Rajratan Global Wire (517522) Q2 25/26 earnings summary

Executive summary

• Achieved 20% revenue growth year-over-year in Q2 FY26, with record quarterly sales of over 32,000 tons and strong volume growth in India and Thailand; Chennai plant approvals and ramp-up supported expansion and profitability within 12 months.

• EBITDA for the quarter reached nearly INR 40 crores, up 5.6% year-over-year and 29.3% sequentially, reflecting operational improvements and higher sales volumes; net profit rose 7.9% year-over-year and 52% sequentially.

• Export volumes remain robust, with 2,200-2,300 tons/month shipped outside India and Thailand, targeting 40,000 tons in exports for FY 2027.

• Thailand operations remained profitable and competitive despite Chinese competition, with 91% capacity utilisation and a focus on higher-margin multinational customers.

• Unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025, were approved by the Board and reviewed by auditors, with no material misstatements noted.

Financial highlights

• Q2 FY26 consolidated revenue: ₹29,417 lakhs, up 20% year-over-year; EBITDA: ₹4,002 lakhs, up 6% year-over-year; PAT: ₹2,055 lakhs, up 8% year-over-year.

• Sales volume: India 20,816 MT (+21% YoY), Thailand 12,071 MT (+5% YoY), total 32,887 MT (+15% YoY); bead wire sales reached a record 29,003 MT.

• Realizations increased by INR 6-7/kg in India and THB 10/kg in Thailand, with gross margins considered sustainable barring raw material price volatility.

• Other expenses rose 60% year-over-year, mainly due to Chennai plant operationalization and higher freight and power costs; these are expected to normalize as Chennai volumes ramp up.

• Consolidated net profit for Q2 FY26 was Rs. 1,248 lakhs, compared to Rs. 1,061 lakhs in Q1 FY26 and Rs. 1,481 lakhs in Q2 FY25.

Outlook and guidance

• Confident of improved performance in coming quarters, with plans to reach 180,000 tons of bead wire and 2,000 crore topline in three years.

• Chennai phase two expansion underway, with capacity to reach 60,000 tons and equipment to be installed over the next year.

• Wire rope pilot project (10,000 tons/year) at Pithampur to start production in the first quarter of next financial year, with INR 70 crore total investment planned.

• GST rationalisation on tyres and automobiles could further boost demand.

• The company completed the trial run of its Greenfield Project at Chennai in April 2025, with all related expenses charged to the half-year results.