RINL Returns to Cash Profit as Operational Revival Gains Momentum

Rashtriya Ispat Nigam Limited (RINL), the corporate entity operating the Visakhapatnam Steel Plant, has reported a notable operational and financial recovery, signalling a major turnaround for the state-owned steel producer. The improvement comes after sustained financial support from the central government and a structured revival plan aimed at stabilising operations and restoring production capacity.

According to officials, the company posted a cash profit of around Rs 54 crore in January 2026, marking a significant shift from the cash loss of approximately Rs 486 crore recorded in September 2024. Cash profit refers to the surplus generated after covering all cash operating expenses while excluding non-cash items such as depreciation.

The revival has been supported by improved production levels and stronger sales realisation. RINL reported total income of about Rs 2,180 crore during January, reflecting the gradual recovery of its operational strength. A key milestone in the turnaround was the restoration of all three blast furnaces at the Visakhapatnam facility. The second blast furnace resumed operations in October 2024, while the third furnace was restarted in June 2025.

Following the restart of the furnaces, production levels improved significantly. Hot metal production increased from roughly 10,146 tonnes per day in the second quarter of FY25 to around 19,115 tonnes per day in January 2026. Capacity utilisation also improved sharply from nearly 49 per cent to about 93 per cent during the same period.

Operational efficiency indicators have also shown improvement. The overall fuel rate declined to about 539 kilograms per tonne of hot metal, while the coke rate fell to roughly 368 kilograms per tonne. Increased Pulverised Coal Injection usage has helped reduce production costs and improve energy efficiency.

The revival followed the approval of a financial support package by the Cabinet Committee on Economic Affairs in January 2025. The package included equity infusion and conversion of working capital loans into preference share capital, enabling the company to stabilise its balance sheet and maintain uninterrupted raw material supply.

Industry observers note that the turnaround of RINL is significant for India’s steel sector as the Visakhapatnam Steel Plant plays an important role in infrastructure and construction supply chains.