Rain Industries soars after posting Q2 profit rebound

Rain Industries surged 9.36% to Rs 166.45 after the company posted a strong turnaround in its consolidated financial performance for the quarter ended June 2025 (Q2 FY25).

The company reported a net profit of Rs 60.70 crore in Q2 FY25, compared to a loss of Rs 77.88 crore in Q2 FY24. Revenue from operations rose 7.5% to Rs 4,401.38 crore from Rs 4,094.15 crore a year earlier.

Rain Industries swung to a profit before tax (PBT) of Rs 203.59 crore from a loss of Rs 2.23 crore last year.

Total expenditure rose modestly by 1.27% to Rs 3,772.13 crore. While depreciation costs increased by 21.24% to Rs 224.93 crore, interest costs declined slightly by 6.71% to Rs 228.25 crore, helping support the bottom line.

Despite the profit recovery, consolidated net operating cash flows turned negative, with an outflow of Rs 196.74 crore in H1 FY25, compared to an inflow of Rs 704.41 crore in the same period last year.

In its latest business outlook, Rain Industries said it continues to face carbon raw material constraints, although some positive movement has been observed. It is actively exploring alternative sourcing options to improve capacity utilisation.

On tariff impacts, the company noted no material disruptions as of now but is closely monitoring evolving developments. Meanwhile, Rain Industries reaffirmed its commitment to cost savings, stating that ongoing improvements in operations are helping it focus on cost-efficiency measures.

The company is also prioritising ESG compliance as it seeks to build sustainable operations, and is leveraging its proprietary R&D capabilities in distillation and calcination to develop raw materials tailored for emerging markets.

Additionally, Rain Industries is staying alert for opportunities in debt optimisation, aiming to reduce interest costs by tracking market conditions proactively.

Rain Industries is a vertically integrated global manufacturer engaged in the production of a diversified portfolio of products that serve as essential raw materials for a wide range of everyday applications. The company operates across three key business segments: carbon, advanced materials, and cement.

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