Rain Industries Limited (RAIN)
Micro CapChemicals stocks · Micro cap · NSE
RAIN is a vertically integrated global producer of essential raw materials across Carbon, Cement, and Advanced Materials segments. It converts oil refining and steel production by-products into high-value carbon-based products and operates cement plants in South India, serving global aluminium, graphite, specialty chemicals, and construction industries.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is acceptable, price trend is neutral, and recent execution is mixed.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Excellent · 100/100Rev +17% YoY · PAT +311% YoY · margin expansion · +14% QoQ · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹5,167 Cr | +17.4% | +14.3% |
| EBITDA | ₹964 Cr | +53.3% | +38.3% |
| Operating margin | 19.0% | +500 bps | +400 bps |
| PAT | ₹341 Cr | +310.8% | +115.8% |
| PAT margin | 6.6% | +471 bps | +311 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Q1 2026 saw strong revenue and EBITDA growth, up 20% and 65% YoY respectively, driven by Carbon and Advanced Materials segments. Cement revenue declined due to increased competition and higher operating costs. Adjusted Net Profit After Tax was ₹1.25 billion.
The company delivered robust Q1 2026 results, primarily driven by strong performance in its Carbon and Advanced Materials segments, benefiting from volume improvements, price increases, and cost savings. The Cement segment remains a drag due to competitive pressures. Management's focus on debt optimization and alternative raw material sources is positive, but raw material cost volatility remains a risk.
Revenue by Segment
Latest issuer-disclosed distribution across 3 reported categories.
Carbon Segment Performance
Revenue increase driven by volume improvements in Calcination due to strong demand and higher production, along with increased prices across major products.
Advanced Materials Segment Performance
Revenue increase driven by increased volumes in Chemical Intermediates and Resins, and finished product pricing increases related to reduced market supplies.
Aluminium Market Dynamics
Aluminium production disruptions in the Middle East are expected to drive capacity utilization in other markets, with smelters looking to accelerate new capacity additions.
Cost Savings Initiatives
Improved margins in Carbon and increased EBITDA in Advanced Materials were partly driven by cost savings initiatives implemented in 2025.
Carbon Capacity Utilization
Carbon segment saw higher production in Q1 2026 compared to ramping up of capacity utilization during Q1 2025.
Existing Capacities
The company has 2.4 million tonnes p.a. calcination capacity, 1.3 million tonnes p.a. coal tar distillation capacity, 0.5 million tonnes p.a. advanced materials capacity, and 4.0 million tonnes p.a. cement capacity.
Strong Aluminium Demand
LME aluminium price continues to hold, supported by growth in demand, with supply expected to be short for the next year or more.
Favorable Currency Movements
Appreciation of Euro and USD against the Indian Rupee supported revenue increases in Carbon and Advanced Materials segments.
Reduced Advanced Materials Supply
Finished product pricing increases in Advanced Materials were related to reduced supplies in the market.
Cement Segment Competition
Cement revenue decreased due to lower volumes resulting from increased competition in the South Indian market.
Increased Cement Operating Costs
Cement EBITDA decreased due to lower volumes and increased operating costs.
Raw Material Supply Disruptions
Aluminium production disruptions in the Middle East highlight potential raw material supply challenges, which the company aims to mitigate.
Raw Material Cost Volatility
Changes in raw material costs are an important factor that could cause results to differ materially from forward-looking statements.
Market Demand Fluctuations
Lower than expected demand for products is a risk that could impact future performance.
Competitive Pressures
Competitors' reactions to market conditions, as seen in the Cement segment, pose a risk to profitability.
Foreign Currency Exchange Rates
Economic conditions, including foreign currency exchange rates, are factors that could cause results to differ materially.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
The earnings presentation explicitly highlights Q1 2026 performance against Q1 2025 for key financial metrics and segment-wise revenue and EBITDA, indicating a primary year-over-year comparison.
Revenue from Operations
Revenue from Operations increased to ₹45.21 billion in Q1 2026, a 20% increase compared to Q1 2025.
Adjusted EBITDA
Adjusted EBITDA grew to ₹7.15 billion in Q1 2026, marking a 65% increase from Q1 2025.
