Steel stock jumps 4% after company repays its loan and becomes debt-free

Synopsis: Rajputana Stainless Limited became debt-free by repaying ₹96.01 crore, strengthening its financial position, improving flexibility, and enabling future growth, expansion, and long-term value creation for stakeholders.

This Small-Cap Stock, engaged in manufacturing long and flat stainless steel products, supplying raw materials to industries like automotive, aerospace, oil and gas, jumped 3.55 percent after the company repaid its entire Rs. 96 crore loan and becomes a debt-free company.

With a market capitalization of Rs. 1,037.07 crores, the share of Rajputana Stainless Limited has reached an intraday high of Rs. 127 per equity share, rising nearly 3.55 percent from its previous day’s close price of Rs. 122.65. Since then, the stock has retreated and is currently trading at Rs. 124.10 per equity share. 

Reason Behind the Surge

Rajputana Stainless Limited has achieved an important milestone by becoming completely debt-free on April 8, 2026. The company repaid its total debt of about Rs. 96.01 crore, which included term loans, working capital loans, and unsecured borrowings. This step shows that the company has used its IPO funds properly and fulfilled its promises.

Becoming debt-free makes the company financially stronger and more stable. It improves its credit profile and gives it more flexibility to invest in new projects. Now, the company can focus on expanding its business, including setting up new production units, without the burden of loans.

Rajputana Stainless Limited is a manufacturer of different stainless-steel products used in many industries. With this achievement, the company is in a better position to grow, improve its operations, and create long-term value for its customers and stakeholders.

Company Overview

Rajputana Stainless Limited was incorporated in 1991 and is a company that manufactures long and flat stainless-steel products. It produces a wide range of items such as billets, forging ingots, rolled bars, flat products, and other related materials. The company offers more than 80 different grades of stainless steel to meet the needs of various industries.

Rajputana Stainless operates a large manufacturing facility in Kalol, Gujarat, equipped with modern machines for efficient production. As of September 2025, it had 408 employees, including skilled and unskilled workers, supporting its operations and growth.

Products Portfolio and Global Presence

The company mainly sells its products in India through direct sales and traders, and also exports to countries like the UAE, USA, Turkey, Kuwait, and Poland. Its products are used in industries such as automotive, aerospace, oil and gas, defense, and precision engineering. With its strong experience and infrastructure, the company supplies important raw materials for many industrial applications.

Recent Quarter Results

Coming into financial highlights, Rajputana Stainless Limited’s revenue has increased from Rs. 910 crore in FY24 to Rs. 932 crore in FY25, which has grown by 2.42 percent. The net profit has also grown by 25 percent from Rs. 32 crore in FY24 to Rs. 40 crore in FY25.

In the first half of FY26, the company reported revenue of Rs. 502 crore and a net profit of Rs. 24 crore. Rajputana Stainless Limited’s revenue and net profit have grown at a CAGR of 16.62 percent and 58.49 percent, respectively, over the last five years.

In terms of return ratios, the company’s ROCE and ROE stand at 31.6 percent and 30.1 percent, respectively. Rajputana Stainless Limited has an earnings per share (EPS) of Rs. 5.78, and its debt-to-equity ratio is 0.50x.

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