Rajratan Global Wire Reports 12% Revenue Growth in Q1 FY26, Chennai Plant Targets Breakeven

Rajratan Global Wire Limited reported a 12% increase in consolidated revenue to Rs 246.51 crore for the first quarter of FY2026, compared to Rs 220.14 crore in the corresponding period last year. The bead wire manufacturer delivered 28,634 tonnes during the quarter, representing an 8% volume growth over Q1 FY25.

The company's EBITDA grew 5% to Rs 30.94 crore, though margins declined by 85 basis points to 12.55% from 13.40% in the previous year. Profit after tax decreased 11% to Rs 13.52 crore, with earnings per share falling to Rs 2.66 from Rs 3.00 in Q1 FY25.

Chairman and Managing Director Sunil Chordia attributed the mixed performance to several factors, including Rs 18-20 crore worth of goods in transit for export orders and higher operational expenses at the Chennai plant. The Chennai facility, which was commissioned during the quarter, led to increased depreciation and interest costs that impacted overall profitability.

Rajratan operates three manufacturing facilities with a combined capacity of 192,000 tonnes per annum. The company has 72,000 TPA capacity in Pithampur, India, 60,000 TPA in Thailand, and recently established a 60,000 TPA greenfield unit in Chennai, of which 30,000 TPA was installed in Phase 1.

The India operations contributed 64% of revenue share while Thailand accounted for 36% during Q1 FY26. India volumes grew 6% to 16,961 tonnes while Thailand volumes increased 11% to 11,673 tonnes. The Thailand facility achieved 80% capacity utilization despite unplanned downtime that reduced volumes by approximately 1,000 tonnes.

Management highlighted challenging market conditions including excess bead wire capacity additions across India that exceeded market growth, leading to intensified price-based competition from domestic and international players. Global tariff uncertainties also affected demand, though export orders began recovering toward the quarter's end.

The company focused on high-margin customer segments and accelerated customer approvals for Chennai plant products to counter margin pressures. Rajratan benefited from weak steel raw material prices and concentrated on value-added sales to marquee tire manufacturers.

Looking ahead, management expects higher sales volumes and improved realizations driven by stabilizing demand. The Chennai plant is targeting over 50% capacity utilization to improve fixed cost absorption, with management aiming for breakeven by the third quarter. The facility is eligible for an 8% PLI scheme that should provide additional revenue support.

Rajratan supplies bead wire to major tire manufacturers including Apollo Tyres, Bridgestone, Continental, JK Tyre, MRF, Michelin, and other global brands. The company's Pithampur facility recently received the TPM Excellence Award from Japan Institute of Plant Maintenance, while the Thailand facility achieved Green Industry Level 3 certification.

The company maintains its focus on sustainability initiatives, with solar power installations at the Thailand facility and ongoing installation at Chennai expected to meet substantial operational energy needs. Management continues to work toward maximizing capacity utilization and enhancing market share across all three facilities.