Rain Industries Limited

RAIN Industries concluded Q1 2025 with a Total Recordable Incident Rate (TRIR) of 0.06, stemming from one unusual office accident unrelated to operations. This achievement underscores the company's commitment to safety, prompting a comprehensive review across global offices to prevent similar occurrences. Management emphasized that safety is a continuous journey, shaped by awareness and the environment, reinforcing their dedication to maintaining an industry-leading safety standard.

For Q1 2025, Rain Industries reported a consolidated net revenue of 37.46 billion Rupees, an increase of 0.89 billion Rupees (2.43% YoY) from 36.57 billion Rupees in Q1 2024. The company achieved an Adjusted EBITDA of 4.34 billion Rupees, which slightly improved from Q4 2024 results and exceeded Q1 2024 performance. This consolidated growth was primarily driven by a 2.65 billion Rupees revenue increase in the Carbon segment, partially offset by reductions in the Advanced Materials (0.97 billion Rupees) and Cement (0.79 billion Rupees) segments.

The Carbon segment's revenue increased by 10.8% YoY to 27.34 billion Rupees in Q1 2025, with Adjusted EBITDA rising by 1.63 billion Rupees YoY. This growth was fueled by a significant surge in China's green petroleum coke market, leading to sharply rising CPC prices, and the strategic reintroduction of U.S.-produced CPC into India after a six-year gap. While CPC sales volumes declined 7% QoQ due to shipment timing, and overall Carbon segment volumes saw a modest 4% QoQ decline, the company anticipates reasonable growth in CPC sales volumes throughout 2025, supported by increased production capacity at its Indian vertical shaft calciner plant.

The Advanced Materials segment experienced a revenue decrease of 11.9% YoY to 7.24 billion Rupees in Q1 2025, with Adjusted EBITDA declining by 432 million Rupees YoY. This was primarily due to a 13% decline in segment volumes and margin pressure from raw material shortages and elevated costs in Europe. Despite these headwinds, the HHCR plant in Germany successfully completed routine maintenance in March, positioning it for increased production levels in Q2 2025. Efficiency improvements from recent technical innovations have also helped lower HHCR operating costs.

The Cement segment faced a challenging Q1 2025, with revenue declining by 21.5% YoY and Adjusted EBITDA experiencing a downturn of 108 million Rupees. This was attributed to a 13.4% fall in volumes and a 9.4% reduction in realizations, primarily due to market consolidation by national players. However, the outlook for 2025 is positive, with India's cement industry projected to grow by approximately 8%, driven by increasing construction activity and government infrastructure investments, and non-residential construction starts expected to grow by 3.6%.

As of Q1 2025, Rain Industries reported a gross debt of 989 million US dollars, including 184 million US dollars in working capital debt, leading to a net debt of 854 million US dollars. With an LTM EBITDA of 190 million US dollars, the net debt to EBITDA ratio stood at 4.5x, which the company aims to gradually reduce to 3.0x in the coming quarters^⏳. The company maintained strong liquidity with 278 million US dollars, comprising 120 million US dollars in cash and 158 million US dollars in undrawn credit facilities, and successfully repaid 44 million US dollars of Senior Secured Notes due in April 2025.

Rain Industries is actively realigning raw materials to enhance margins and bolster profitability, leveraging the relief granted by CAQM in India, which lifted import restrictions after six years. This has reinvigorated operational efficiencies and strengthened the global blend strategy. Looking beyond 2025, the company is excited about its new research and development laboratory and demonstration plant in Canada for Energy Storage Materials and Battery Anode Materials, positioning itself as a key player in the rapidly expanding EV and battery markets.