Small-cap Stock Below ₹50 Demonstrates Resilience Amidst Market Downturn

Market Resilience: Rathi Steel and Power Shares Rise Despite Broader Market Crash

On Thursday, April 2, the small-cap stock Rathi Steel and Power showed remarkable resilience, bucking the trend of the broader stock market crash. Despite the challenging global conditions, the company reported a sharp rise in revenue for the March quarter (Q4) and the full financial year (FY26), reflecting strong growth momentum.

The stock gained 1.35% to reach a day's high of ₹15 on the BSE. In contrast, the Sensex and Nifty 50 suffered massive losses of over 2% each in morning deals on Thursday. The BSE Sensex plunged over 1,500 points, or 2%, to an intraday low of 71,546, while the NSE barometer Nifty 50 crashed 500 points, or 2%, to the day's low of 22,183.

Despite the recent pressure, the stock has given multibagger returns in the long term, rallying 603% in 5 years. However, it has shed 54% in the last 1 year, and has also been under pressure in recent times, declining 46% in the last 3 months and 30% in the past 1 month.

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Rathi Steel Q4 Results 2026 The company recorded revenue of ₹244.8 crore in Q4 FY26, marking a 63.5% year-on-year increase. For the full financial year FY26, revenue stood at ₹716.7 crore, compared with ₹505.43 crore in FY25, translating into a 41.8% growth.

The company's robust quarterly performance came despite headwinds from ongoing geopolitical developments, which impacted fuel costs, global trade flows, and broader macroeconomic conditions. Rathi Steel highlighted that it remains uniquely positioned in the stainless steel wire rod segment, being the only Indian company with direct charging capabilities for rolling stainless steel wire rods.

This process allows hot stainless steel billets to be directly fed into rolling mills, reducing fuel consumption required for reheating. The company noted that rising fuel prices, driven by energy disruptions linked to the Iran war, have had a higher impact on its TMT business, which consumes larger quantities of fuel. However, it said steps are being taken to mitigate these pressures.

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Rathi Steel also emphasized that its diversified product portfolio, comprising stainless steel and TMT products, provides operational flexibility and helps cater to a wider customer base while optimising realisations. Improved operational flexibility has also led to higher capacity utilisation levels in the rolling division, supporting better throughput and scalability.

Commenting on the performance, Udit Rathi, Promoter of Rathi Steel and Power Limited, said that the company's strong finish to the year was driven by the collective efforts of its team and continued focus on quality and operational excellence. He expressed optimism about the strong fundamentals of the Indian economy, with a strong leadership and foundation in place.