Ram Ratna Wires Limited has disclosed receiving Income Tax assessment orders from the Deputy Commissioner of Income Tax, Central Circle 1, Vadodara, with a significantly higher demand than previously reported. The company received these orders on March 09, 2026, via the Income Tax Portal for assessment years 2021-22 and 2022-23, representing a substantial escalation from earlier assessments.

Assessment Order Details

The Income Tax Department issued assessment orders under section 147 of the Income Tax Act, 1961, following assessment proceedings for the specified years. The orders cover financial years 2020-21 and 2021-22 respectively, with the company making the disclosure pursuant to Regulation 30(13) of the SEBI Listing Regulations.

Financial Implications

The IT Department has raised demand notices under section 156 of the Income Tax Act with substantial financial implications for the company. The total demand aggregates to Rs. 70.96 crores, which includes an interest component of Rs. 24.51 crores. These demands arise from certain additions made under various sections of the Income Tax Act during the assessment proceedings.

Company's Response Strategy

Ram Ratna Wires is currently evaluating the demand orders received from the tax authorities. The company has outlined a comprehensive approach to address these assessments, similar to its previous strategy for earlier orders. The company plans to file rectification applications for computational and clerical errors identified in the orders and intends to file appeals against the additions made to the assessed income.

The company has stated that it does not envisage any material impact on its financials, operations, or other activities arising from these orders at present, despite the significant quantum of the demand.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30(13) of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. This communication continues the company's earlier intimations dated November 29, 2023, December 04, 2023, and March 31, 2025, regarding similar matters. The company has provided comprehensive details in the prescribed Form A format and additional information as required under SEBI regulations, ensuring full transparency with stakeholders regarding these regulatory developments.

Ram Ratna Wires Limited delivered exceptional financial performance in Q3FY26, reporting a significant 75.6% year-on-year increase in net profit to ₹3,213.72 lakhs compared to ₹1,830.18 lakhs in Q3FY24. The company announced its results through a press release dated February 6, 2026, highlighting record quarterly performance with all-time high revenue, EBITDA and PAT.

Standalone Financial Performance

The company's quarterly performance showed substantial improvement across key metrics. Revenue from operations grew strongly by 42.1% to ₹1,24,961.76 lakhs from ₹87,937.10 lakhs in Q3FY24. Total revenue for Q3FY26 reached ₹1,25,452.67 lakhs, marking a 41.9% increase from ₹88,385.73 lakhs in the corresponding quarter.

Consolidated Performance Highlights

On a consolidated basis, the company reported even stronger performance with revenue from operations reaching ₹1,277.9 crores in Q3FY26, representing a 43.8% year-on-year growth from ₹888.7 crores. Operating EBITDA surged 84.9% to ₹72.0 crores, while profit after tax increased 72.5% to ₹31.6 crores.

Nine-Month Performance and Segment Growth

For the nine months ended December 31, 2025, Ram Ratna Wires maintained strong momentum with net profit increasing 26.1% to ₹6,831.13 lakhs from ₹5,416.57 lakhs. On consolidated basis, nine-month revenue grew 25.9% to ₹3,423.8 crores with profit after tax rising 34.6% to ₹69.4 crores. The company operates through two main segments - Enamelled Wires and Strips, and Copper Tubes and Pipes, with the latter segment's contribution increasing from 17% to 27% of revenues.

Management Commentary and Strategic Developments

MD Shri Mahendrakumar Kabra attributed the strong performance to rising demand for copper tubes driven by HVAC industry growth and continued benefits from India's electrification push. The company is progressing with Inner Grooved Tube manufacturing and expanding domestic capacity. The Board approved significant management changes effective April 1, 2026, with Shri Iqbal Singh Saggu appointed as new CFO and Senior Vice President (Finance).

Corporate Actions and Governance

The company issued 4,66,74,536 bonus equity shares in a 1:1 ratio with record date December 26, 2025, increasing paid-up equity share capital to ₹4,667.45 lakhs. Additionally, 48,000 equity shares were allotted under the Employee Stock Option Plan 2023. The results were reviewed by the Audit Committee and approved by the Board on February 6, 2026, with statutory auditors issuing an unmodified opinion.