Rathi Steel And Power Releases Its Q3 Results For FY25 And Acquires BIS Certification

A member of the company's promoter group, PCR Holdings Pvt. Ltd., has purchased 45,000 equity shares of Rathi Steel and Power Limited on the open market, demonstrating its reinvigorated trust for the business. The deal, which was completed on March 21, 2025, increases PCR Holdings' stake in voting shares from 25.23% to 25.28%. The regulatory filing states that 15.05 lakh PCR Holdings' optionally convertible redeemable preference shares (OCRPS), which have the potential to eventually convert into 13 lakh equity shares, are also taken into consideration in this transaction.

India's Rathi Steel and Power Limited (RSPL) recently released its financial performance for the third quarter in FY25 where its net sales increased by 3.2% to ₹104.43 crore vis-a-vis the previous year. On the other hand, the company's net profit decreased by 32%, standing at ₹0.79 crore in Q3FY25. Combined net sales from April to December 2024 were recorded at ₹353.59 crore, lower by 6% compared to the 9MFY24 period. Despite the further decline in revenue, net profit remarkably increased to 199% at ₹10.16 crore, demonstrating the company's increased focus on cost efficiency.

RSPL has taken major steps after receiving approval from the Bureau Of Indian Standards (BIS) permitting them to use its standard mark on SS 550 Reinforcement Bars with a diameter measuring 32 mm. This product is marketed under the brand name RAPL and with certification effective until 1st February 2026, RSPL is ensured that its manufacturing and testing sites meet BIS requirements for stiffened Deformed Stainless Steel Wires and Bars meant for concrete strengthening. This certificate permits the company to produce reinforcing bars as per the increasing requirements of the construction and infrastructure industry. RSPL is striving to obtain certifications for more diameters and sizes, broadening its scope and product range.

To consolidate its position in the market, RSPL intends to invest nearly 50 crores to develop a forward integration facility at the Ghaziabad plant which will physically restrain the company from confining business opportunities. With this facility, the company will be able to transform wire rods into marketed items like bars and wires for the automotive, electric vehicle, defence, solar, engineering, and even consumer sectors. The increase of these industrial products and services will improve the company's capacity utilization and production efficiency while granting them a bigger portion of the rapidly growing industrial market.

The ownership structure of the listed company as at December 2024 indicates that there is significant promoter's goodwill as they have a stake of 40.32%. Foreign Institutional Investors (FIIs) account for 8.94%, while Domestic Institutional Investors (DIIs) have 2.53%. 48.22% is held by the general public. Multibagger returns of over 700% in the last five years served as an RSPL stock, further highlighting strong market performance and investor confidence.

Founded in 1971, Rathi Steel and Power Limited is engaged in the manufacturing and trading of stainless steel products wire rods, stainless steel sheets, and reinforcement bars that find application in construction, engineering, and domestic industries. The company has a plant in Ghaziabad, Uttar Pradesh, where it has an annual rolling capacity of 200,000 tons and a steel melting shop having a capacity of over 90,000 tons of stainless steel billets per year.

With the new BIS certification, an expansion into value-added products, and a strong balance sheet, RSPL is aggressively pursuing its vision of being a top steel manufacturer.