Adjusted EBITDA Margin
Adjusted EBITDA Margin improved to 15.8% in Q1 2026, up from 11.5% in Q1 2025.
Carbon Segment Volumes
Carbon volumes were 659 thousand tonnes in Q1 2026, up from 597 thousand tonnes in Q1 2025.
Strengthening Business Model
Management is focused on transforming with purpose by strengthening its business model across Carbon, Advanced Materials, and Cement segments.
Sustainable Performance through Raw Material Diversification
Developing alternative sources of raw materials to achieve higher capacity utilization and mitigate supply disruptions in the Middle East.
R&D for Emerging Markets
Leveraging proprietary know-how in Distillation and Calcination for developing raw materials for emerging markets of BAM and ESM.
Debt Optimization
Staying prepared and watching markets closely for opportunities to optimize interest costs.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Net Debt to EBITDA | 2.85x (Mar 2026) | Further reduction in the Net Debt to EBITDA ratio, indicating improved financial leverage. |
| Adjusted EBITDA Margin | 15.8% (Q1 2026) | Sustained or improved margins, especially given volatile input costs and competitive pressures. |
| Cement Segment Performance | Revenue down, EBITDA down (Q1 2026) | Signs of recovery in volumes and profitability in the Cement segment amidst increased competition and operating costs. |
| Raw Material Sourcing Initiatives | Developing alternative sources | Concrete progress and impact of developing alternative raw material sources to mitigate supply disruptions. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
56NeutralSMA20 -7.5% / mo · MACD +
Technical chart
RAINdaily · 1Y · AUTO+61.4%Daily technical trend read
Mixed signalsSignals are conflicting — long-term uptrend intact. RSI 56. Wait for confirmation.
- Price above SMA200 (long-term uptrend) but mid-term MAs not aligned.
- SMA20 falling (~8.1% over last month) — short-term momentum negative.
- RSI(14) at 56 — rising, no extreme reading.
- MACD above signal but histogram contracting — bullish momentum cooling.
- 14% off 52W high · 116% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation & score drivers
U-Score 37 · WATCHLIST · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 37 · WATCHLIST · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
WATCHLISTWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- FCF yield is supportive at 8.8%.
- Cash flow contributes 8/10 to the score.
- Valuation contributes 16/30 to the score.
Main drags
- Fair-value margin of safety is negative at -1106.3%.
- Quality is weaker at 0/20; verify the latest quarterly trend.
- Growth is weaker at 5/25; verify the latest quarterly trend.
Cyclical valuation: normalized earnings, not just trailing PE
Cyclical companies can look cheapest near peak profits, so IndiaPulse flags value-trap risk separately.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: -3 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 66th percentile of the scored universe and 47th percentile within Chemicals. Main check: balance sheet trust is weak at 53/100.
Healthy Trust Lite: Promoter pledge is zero. Key concern: Debt/equity is 1.35.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Chemicals: 47th pctile, median 73 · Micro: 46th pctile, median 73
148 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is 8.8%.
- ▸11 years of positive FCF.
- ▸4/4 latest quarters had positive YoY revenue growth.
Trust risks
- ▸Debt/equity is 1.35.
- ▸ROE is low at 0.6%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 13.50
- P/B
- 0.91
- EV/EBITDA
- 4.79
- Market Cap
- 7256.00Cr
Profitability
- ROE
- 0.60%
- ROCE
- 8.26%
- ROA
- 2.93%
- Dividend Y
- 0.46%
Growth (CAGR)
- Revenue 5Y
- 10.00%
- EPS 5Y
- -40.00%
- Revenue 3Y
- -7.00%
- EPS 3Y
- -69.00%
Balance Sheet
- Debt/Equity
- 1.35
- Interest Coverage
- 2.91×
- Altman Z
- 2.12
- Book Value
- 238.00
Cash Flow
- FCF Yield
- 8.82%
- FCF Positive Y
- 11/5
- OCF
- 897.00 Cr
- EPS TTM
- 15.97
Shareholding
- Promoter Hold
- 41.35%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 76%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable names in Chemicals, ranked by similarity
Peers
Business-comparable names in Chemicals, ranked by similarity
Peers
Business-comparable peers in Chemicals — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.