Rajratan Global Wire (517522) Q4 25/26 earnings summary

Executive summary

• Achieved record sales volume, with full-year volume up 18% to over 133,000 tons and Q4 FY26 volume up 19% year-over-year, driven by robust demand in India, Thailand, and export markets.

• Operating revenue for Q4 FY26 rose 25% year-over-year to Rs 31,429 Lakhs, with full-year consolidated revenue reaching Rs 1,15,650 lakhs.

• EBITDA margin declined in Q4 due to a 20% increase in raw material and energy costs, but price hikes have since been implemented.

• Market share in the tire sector rebounded to 42%-43% in India, supported by increased vehicle exports.

• Audited standalone and consolidated financial results for FY 2025-26 were approved with unmodified opinions; a final dividend of Rs. 2 per share was recommended.

Financial highlights

• India sales volume grew 19%-20% year-over-year; Thailand grew 17%-18%; consolidated volume growth was 18%.

• Q4 FY26 EBITDA: Rs 2,860 Lakhs, down 14% year-over-year; full-year EBITDA: Rs 13,995 Lakhs, up 10%.

• Q4 FY26 PAT: Rs 1,543 Lakhs, up 2% year-over-year; full-year PAT: Rs 7,011 Lakhs, up 19%.

• Gross margin expected to return to 38%-39% in Q1 FY27 after passing on cost increases.

• Other income increased due to foreign currency gains from dollar and Thai baht appreciation.

Outlook and guidance

• Targeting 17%-18% consolidated volume growth for FY27, aiming for 155,000 tons in total sales if global conditions remain stable.

• Higher capacity utilisation projected across all plants, with Chennai capacity doubling and steel cord/conveyor belt project trials starting in Q2 FY27.

• Regional revenue growth guidance: North America +30%, Europe +50% (on low base), Southeast Asia +10%-15%.

• Positive demand outlook, with new markets in Europe and USA being targeted.