Rajratan Global Wire has delivered its highest ever sales tonnage performance in Q4FY26, achieving significant volume growth despite facing operational challenges from external market factors. The company conducted its earnings conference call on April 22, 2026, revealing both strong operational achievements and margin pressures.

Record Sales Performance

The company achieved remarkable volume growth across its operations, demonstrating resilience in challenging market conditions. Key performance metrics highlight the company's operational strength:

Margin Pressures and Cost Challenges

Despite strong volume performance, the company faced significant margin pressures during Q4FY26. Steel prices increased by approximately INR10,000 per ton from January to March 2026, which could not be immediately passed on to customers. This sudden raw material cost escalation, combined with energy availability and pricing issues, impacted EBITDA margins in the quarter.

The company has successfully implemented price increases in the current quarter to offset these cost pressures and expects margins to normalize to the 13-14% EBITDA range.

Capacity Expansion and Growth Strategy

Rajratan Global Wire is executing strategic capacity expansions across its facilities:

The Chennai facility achieved 85-90% capacity utilization by March 2026, prompting the capacity doubling initiative. The steel cord project for conveyor belts represents a strategic diversification into niche markets with higher realization potential of approximately INR150 per kg.

Export Growth and Global Expansion

The company demonstrated strong export performance with exports from India reaching over 9,000 tons in FY26, representing 250% growth. For FY27, the company targets approximately 15,000 tons of exports from India. Regional growth projections include 30% growth in North America, 50% growth in Europe (from low base), and 10-15% growth in Southeast Asia.

FY27 Outlook and Guidance

Management provided optimistic guidance for FY27, targeting 17-18% volume growth to reach approximately 155,000 tons total sales. This growth will be driven primarily by India operations due to Chennai capacity ramp-up, while Thailand is expected to grow 10-14% to 55,000-56,000 tons due to capacity constraints.

The company maintains confidence in achieving 13.5-14% EBITDA margins on a consolidated basis, having successfully passed on the steel price increases to customers in the current quarter.

Rajratan Global Wire has submitted its comprehensive investor presentation for Q4FY26 to BSE and NSE on April 21, 2026, providing detailed insights into the company's operational performance and strategic outlook. The company also published its audited financial results in newspapers on April 23, 2026, confirming strong volume growth offset by margin pressures due to raw material cost inflation.

Q4FY26 Operational Performance

The company demonstrated robust volume expansion across both India and Thailand operations during the quarter:

Financial Performance and Margin Impact

The published audited results confirmed the challenging margin environment despite strong revenue growth:

Full Year FY26 Consolidated Results

The company's annual performance showcased consistent growth momentum:

Management Commentary on Cost Pressures

Chairman and Managing Director Sunil Chordia explained the performance dynamics, highlighting that while the company achieved a 19% increase in sales tonnage during Q4FY26, EBITDA declined 14% due to a 20% increase in wire rod costs and higher energy expenses following geopolitical tensions. The company absorbed material inflation during the quarter and implemented price increases from April 1, 2026.

Geographic Revenue Distribution

The presentation revealed India operations contributed 65% of Q4FY26 revenue, while Thailand operations accounted for 35%. The company's diversified presence spans multiple regions with strong growth in international markets, particularly the USA which showed 413% growth in FY26.

Capacity Expansion and Future Outlook

The Chennai facility achieved 30,000 TPA capacity in Phase 1, with potential to reach 60,000 TPA. Combined with existing facilities, Rajratan maintains 72,000 TPA capacity in Pithampur, India and 60,000 TPA in Thailand. The company expects robust sales pipeline with marquee customers and higher capacity utilization across all plants in Q1FY27.

Dividend Recommendation and Compliance

The Board has recommended a final dividend of Rs 2 per equity share (100%) for FY26, subject to shareholder approval at the upcoming Annual General Meeting. The audited financial results were reviewed by the Audit Committee on April 21, 2026, and approved by the Board of Directors at their meeting held on the same date. Statutory auditors issued an unmodified opinion on the audited annual financial results, which were subsequently published in newspapers including Economic Times, Nai Dunia, and Choutha Sansaar on April 23, 2026.