Multibagger Small-Cap Stock Sees 7% Increase, Five-Year Returns Surpass 800%

Rathi Steel and Power Posts Strong Q4 Results, Stock Rallies 7%

Rathi Steel and Power, a leading steel and power company, witnessed a significant surge in its stock price on the BSE on Monday, following the announcement of its strong Q4 results for fiscal year 2026 (Q4 FY26). The company's stock opened at an intraday high of ₹20.63 apiece on June 1, compared to the previous close of ₹18.76 on Friday last week.

The company's Q4 FY26 results reflect a robust financial performance, with total income standing at ₹244.57 crore, representing a year-on-year (YoY) growth of 63.34% compared to Q4 FY25. Operating performance also improved, with EBITDA rising 22.72% YoY to ₹9.89 crore in the March quarter FY26. Profit after tax (PAT) nearly doubled, surging 95.84% YoY to ₹7.45 crore. Consequently, the PAT margin improved by 51 basis points to 3.04%, indicating enhanced operational efficiency and better earnings quality.

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For the full year, total income surged 42% to ₹716.49 crore in FY26, as compared to ₹505.43 crore in FY25. EBITDA and PAT also witnessed a significant rise of 24% and 9% in FY26. The company's strong performance is attributed to its focus on strategic initiatives to improve product mix and efficiencies, healthy demand for its products, and ramp-up of operations of the TMT bar mill.

Rathi Steel and Power's share price trend has been largely negative in the near term, with the stock falling over 6% in a month and 9.57% in three months. On a year-to-date (YTD) basis, the stock has declined 27.37%. However, looking at the broader level, the stock has impressed long-term investors with multibagger returns of 845% in five years and 548% in ten years.