Vidya Wires Limited Reports Strong H1FY26 Performance with 30% PAT Growth
Vidya Wires Limited reported strong H1FY26 results with revenue growing 5.1% to ₹793 crores and PAT surging 30% to ₹23 crores. EBITDA margin expanded 50 basis points to 4.3%. The company's capacity expansion through ALCU Industries is 75-80% complete and will nearly double production capacity to 37,680 metric tons per annum, with operations expected to start in Q4FY26.
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Vidya Wires Limited delivered a strong financial performance in the first half of FY26, marking a successful debut as a listed company. The manufacturer of winding and conductivity products reported consolidated revenue growth of 5.1% year-on-year to ₹793 crores from ₹750 crores in the corresponding previous period, accompanied by significant margin expansion across key profitability metrics.
Financial Performance Highlights
The company's profitability growth significantly outpaced revenue growth during H1FY26. Key financial metrics demonstrated robust improvement:
| Metric | H1FY26 | H1FY25 | Growth (%) |
|---|---|---|---|
| Revenue | ₹793 crores | ₹750 crores | +5.1% |
| EBITDA (without other income) | ₹34 crores | - | +19% |
| PAT | ₹23 crores | - | +30% |
| EBITDA Margin | 4.3% | - | +50 bps |
| PAT Margin | 2.8% | - | - |
| EPS | ₹1.41 | - | +29% |
The margin expansion was driven by improved product mix, higher capacity utilization, operating leverage, disciplined procurement, manufacturing productivity improvements, and timely pass-through pricing actions on input cost movements.
Three-Year Track Record
Vidya Wires demonstrated consistent growth momentum over the three-year period from FY23 to FY25:
| Parameter | CAGR (%) |
|---|---|
| Revenue | 21.23% |
| EBITDA | 33.86% |
| PAT | 37.86% |
| Net Worth | 28.91% |
This track record underscores the strength of the company's business model and execution capabilities.
Capacity Expansion Progress
The company is making significant progress on its capacity expansion initiative through subsidiary ALCU Industries. Construction at the new facility is 75-80% complete, with operations expected to commence in the last quarter of the current fiscal year. The expansion will nearly double manufacturing capacity from 19,680 metric tons per annum to 37,680 metric tons per annum.
| Expansion Details | Specifications |
|---|---|
| Current Capacity | 19,680 metric tons per annum |
| Expanded Capacity | 37,680 metric tons per annum |
| Construction Progress | 75-80% complete |
| Expected Commissioning | Last quarter of current fiscal |
| New Product Categories | 6-7 additional categories |
The new facility will enable the company to expand its product range from 12 to 18 product categories, including high voltage products such as continuously transposed copper conductors, enamelled aluminium products, multi-paper covered copper conductors, PV ribbons, specialized enamelled copper strips for electric vehicles, solar cables, and copper foils.
IPO Proceeds Utilization
The company is prudently deploying its IPO proceeds of ₹274 crores as committed:
| Allocation | Amount | Purpose |
|---|---|---|
| Capital Expenditure | ₹140 crores | Capacity expansion at ALCU Industries |
| Debt Repayment | ₹100 crores | Reduce leverage and improve debt-equity ratio |
These strategic investments are expected to reinforce the company's financial position and enable margin-accretive growth.
Operational Metrics and Market Position
Vidya Wires operates with strong operational efficiency metrics. The company currently utilizes approximately 90% of its existing capacity and maintains a well-diversified customer base serving more than 458 customers, with no single customer contributing more than 9% of revenue. Repeat customer revenue stands at an impressive 94%.
The company maintains a geographically diversified revenue mix with India contributing 86% of revenues and exports to more than 18 countries across five continents accounting for 14%. Management targets increasing export contribution to 22-25% of revenues post-expansion.
Working Capital Management
The company has been focusing on improving working capital efficiency. Receivable days have been reduced from 36 days in FY25 to 33 days currently, with management targeting further reduction to 30 days. All receivables are within 30-60 days, with no receivables outstanding beyond 90 days. The company aims to maintain inventory days at up to 20 days going forward.
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