Company Overview
Precision Wires India Limited (BSE: 523539, NSE: PRECWIRE) submitted a revised Annual Report for FY 2025-26, replacing the previously filed version. The company manufactures Enamelled Copper Winding Wires and Conductors for electrical/electronics industries.
Financial Performance Highlights
Precision Wires delivered exceptional FY26 results with revenue increasing 34.7% to ₹5,41,018.05 lakhs (₹541.02 crore) from ₹4,01,483.14 lakhs in FY25. Net profit surged 72.4% to ₹15,526.80 lakhs (₹155.27 crore) from ₹9,004.01 lakhs. Basic EPS stood at ₹8.59 compared to ₹5.04 in previous year.
Cash Flow Analysis
Operating cash flow improved significantly to ₹27,295.96 lakhs (PY: ₹16,791.81 lakhs) driven by strong operational performance. Investing activities showed substantial outflow of ₹39,681.49 lakhs due to fixed asset purchases of ₹29,364.46 lakhs and mutual fund investments. Financing activities generated ₹19,942.67 lakhs from term borrowings and preferential share issue.
Capital Structure & Dividend
The company completed preferential allotment of 41,50,000 equity shares at ₹151 per share, raising ₹62.67 crore. Paid-up capital increased to ₹18,28,07,975 shares. The Board declared two interim dividends of 35% each and recommended final dividend of 55% (₹0.55 per share), bringing total dividend payout to 125% for FY26.
Operational Highlights
Production and sales increased significantly despite copper prices rising approximately 15% in USD terms and Indian Rupee weakening around 4.5%. The company commenced copper rod manufacturing at Valvada, Gujarat for captive use and maintained balanced revenue mix with export contributions.
Expansion Projects
Multiple capacity expansion projects are ongoing at Silvassa units. The Copper Refining/Recycling Project at Zaroli, Gujarat is expected to commence trial production in Q2 FY27. Total installed capacity for copper winding wires is projected to reach approximately 68,500 MT/PA after project completion.
Balance Sheet & Ratios
Property, plant and equipment stood at ₹49,193.13 lakhs with capital work-in-progress of ₹18,297.96 lakhs. Key ratios showed improvement with Return on Equity at 23% (PY: 17%), though Current Ratio declined to 1.35 from 1.60 due to increased working capital requirements. Debt-Equity ratio increased to 0.38 from 0.11.
Corporate Governance & Compliance
The company maintains all mandatory committees and conducted four Board meetings during the year. CSR spending was ₹169.28 lakhs against obligation of ₹197.30 lakhs. The 37th AGM is scheduled for 10th August 2026 to approve financial statements, dividend, director reappointment, and amendments to Memorandum and Articles of Association.
Risk Factors & Outlook
The company faces risks from geopolitical tensions, rising copper prices, currency volatility, and potential RBI rate hikes. The management remains focused on expansion projects and operational efficiency while navigating market challenges.