Precision Wires India shares hit a fresh record high, surging 20% on Friday alongside heavy trading volume. The move follows strong financial performance in Q1 FY27 and the company's ongoing expansion projects, including a new copper recycling plant. Investors are now watching the company’s capital-raising plans and the execution of its major capacity projects.
Precision Wires India shares rose 20% during Friday's trading session, reaching a new record high. This jump in price was supported by a massive spike in market activity, with nearly 8.79 million shares changing hands across the National Stock Exchange and the Bombay Stock Exchange.
The stock's strong performance reflects recent financial growth. In the first quarter of fiscal year 2027, the company reported a 71.5% year-on-year rise in net profit to ₹46.45 crore. Revenue for the same period increased by 60.4% to ₹1,770.48 crore. This growth is being driven by steady demand from key sectors, including power, automotive, and consumer durables, where the company supplies essential copper products.
A significant factor attracting investor attention is the company’s aggressive expansion strategy. A central part of this is a ₹188 crore investment in a copper recycling and refining plant located in Zaroli. By setting up facilities to produce copper cathodes from scrap, the company aims to move toward backward integration, which could help lower raw material costs and improve operational efficiency over the long term. Alongside this, the company is also proceeding with a modernization project at its Silvassa facility to increase production capacity.
To fund these growth initiatives and manage working capital, the company has announced plans to raise ₹150 crore through a preferential issue of Compulsory Convertible Debentures (CCDs). These are proposed to be converted into equity shares at a price of ₹400 each. Shareholders will vote on this proposal at an Extraordinary General Meeting (EGM) scheduled for September 5, 2026.
While the growth outlook appears positive, investors are monitoring several risks. The company’s primary raw material is copper, which is subject to global price volatility. To manage this, the company uses a conversion-based business model, where it passes price fluctuations on to customers to protect its profit margins. However, the successful execution of the new Zaroli project is critical, as any delays could impact the expected cost benefits. Furthermore, the conversion of the proposed debentures into equity will result in dilution for existing shareholders, a standard factor to consider when companies raise funds for expansion. The next major monitorables for investors will be the outcome of the upcoming EGM and updates on the project completion timelines.