Rain Industries reports strong Q3 2025 performance, eyes strategic expansions

Rain Industries Limited reported a robust third-quarter 2025 with consolidated net revenue of INR 44.35 bn, a 14% increase from Q3 2024, and adjusted EBITDA of INR 6.48 bn, up 122% from Q3 2024. This growth was primarily fueled by the Carbon segment, which saw a 2.4% revenue increase due to higher distillation business volumes and a favorable product mix. The Advanced Materials segment also contributed with a 9% revenue increase and 16% EBITDA growth, benefiting from seasonal products and naphthalene derivates. The Cement segment experienced a 1.3% revenue decrease in Q3 2025 due to monsoon conditions but anticipates recovery with GST rate reductions.

The company announced a brownfield expansion for its Cement segment in Ramapuram, Telangana, increasing clinker capacity from 1.0 to 2.5 million tonnes and cement capacity from 1.5 to 3.8 million tonnes. This expansion, costing INR 7,570 million, will be funded mainly through internal accruals and includes a 7 MW Waste Heat Recovery power plant. Operations are expected to commence in the second half of 2027. Additionally, a 2 MW solar power plant at Unit-I is scheduled for commissioning by February 28, 2026, with an investment of INR 7 crores.

Strategic initiatives include a joint development agreement with Northern Graphite to develop alternative materials for the energy storage market, leveraging RAIN's LIONCOAT® carbon coating technology. The estimated development cost of CAD 3.1 million will be partially funded by a CAD 0.9 million grant. The company also launched a Meso-phase Carbon Micro-Bead product in North America, enhancing its presence in the rechargeable battery sector. Rain Industries aims to optimize debt and capital structure while closely monitoring market conditions.