Vidya Wires Limited Reports Strong Q2FY26 Performance with 26.1% PAT Growth
Vidya Wires Limited reported strong Q2FY26 results with PAT growing 26.1% YoY to ₹105.03 crores and revenue increasing 4.7% to ₹3,809.38 crores. The company plans major capacity expansion from 19,680 MT to 37,680 MT to capture larger market share. With diversified customer base and global presence across 18 countries, the company is positioned to benefit from India's growing electrical infrastructure and renewable energy sectors.
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Vidya Wires Limited has demonstrated strong financial performance in its Q2FY26 results, with the company reporting significant growth across key metrics. The manufacturer of super enameled copper wires, strips, and conductors has positioned itself as the fourth largest player in India's winding and conductivity products space.
Financial Performance Highlights
The company's Q2FY26 results show impressive growth momentum across multiple parameters:
| Metric: | Q2FY26 | Q2FY25 | Growth (%) |
|---|---|---|---|
| Revenue from Operations: | ₹3,809.38 crores | ₹3,639.88 crores | +4.7% |
| Gross Profit: | ₹284.39 crores | ₹241.63 crores | +17.7% |
| EBITDA: | ₹155.76 crores | ₹138.98 crores | +12.1% |
| PAT: | ₹105.03 crores | ₹83.27 crores | +26.1% |
| EPS: | ₹0.65 | ₹0.52 | +25.0% |
For the half-year period H1FY26, the company maintained strong performance with revenue from operations reaching ₹7,926.96 crores compared to ₹7,544.42 crores in H1FY25, representing a 5.1% increase. PAT for the half-year period grew substantially by 29.5% to ₹226.22 crores.
Strategic Growth Initiatives
Vidya Wires Limited is implementing comprehensive expansion strategies to strengthen its market position. The company plans to increase its production capacity from the current 19,680 MT to 37,680 MT, representing an addition of 18,000 MT. This expansion is expected to elevate the company's market share from 5.7% in FY25 to 11.3%, potentially making it the third largest player in the industry.
The expansion includes diversification into new product categories, with the portfolio set to expand from 12 to 20 products. Key additions include:
- Continuously Transposed Copper Conductors
- Solar Cables
- Copper Foils and Components
- Special Enamelled Copper Strips for Electric Vehicles
- Multi Paper Covered Copper Conductors
- Enameled Aluminum Winding Wires and Rectangular Strips
Market Position and Customer Base
The company serves a diversified customer base across industries, with no single customer accounting for more than 9% of sales during recent fiscal periods. Notable customers include Adani Wilmar, Schneider Electric, Transformers & Rectifiers Limited, Electrotherm Limited, and Suzlon Energy Limited.
| Geographic Distribution: | FY25 | FY24 | FY23 |
|---|---|---|---|
| India: | 86.37% | 86.29% | 86.29% |
| Outside India: | 13.63% | 13.71% | 13.71% |
Vidya Wires maintains a global footprint spanning 18 countries across 5 continents, serving over 450 customers including 19 international clients.
Financial Metrics and Ratios
The company's financial health indicators show consistent performance across multiple years:
| Parameter: | FY25 | FY24 | FY23 |
|---|---|---|---|
| Revenue from Operations: | ₹14,863.91 mn | ₹11,860.73 mn | ₹10,114.35 mn |
| EBITDA Margin: | 4.32% | 3.84% | 3.54% |
| PAT Margin: | 2.74% | 2.16% | 2.12% |
| ROE: | 24.57% | 20.47% | 21.48% |
| Debt to Equity Ratio: | 0.88 | 0.87 | 0.97 |
Future Outlook and Sector Opportunities
The company is well-positioned to benefit from India's expanding electrical infrastructure needs. With renewable energy and electric vehicle sectors contributing 9.51% of FY25 revenue, Vidya Wires is targeting growth in these emerging segments. The company expects exports to grow to 25% of total revenue post-expansion, supported by favorable policy environments in key export geographies.
Vidya Wires Limited continues to maintain its risk-free business model through back-to-back copper booking and copper hedging strategies, ensuring stable operations amid commodity price fluctuations.
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