Rajratan Global Wire (517522) Q4 25/26 earnings summary

Executive summary

• Achieved record sales volume, with year-over-year growth of 18%-19% and highest-ever quarterly and annual sales tonnage across three locations.

• Operating revenue for Q4 FY26 rose 25% year-over-year to Rs 31,429 Lakhs, with full-year revenue up 24%.

• EBITDA margin declined in Q4 due to a 20% increase in raw material and energy costs, but price hikes have since been implemented.

• Market share in the tire sector in India rebounded to 42%-43%, driven by robust tyre offtake and increased vehicle exports.

• Audited standalone and consolidated financial results for FY 2025-26 were approved with unmodified opinions from statutory auditors.

Financial highlights

• Consolidated revenue from operations for FY 2025-26 was Rs. 1,15,650 lakhs, up from Rs. 93,525 lakhs year-over-year.

• Consolidated net profit for FY 2025-26 was Rs. 7,011 lakhs, up 19% year-over-year.

• Q4 FY26 EBITDA: Rs 2,860 Lakhs, down 14% year-over-year; full-year EBITDA: Rs 13,995 Lakhs, up 10%.

• EBITDA margin for Q4 FY26 fell to 9.1% from 13.3% year-over-year; full-year: 12.1% (down 150 bps).

• Other income rose due to foreign currency gains from dollar and Thai baht appreciation.

Outlook and guidance

• Targeting 17%-18% volume growth for FY 2027, with consolidated sales projected at 155,000 tons if global conditions remain stable.

• Higher capacity utilisation projected across all plants, with enhanced Chennai plant capacity coming online.

• Regional revenue growth guidance: North America ~30%, Europe ~50% (on low base), Southeast Asia 10%-15%.

• Margins expected to return to 13%-14% range in Q1 FY 2027, assuming no further global disruptions.

• Board has proposed a final dividend, indicating confidence in ongoing profitability and cash flows.