The Company is engaged in the manufacturing of bead wire, a high-carbon steel wire utilized in the production of tires. Additionally, the Company produces drawn steel wire, commonly referred to as black wire, which finds applications in various industries such as automobile, construction, and engineering. Presenting below are its Q1 FY26 earnings results.
Q1 FY26 Earnings Results
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Revenue from Operations: ₹246.5 crores, up 12% YoY from ₹220.1 crores in Q1 FY25.
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Total Income: ₹247.55 crores.
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Total Expenses: ₹229.72 crores, up 14.4% YoY.
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Profit Before Tax (PBT): ₹17.83 crores, down 12.3% YoY from ₹20.32 crores in Q1 FY25.
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Profit After Tax (PAT): ₹13.52 crores, down 6.6% YoY from ₹15.24 crores in Q1 FY25.
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Earnings Per Share (EPS): ₹2.66, down from ₹3.00 in Q1 FY25.
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EBITDA: ₹31.98 crores.
Expenses increased substantially, with material costs up 9.9% YoY, employee cost lower, and finance cost up by over 40% YoY.
Management Commentary & Strategic Decisions for Q1 FY26 Earnings Results
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Rajratan maintained growth in topline performance driven by volume expansion and robust demand in the tire sector, its primary customer base.
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The company has set a revenue target of ₹1,100 crores for FY26 and is aiming for a 15% volume growth, with a continued focus on ramping production capabilities and expanding market reach.
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Plans are underway to make the Chennai plant breakeven in the coming quarters—a key strategic milestone for overall profitability.
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Management emphasized operational efficiency and maintaining high utilization at both Thailand and Pithampur plants.
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There’s a strategic focus on diversifying the customer base, moving towards premium automotive clientele and limiting exposure to low-end cycle tire manufacturers.
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Rajratan continues to invest in technology and process improvements to achieve better margin sustainability despite the pressure from rising material and finance costs.
Q4 FY25 Earnings Results
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Revenue from Operations: ₹251 crores, up 4.58 percent on the YoY basis.
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Total Income: ₹251.42 crores.
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Total Expenses: ₹218 crores, up 6.3 percent on the YoY basis
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Profit Before Tax (PBT): ₹20 crores.
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Profit After Tax (PAT): ₹15 crores, down 25 percent from the same quarter, last year
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Earnings Per Share (EPS): ₹2.99 vs ₹3.99 during the same quarter last year.
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EBITDA: ₹33.33 crores; EBITDA margin at 13.26%.
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Capacity utilization: 85-90% at both India and Thailand units in Q4, supporting improved profitability.
To view the company’s previous earnings and latest concall transcripts, click here to visit the Alphastreet India news channel.