Rajratan Global Wire Limited , a leading manufacturer of bead wire, has announced growth projections for the fiscal year 2026 (FY26), highlighting improvements across its operations.

Volume Growth and Revenue Projections

The company expects a 15% consolidated volume growth in FY26, underpinned by performance across its facilities. For the first half of FY26, Rajratan Global Wire projects a 16% year-on-year increase in revenue, targeting ₹540.00 crore. This growth is expected to be accompanied by EBITDA margins of around 13%.

Chennai Plant Profitability

A key highlight of the company's recent performance is the turnaround of its Chennai plant. The facility has achieved profitability at 60% utilization, marking a milestone in its operational efficiency. This development demonstrates the plant's ability to contribute positively to the company's bottom line before reaching full capacity.

Thailand Operations

Rajratan's Thailand operations continue to show strong performance, maintaining a utilization rate of 91%. This indicates efficient capacity management and robust demand in the international market.

Strategic Initiatives

The company's growth strategy includes:

1. Capacity Expansion: Rajratan Global Wire is expanding its total capacity to 1.2 lakh tonnes per annum (TPA) across its India and Thailand operations.
2. Export Mix Improvement: The company is focusing on enhancing its export mix, which is expected to contribute to revenue growth and margin improvement.
3. Market Share Gains: With increased capacity and improved operational efficiency, Rajratan aims to capture a larger share of the bead wire market.

Financial Outlook

The projected growth and operational improvements are expected to result in:

• Higher operating leverage
• Improved profitability
• Strengthened market position

Investor Presentation Highlights

According to the recent investor presentation for Q2 FY2025-26:

• The company achieved its highest ever quarterly consolidated volumes, exceeding 32,000 MT.
• Bead wire volumes reached a record 29,003 MT across all plants.
• EBITDA touched ₹40.00 crore, the highest in 13 quarters.
• The Chennai plant turned profitable within 12 months of commissioning.
• Thailand subsidiary operations remained growing and profitable, despite Chinese competition.

Management Commentary

Sunil Chordia, Chairman and Managing Director, stated, "The game-changer in the company's performance was the decisive turnaround in its new Chennai plant. This plant turned profitable within 12 months of being commissioned - achieving 60% capacity utilisation in the latter half of Q2 FY26."

He further added, "As the Chennai plant increases capacity utilisation, the growth impact on the company's financials could become more evident and sustainable."

Rajratan Global Wire's projections and recent performance indicate a positive outlook for the company, with strategic expansions and operational efficiencies driving growth in the coming fiscal year.

Rajratan Global Wire , a key player in the Indian manufacturing sector, has released its Q2 financial results for the quarter ended September 30, showcasing strong performance and strategic initiatives.

Financial Highlights

Strategic Initiatives

Solar Power Investment

The company's Board has approved entering into a shareholders agreement for investment up to ₹2.00 crores in a solar power generating company for group captive consumption. This move aligns with the growing trend of companies investing in renewable energy sources to reduce their carbon footprint and potentially lower long-term energy costs.

Amendments to Memorandum and Articles of Association

The Board has also approved amendments to the Memorandum and Articles of Association to include provisions for electricity generation and captive consumption through non-fossil sources like solar power and wind mills. These amendments are subject to shareholder approval.

Chennai Greenfield Project

Rajratan Global Wire completed the trial run of its Chennai Greenfield project in April. The company has begun charging manufacturing and operating expenses related to this project to the profit and loss statement for the half-year period.

Conclusion

Rajratan Global Wire's Q2 results reflect strong financial performance while simultaneously investing in sustainable energy initiatives. The consolidated revenue and profit figures, coupled with strategic moves towards solar power and amendments to include renewable energy provisions, may position the company for potential long-term growth and sustainability.

Investors and market watchers may monitor how these initiatives impact the company's operational efficiency and profitability in the coming quarters, as well as the progress of the Chennai Greenfield project as it moves into full operation.