Veteran investor Dolly Khanna appears to be making a calculated comeback in Rain Industries, a stock where she had earlier generated multibagger returns after buying during a deep cyclical downturn. Her fresh entry of around 1.06% stake, valued at nearly ₹43 crore, has once again put the spotlight on the company and on the possibility of a new cyclical uptrend emerging in the business.
The timing of the re-entry is what has caught the market’s attention. Rain Industries had been under pressure for several years due to weak global commodity cycles, high input costs, and debt-related concerns. However, the company’s latest financial performance suggests that the worst may be behind it. The company has returned to profitability, aided by improving operating conditions across its carbon and chemicals businesses.
Rain Industries is one of the world’s leading producers of Calcined Petroleum Coke (CPC) and Coal Tar Pitch (CTP), products that are critical raw materials for the aluminium industry. The company operates globally through three major business segments; carbon, chemicals, and cement. Its carbon business remains the largest contributor, with manufacturing facilities spread across India, Europe, and North America. The company has annual CPC production capacity of about 2.4 million tonnes and tar distillation capacity of around 1.3 million tonnes.
The investment thesis around Rain Industries has always been cyclical in nature. The business is heavily linked to aluminium demand and the spread between raw material prices and finished CPC realizations. During downturns, margins compress sharply, but when the cycle turns favorable, profitability can improve dramatically. Market participants tracking the company believe that this margin cycle may now be turning positive once again. Discussions among investors point toward improving CPC pricing, easing raw material pressures, and strong utilization levels at the company’s CPC facilities.
One of the biggest concerns surrounding Rain Industries over the past few years was its debt burden. However, the latest updates indicate that the financial situation is stabilizing. The company reportedly has liquidity of around USD 362 million, while major term debt maturities are pushed out until October 2028, reducing near-term refinancing risk. This provides the company with breathing room to benefit from a cyclical recovery and improve cash flows over the next few years.
Financially, the latest quarterly numbers indicate a visible improvement. In Q3 FY26, Rain Industries reported revenue growth of around 17% year-on-year and posted a profit after tax compared to losses in the corresponding previous-year quarter. Revenue stood above ₹4,300 crore while profitability turned positive, reflecting recovery in operating performance.
The company’s EBITDA performance has also shown improvement compared to the weak phase witnessed during the commodity downturn. While margins are still below peak-cycle levels, investors are beginning to see signs of normalization in spreads and operating leverage. Industry observers believe that if aluminium demand remains firm globally and CPC pricing stays stable, Rain Industries could witness a meaningful earnings recovery over the next few years.
What makes the situation particularly interesting is the risk-reward equation. The stock had corrected significantly from earlier highs and was trading near cyclical lows before the recent recovery. This has led some investors to view it as a “low-risk, high-reward cyclical opportunity,” especially if the earnings cycle improves meaningfully. That seems to be the bet Dolly Khanna is taking once again.
Her investment style has often revolved around spotting turnaround opportunities and entering businesses before the broader market recognizes the change in fundamentals. Her return to Rain Industries may therefore be seen by many investors as a signal that the cycle could finally be turning favorable for the company again.