent) Director
- January 2, 2026, set as the cut-off date for determining shareholder eligibility for e-voting
- E-voting period scheduled from January 5 to February 4, with results by February 5
- Mr. Chintan K. Patel appointed as the Scrutinizer to oversee the postal ballot process
Rhetan TMT Limited has announced the closure of its trading window starting January 1, 2026, in compliance with SEBI insider trading regulations. This closure is ahead of the declaration of the unaudited financial results for the quarter ending December 31, 2025. The window will remain closed for all designated persons and their immediate relatives until 48 hours after the results are officially announced. This is a standard regulatory procedure for listed companies to prevent insider trading before financial disclosures.
- Trading window closure begins on January 1, 2026
- Closure pertains to the unaudited financial results for the quarter ended December 31, 2025
- Window will reopen 48 hours after the official declaration of financial results
- Restriction applies to all designated persons and their immediate relatives as per SEBI norms
Financial Performance
Revenue Growth by Segment
The company operates in a single segment, manufacturing TMT Bars, which generated a total revenue of Rs. 3,873.92 Lakhs in FY 2024-25.
Profitability Margins
Operating Profit Margin stood at 13.37% (up 21.77% YoY). Net Profit Margin was 13.32% (up 122.68% YoY), driven by increased profit after tax and a decrease in revenue from operations.
EBITDA Margin
Operating Profit Margin was 13.37% for FY 2024-25, representing a 21.77% improvement over the 10.46% recorded in FY 2023-24.
Operational Drivers
Raw Materials
Steel and labor are the primary operational inputs, though specific percentage costs for each are not disclosed.
Raw Material Costs
Raw material costs are under pressure due to global market fluctuations; the company focuses on cost reduction exercises to manage these expenses.
Manufacturing Efficiency
The company focuses on operational efficiency and reliability of operations to maintain product quality and productivity.
Logistics & Distribution
The company manages inventory and logistics to bridge the gap between steel manufacturers and consumers, though specific costs are not disclosed.
Strategic Growth
Growth Strategy
Growth is targeted through cost reduction, operational efficiency, strategic expansion, and enhanced marketing and branding efforts. The company is also targeting niche global opportunities and untapped domestic regions.
Products & Services
The company manufactures and sells TMT Bars.
Brand Portfolio
Rhetan TMT.
Market Expansion
The company plans to penetrate regions not yet tapped and target niche opportunities in the global arena.
Strategic Alliances
The company identifies potential for productive foreign collaborations to drive growth.
External Factors
Industry Trends
India became a net importer of steel for the second consecutive year, with imports rising 38.1% to 8.3 million tonnes. The industry is shifting toward capacity increases to restore net exporter status.
Competitive Landscape
Competition has intensified, forcing players to adopt aggressive marketing and promotional campaigns to protect market shares.
Competitive Moat
The company's moat is built on its marketing network, strategic planning, and R&D capabilities, which it uses to maintain product quality and customer retention.
Macro Economic Sensitivity
The business is sensitive to global recessionary trends, economic slowdowns, and fluctuating global market conditions in the steel sector.
Consumer Behavior
Demand is driven by stainless steel-intensive investments in engineering, defense, and consumer durables.
Geopolitical Risks
Geopolitical risks include trade barriers and the government's 12% safeguard duty on select steel products to protect domestic producers.
Regulatory & Governance
Industry Regulations
Operations are subject to the Companies Act 2013 and SEBI regulations. A 12% safeguard duty on select steel products impacts the import-export dynamics.
Environmental Compliance
The company focuses on environment-friendly processes for effective resource usage, though specific ESG costs are not disclosed.
Legal Contingencies
The company was noted for non-compliance with Section 186(7) of the Companies Act, 2013, regarding the non-charging of interest on some loans granted.
Risk Analysis
Key Uncertainties
Key risks include political and regulatory changes, raw material price volatility, and labor shortages.
Third Party Dependencies
Dependency on steel suppliers and labor providers is a noted risk, though specific vendor names are not disclosed.
Technology Obsolescence Risk
Technology changes are identified as a potential risk to the business model.
Credit & Counterparty Risk
Debtors turnover ratio was 1.62, a 37.28% decrease from 2.58 in the previous year, indicating a change in the collection cycle relative to revenue growth.