Rajratan Global Wire Reports 20% Revenue Growth with Record Production Volume
Rajratan Global Wire Limited achieved 20% revenue growth in Q2 FY26, with EBITDA close to Rs. 40 crores and record production exceeding 32,000 tons. The company's Chennai plant is gaining approvals and contributing to increased production. Export growth is strong, with current exports outside India and Thailand at 2,200-2,300 tons monthly. Expansion plans include increasing Chennai plant capacity to 60,000 tons and establishing a new 10,000-ton wire rope facility in Pithampur. The company targets 180,000-200,000 tons production and Rs. 2,000 crores topline in three years. Export targets for next year are set at 35,000 to 40,000 tons, focusing on Southeast Asia, Europe, and North America. Despite competitive pressures, the company expects EBITDA margins of 13-15%.
*this image is generated using AI for illustrative purposes only.
Rajratan Global Wire Limited , a leading manufacturer of bead wire for the tire industry, has reported a robust 20% revenue growth for the quarter, driven by substantial volume growth in both its Thailand and India operations. The company achieved a significant milestone by crossing 32,000 tons of production in a single quarter for the first time.
Financial Highlights
| Metric | Q2 FY26 Performance |
|---|---|
| Revenue Growth | 20.00% |
| EBITDA | Close to Rs. 40.00 crores |
| Production Volume | Over 32,000 tons |
Operational Performance
Chairman Sunil Chordia attributed the strong performance to several factors:
- Chennai Plant Progress: The company's Chennai facility is gaining more approvals, contributing to increased production and sales.
- Global Market Traction: Rajratan is experiencing good traction in global markets for exports.
- Export Growth: Current total exports to markets outside India and Thailand stand at 2,200-2,300 tons per month.
- Capacity Utilization:
- Thailand operations are running at 91% utilization
- Chennai plant is operating at around 60% capacity
Expansion Plans
Rajratan Global Wire is actively pursuing growth opportunities:
- Chennai Phase-II Expansion:
- Investment: Rs. 20.00-25.00 crores
- Capacity increase: To 60,000 tons
- New Wire Rope Facility:
- Location: Pithampur
- Investment: Rs. 70.00 crores
- Capacity: 10,000 tons annual
- Expected production start: Q1 of next financial year
Future Outlook
The management projects ambitious growth over the next three years:
- Production Target: 180,000-200,000 tons
- Topline Projection: Rs. 2,000.00 crores
Export Strategy
Yashovardhan Chordia, Executive Director, highlighted the company's export plans:
- Current year export expectation: About 20,000 tons
- Next year's export target: 35,000 to 40,000 tons
- Key export markets: Southeast Asia, Europe, and North America
Market Dynamics
The company faces a competitive landscape but remains optimistic:
- Realization range: $800.00 to $1,050.00 per ton, depending on the customer profile
- EBITDA margin expectation: 13-15% range
Sunil Chordia stated, "We have left behind the worst quarter, and going forward, you should be able to see better performance of your company."
As Rajratan Global Wire Limited continues to expand its global footprint and enhance its production capabilities, the company appears well-positioned to capitalize on the growing demand for bead wire in the tire industry. However, investors should note that the company's performance remains subject to market dynamics and competitive pressures in the global bead wire market.
Historical Stock Returns for Rajratan Global Wire
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.15% | +3.84% | -2.22% | +4.86% | -12.02% | +446.09% |
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