Stock Below Rs30: This Small-Cap Steel Company Announces Q1FY27 Results, PAT Surges 315.7% YoY to Rs 3.16 Crore, Capacity Expansion Approved
Join Us
Follow Us
The company’s board has approved an expansion of its Kadi manufacturing capacity from 45,000 MT to 75,000 MT per annum.
✨ Key Takeaways
Rhetan TMT Limited reported a sharp improvement in profitability in the first quarter of FY27, with Profit After Tax (PAT) rising 315.7 per cent year-on-year to Rs 3.16 crore from Rs 0.76 crore in Q1FY26. Revenue from operations, however, declined 19.3 per cent YoY to Rs 4.06 crore from Rs 5.04 crore.
EBITDA increased 195.5 per cent YoY to Rs 3.79 crore from Rs 1.28 crore. The EBITDA margin stood at 93.3 per cent in Q1FY27, compared with 25.5 per cent in the year-ago quarter. Profit Before Tax (PBT) also jumped 335.5 per cent YoY to Rs 3.31 crore from Rs 0.76 crore. Earnings Per Share (EPS) stood at Rs 0.04 during the quarter.
The company’s board has approved an expansion of its Kadi manufacturing capacity from 45,000 MT to 75,000 MT per annum. The expansion is aimed at strengthening its manufacturing capabilities and enabling the company to cater to growing opportunities in the TMT steel segment.
Rhetan TMT has also commissioned and successfully tested a 1 MW captive ground-mounted Solar power project. Commercial power generation is expected to commence shortly. The project is expected to improve energy efficiency, optimise power costs and support the company’s long-term cost competitiveness.
The company has received BIS certification for premium-grade Fe500D, Fe550 and Fe550D TMT bars. The certifications expand its value-added product portfolio and allow Rhetan TMT to target government and PSU infrastructure projects, while strengthening its presence in the premium steel segment.
Shalin Shah, Managing Director of Rhetan TMT, said the company delivered a positive start to FY27 with a significant improvement in profitability. He added that the capacity expansion and operational initiatives are intended to strengthen the company’s manufacturing base and help it capture emerging opportunities in the TMT steel market.
Rhetan TMT manufactures TMT and round bars for the infrastructure, Construction and Real Estate sectors. The company has more than four decades of industry experience and operates a fully mechanised rolling mill at Kadi, Gujarat, using thermo-mechanical treatment technology. It continues to focus on expanding manufacturing capabilities, improving operational efficiency and supporting India’s infrastructure and construction requirements.
Disclaimer: The article is for informational purposes only and not investment advice.