RHI Magnesita missed its FY26 margin target. It's guiding 13% for FY27.
Adjusted EBITDA margin came in at 11.9% versus a 13-14% guide. A large new order and price hikes are supposed to fix it.
— 1 earlier story on RHI Magnesita India Ltd. →What's new
- FY26 adjusted EBITDA margin was 11.9%, missing the 13-14% target.
- Raw material inflation, pricing pressure, and freight costs caused the miss.
- FY27 guidance: 13% EBITDA margin, 8-9% volume growth, and 1-3% price increases.
Why this matters
Missing its own guidance by over a full percentage point erodes credibility. The recovery plan depends on raising prices in a market growing just 6-7%, while absorbing costs on a new large order.
What we're watching
- Whether the 1-3% price increases stick in a competitive market.
- Execution on the 30,000-ton Coke Oven order over the next 18 months.
- Raw material cost trends and their impact on the planned margin recovery.
The full read
RHI Magnesita delivered an adjusted EBITDA margin of 11.9% in FY26, missing its own 13-14% target. Management blamed raw material inflation, pricing pressure, and geopolitical freight shocks. For FY27, the story shifts to recovery. Management is guiding for a 13% margin, hinging on three bets: 50% cost savings from in-house mining, 1-3% price increases effective May-June, and a new 30,000-ton Coke Oven order from an integrated steel major, locked in for 18 months. That order is the linchpin, providing the fixed-cost absorption needed to hit the target. Volume growth is guided at 8-9%, which would outpace the market's 6-7% expansion. The margin miss was costly for credibility. The next test is whether the recovery plan holds.
Questions answered
- Why did RHI Magnesita miss its FY26 margin target?
- The company cited raw material inflation, pricing pressure, and geopolitical disruptions that increased freight costs. The combination pushed adjusted EBITDA margin to 11.9%, against the guided range of 13-14%.
- What is the new order management is counting on for FY27?
- It secured a 30,000-ton Coke Oven order from an integrated steel major, locked in for 18 months. This provides fixed-cost absorption, which is key to the margin recovery plan.
- How does the company plan to achieve the 13% margin in FY27?
- Three levers: a 50% cost advantage from in-house mining, planned price increases of 1-3% effective May-June, and the volume growth from the new Coke Oven order. The margin guidance assumes all three hold.
- What is the expected volume growth for FY27?
- Management guided for 8-9% volume growth, which it says will outpace the projected market growth of 6-7%.
Story so far
All notes on RHIM →- 30 May 2026 · 12:05 PM IST RHI Magnesita missed its FY26 margin target. It's guiding 13% for FY27.
- 1d ago RHI Magnesita flips to net cash after record operating cash flow