Financial Performance
Ram Ratna Wires Limited reported strong financial results for FY 2025-26 with standalone revenue growing 40% to ₹5,076.11 crore and net profit increasing 51% to ₹108.32 crore. Consolidated revenue reached ₹5,176.65 crore (41% growth) with profit attributable to owners at ₹107.05 crore (53% growth). The performance was driven by successful capacity expansion including the commissioning of a new copper tubes manufacturing facility at Bhiwadi, Rajasthan under the PLI Scheme, and the ramp-up of existing operations.
Operational Highlights
The company completed several strategic initiatives including the merger of Global Copper Private Limited, increased stake in Tefabo Product Private Limited to 64%, and transitioned Epavo Electricals to a 50:50 joint venture. The Bhiwadi copper tubes plant achieved 45% capacity utilization while winding wires operated at 76% utilization. The company also commissioned a 4MW solar power plant and expanded its product portfolio to include Continuously Transposed Conductors for HVDC transformers.
Corporate Actions & Capital Structure
Significant corporate actions included a 1:1 bonus issue that increased paid-up capital to ₹46.67 crore, enhanced borrowing limits to ₹1,500 crore, and security creation limits to ₹3,500 crore. The board recommended a final dividend of ₹2.50 per share, totaling approximately ₹23.34 crore. Total borrowings increased to ₹654.14 crore to fund expansion and working capital requirements.
Regulatory Challenges
The company faces substantial tax demands of ₹679.07 crore plus ₹314.90 crore in interest for Assessment Years 2021-22 to 2024-25 following search and seizure actions by the Income Tax Department. Appeals are pending before CIT(A). Additionally, reassessment notices were served on Global Copper for AY 2019-20 and 2020-21. Management has not made provisions in the financial statements for these contingent liabilities.
Governance & Compliance
The 34th AGM is scheduled for August 4, 2026, with key agenda items including dividend declaration, director reappointments, and approval of enhanced borrowing limits. The company maintained CARE A- (Stable) credit rating and reported clean secretarial and cost audit reports. CSR initiatives focused on education through HEMA Foundation, reaching 6,000+ schools.
Forward Outlook
Despite the tax disputes, management expects continued growth trajectory supported by expanded manufacturing capabilities, PLI scheme benefits, and diversified product portfolio. The company remains focused on capacity utilization improvement and market expansion while navigating regulatory challenges through appropriate legal channels.