Visakhapatnam Steel Plant posts ₹54 crore cash profit in January, reverses losses

In what officials described as a ‘structured revival backed by calibrated financial intervention’, Rashtriya Ispat Nigam Limited, the corporate entity of the Visakhapatnam Steel Plant, has reported a marked operational and financial recovery, according to a detailed presentation made recently to Chief Minister N. Chandrababu Naidu.

According to official sources, RINL has returned to cash profitability following sustained financial support from the Centre. The company posted a cash profit of ₹54 crore in January 2026, a sharp turnaround from a cash loss of ₹486 crore in September 2024. Cash profit refers to the actual surplus generated after meeting all cash operating expenses, excluding non cash charges such as depreciation. Total income in January stood at ₹2,180 crore, reflecting improved production levels and better sales realisation.

Officials informed the Chief Minister that all three blast furnaces are now operational. The second furnace was restarted on October 28, 2024, and the third on June 27, 2025. Hot metal production rose from 10,146 tonnes per day in the second quarter of FY25 to 19,115 tonnes per day in January 2026. Capacity utilisation improved from 49% to 93% during the same period. Operational efficiencies also strengthened, with the overall fuel rate declining to 539 kg per tonne of hot metal and the coke rate to 368 kg per tonne of hot metal. Pulverised Coal Injection increased to 142 kg per tonne of hot metal, contributing to lower input costs.

Restoration of all three blast furnaces proved to be the inflection point, an official familiar with the presentation said, noting that techno economic parameters began improving steadily once capacity utilisation crossed 90%.

The turnaround followed Phase I approval by the Cabinet Committee on Economic Affairs on January 16, 2025. Under this package, ₹10,300 crore was infused as equity, while ₹1,140 crore of working capital loans was converted into 7% non cumulative preference share capital. A second tranche of ₹8,097 crore is under consideration by the Finance Ministry. Officials said the financial backing helped the company avoid classification as a non performing asset, clear GST dues, reduce high cost borrowings and ensure uninterrupted supply of raw materials.

Credit rating agency ICRA upgraded RINL’s long term rating to BB+ with a stable outlook. The State Bank of India reduced its lending rate to 8.70% from October 2025. Bill discounting rates were brought down to 7.62% by SBI and 7.1% by ICICI Bank, easing liquidity pressures.

RINL has also sought preferential procurement support from the Andhra Pradesh government, particularly for its High Strength Corrosion Resistant Steel in infrastructure projects, along with minimum procurement stipulations to stabilise order flows.