Ram Ratna Wires Limited – Investor Presentation Summary

Key Operational Highlights

  • Company operates five plants across three states with PAN-India distribution network covering 200+ cities
  • 70-75% of products supplied to large OEMs across multiple industries
  • One of India's largest copper tubes plants in Bhiwadi, Rajasthan
  • Widest enamelled wire range in India (0.016 - 5.0 mm)
  • Key drivers: Diversification into higher-barrier products, copper tube import substitution, and expansion into adjacent businesses

Segment-wise Performance

Winding Wires & Strips Segment:

  • High-performance enameled copper wires and strips for electrical insulation applications
  • Products include: enameled copper wires, fine & ultra-fine wires, enameled aluminum wires, enameled Cu & Al strips, paper covered conductors, CTC conductors, fibreglass covered strips, corona-resistant wires, PI Class 240 (EV-grade), submersible winding wires, Litz wires, MCB coils

Copper Tubes & Pipes Segment:

  • Comprehensive copper tube portfolio for HVAC and refrigeration OEMs
  • Products include: level wound coils (LWC), pancake coils, inner grooved tubes (IGT), straight tubes, VRV/VRF tubes, medical-grade tubes, finned/low-finned tubes, capillary tubes, PVC-coated tubes, jumbo coils

Financial Highlights

FY26 Consolidated Performance:

  • Revenue from Operations: ₹5,176.6 Cr
  • Gross Profit: ₹522.4 Cr (10.1% margin)
  • EBITDA: ₹263.6 Cr (5.1% margin)
  • EBIT: ₹244.2 Cr
  • Profit Before Tax: ₹153.0 Cr
  • Profit for the Period: ₹108.6 Cr (2.1% PAT margin)

Historical Growth (FY23-FY26):

  • Revenue from Operations CAGR: 25.0% (₹2,650 → ₹5,177 Cr)
  • EBITDA CAGR: 34.4%
  • PAT CAGR: 32.2%
  • Gross Margin improvement: +80 bps (9.3% → 10.1%)

Geographical Revenue Split

  • Export revenue: 6% of Q2 FY27 revenue
  • Direct export to 7 markets
  • UL certification for copper tubes in process to expand international reach

Balance Sheet Snapshot

As at March 31, 2026 (₹ Cr):

  • Property, plant and equipment: ₹565.4
  • Capital work-in-progress: ₹33.6
  • Inventories: ₹486.1
  • Trade receivables: ₹640.6
  • Cash and cash equivalents: ₹7.8
  • Total equity: ₹584.9
  • Borrowings (non-current): ₹265.3
  • Borrowings (current): ₹388.8
  • Net debt/equity: 0.46x
  • ROCE: 25.1% in FY26 (up from 18.8% in FY24)

Financial Health Insights:

  • Long-term bank facilities rated CARE A− (Stable)
  • Short-term facilities rated CARE A2+
  • Working capital is copper-linked (inventories and receivables rise with volumes and copper prices)

Capex & Cash Flow Health

  • Capital expenditure funded through borrowings (increased from ₹296 Cr to ₹654 Cr FY24-FY26)
  • PP&E increased from ₹352 Cr to ₹565 Cr over FY24-FY26
  • Focus on capacity expansion and technology upgrades

Strategic & R&D Initiatives

Investments in Innovation:

  • Moving into higher-barrier product categories: EV magnet wires, CTC conductors for transformers, corona-resistant wires
  • PI Class 240 wires & strips for EV traction motors
  • Rectangular EV magnet wire on OEM development projects
  • Online pinhole & blister monitoring, 360° camera dimension checks, barcode traceability

EPAVO Electricals Acquisition:

  • Proposed acquisition of remaining 50% stake from EPACK for ₹15 Cr
  • Expected closing: November 30, 2026
  • 30 lakh motors/annum installed capacity
  • >90% localization in HVLS PMSM motors
  • Registered under Government of India PLI scheme

Tefabo Subsidiary Expansion:

  • Wind turbine tower internals and structures
  • Renewable-energy contract manufacturing
  • Supplying almost all major wind OEMs in India
  • Diversifying into nacelle parts

Industry Trends & Business Environment

Market Opportunities:

  • India power transformers: 8.22% CAGR
  • India electric motors: 9.4% CAGR (2026-34)
  • India imports roughly 70% of its copper tubes
  • EV penetration crossed 11% of India auto sales in May 2026
  • Global BLDC & high-efficiency motors: ~USD 22-25 Bn (2025) to ~USD 38-45 Bn by 2030
  • India targets ~900 GW capacity by FY32, from ~442 GW in FY24

Policy Support:

  • White Goods PLI and RIPS-2024 at Bhiwadi
  • BEE star norms favour BLDC motors
  • Smart meter installation drive

Management Commentary & Growth Outlook

Strategic Outlook:

  • Vision to make EPAVO the preferred supplier of BLDC motors for every energy-efficient application
  • Exploring newer segments in BLDC Motor beyond air conditioning
  • Focus on import substitution across product categories
  • Expanding into wind energy components through Tefabo

Growth Drivers:

  • Electrification and grid investment
  • Efficient motors and EVs adoption
  • Smart metering and electronics growth
  • Cooling and HVAC market expansion
  • Copper tube import substitution opportunity

Certifications & Quality:

  • International standards: IS 10773, IS 2501, ASTM B68/B75/B280, JIS H-3300, EN 12735-1, AS/NZS
  • Quality automation: APQP/PPAP per AIAG, 100% online eddy current testing, metallurgical grain-size and spectro analysis
  • Top 7% EcoVadis sustainability ranking