Rajratan Global Wire (517522) Q2 25/26 earnings summary

Executive summary

• Achieved 20% year-over-year revenue growth in Q2 FY26, with record consolidated quarterly sales volume exceeding 32,000 tons, driven by strong performance in India and Thailand and Chennai plant ramp-up.

• Chennai plant turned profitable within 12 months, reaching 60% capacity utilisation in Q2 FY26 and contributing significantly to export growth.

• Thailand operations remained profitable and competitive despite Chinese imports, operating at 91% utilisation.

• Unaudited standalone and consolidated financial results for Q2 and H1 FY26 were approved by the Board, with no material misstatements noted.

• Amendments to the Memorandum and Articles of Association were approved to enable electricity generation and captive consumption from non-fossil sources, subject to shareholder approval.

Financial highlights

• Q2 FY26 consolidated revenue was Rs. 29,417 lakhs, up 20% year-over-year; EBITDA reached nearly INR 40 crores, and PAT was Rs. 2,055 lakhs, up 8% year-over-year.

• Sales volume: India 20,816 MT (+21% YoY), Thailand 12,071 MT (+5% YoY), total 32,887 MT (+15% YoY).

• Chennai unit sales tonnage was 2,485 MT in Q1 and 4,768 MT in Q2, with full-year guidance of 6,000–7,000 MT.

• Other expenses increased 60% year-over-year, mainly due to Chennai plant operationalization and higher freight and power costs.

• Income tax outflow reduced due to higher depreciation from the Chennai plant.

Outlook and guidance

• Export volumes targeted at 40,000 tons for FY27, with continued focus on Southeast Asia, Europe, and North America.

• Three-year vision includes reaching 180,000 tons of bead wire and 15,000–20,000 tons of other products, aiming for a topline close to INR 2,000 crores.

• Expectation of higher sales volumes and increased capacity utilisation at Chennai in Q3 FY26.

• GST rationalisation on tyres and automobiles could further boost demand.

• Tyre industry growth projected at 5–8% for the next year, supporting steady demand.