Rajratan Global Wire reported a 24% year-on-year revenue jump to ₹1,156.50 crore for FY26, driven by exports and its Chennai facility. Net profit rose 19% to ₹70.11 crore. However, margins faced pressure from rising steel costs. The company announced a ₹2 per share final dividend.
Rajratan Global Wire
Revenue from operations ₹1,156.50 crore (1,15,650 lakh); PAT ₹70.11 crore (7,011 lakh)
Reader Takeaway: Strong revenue growth driven by exports; margin pressure from raw material costs.
What just happened
Rajratan Global Wire reported a 24% year-on-year increase in revenue from operations for FY26, reaching ₹1,156.50 crore. Profit After Tax (PAT) grew by 19% to ₹70.11 crore. EBITDA saw a 9% increase to ₹139.95 crore.
The company's installed capacity stands at 1,92,000 Tonnes. Despite the strong top-line growth, the Profit After Tax (PAT) margin contracted by 20 basis points to 6.1% due to higher raw material costs, particularly steel, which could not be fully passed on.
Why this matters
The significant revenue growth indicates strong demand and successful capacity utilization, especially from exports and the Chennai facility. However, the margin contraction highlights the impact of input cost volatility on profitability. Investors will be watching how the company manages these cost pressures going forward.
The backstory
In FY25, Rajratan Global Wire had reported revenue of ₹935.25 crore and PAT of ₹58.80 crore. The company has been focused on capacity expansion, with its Chennai facility contributing to the recent growth.
What changes now
Management is shifting its strategy from aggressive expansion to 'structural consolidation cum compounding'. Initiatives like 'Project Uplift' and 'Project 162K' aim to achieve ₹2,000 crore in revenue and 14% EBITDA margins within five years. The Board has recommended a final dividend of ₹2 per equity share for FY26.
Risks to watch
Margin pressure due to raw material cost volatility is a key concern, as seen by the 20 bps drop in PAT margin. Rising debt, with Debt/EBITDA at 2.31x, is another watch point, influenced by working capital needs and ongoing capital expenditure.
Peer comparison
Rajratan Global Wire operates in the steel wire manufacturing sector. While specific peer financial data for FY26 isn't immediately available, the company's focus on exports and capacity utilization is a competitive factor.
Context metrics (time-bound)
For FY26, Revenue stood at ₹1,156.50 crore, EBITDA at ₹139.95 crore, and PAT at ₹70.11 crore. Return on Capital Employed (RoCE) was 13.53% in FY26, down from 14.72% in FY25. Debt/EBITDA increased to 2.31x in FY26.
What to track next
Investors should monitor the company's ability to navigate raw material price fluctuations, manage its debt levels, and achieve its strategic targets of ₹2,000 crore revenue and 14% EBITDA margins.