💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations declined by 38.1% YoY, falling from INR 1,003.07 Cr in FY24 to INR 620.93 Cr in FY25. This was primarily driven by a significant slowdown in the High Density Polyethylene (HDPE) granules trading division and reduced contribution from the manufacturing segment.

Geographic Revenue Split

Not disclosed in available documents; however, the company operates a major manufacturing facility in Ratlam, Madhya Pradesh, and wind farms in Jamnagar, Gujarat.

Profitability Margins

Net Profit After Tax (PAT) margin stood at 3.58% in FY25 compared to 3.64% in FY24. Reported PAT decreased by 38.9% from INR 36.32 Cr in FY24 to INR 22.20 Cr in FY25, tracking the revenue decline.

EBITDA Margin

EBITDA margin was approximately 4.2% in FY25, showing a downward trend to 2.9% in the quarter ended June 2026 due to intense competition and pricing pressure in the wire manufacturing division.

Capital Expenditure

Historical net worth grew to INR 248 Cr by March 2025 from INR 151.79 Cr in March 2022. While specific future Capex values are not listed, the company maintains a low gearing of 0.11x, suggesting capacity for debt-funded expansion if required.

Credit Rating & Borrowing

The company maintains a 'Stable' to 'Negative' outlook from CRISIL. Borrowing costs are supported by a healthy financial risk profile with an interest coverage ratio of 18.11 times in FY25 and low bank limit utilization of approximately 13-17%.

⚙️ Operational Drivers

Raw Materials

Key raw materials include Steel (for wire manufacturing) and HDPE (High Density Polyethylene) granules (for the plastic and trading divisions). Steel and plastic granules represent the bulk of the cost of materials consumed, which totaled INR 356.10 Cr in FY25.

Key Suppliers

Not disclosed in available documents; however, the company maintains long-standing relationships with a base of suppliers for over two decades.

Capacity Expansion

Current installed capacity is 90,000 tonnes per annum at the Ratlam (Madhya Pradesh) facility. The company also operates two wind farms with a capacity of 0.80 MW each (1.6 MW total) in Jamnagar, Gujarat.

Raw Material Costs

Cost of materials consumed was INR 356.10 Cr in FY25 (57.3% of revenue), while purchases of stock-in-trade (primarily HDPE granules) were INR 185.66 Cr (29.9% of revenue).

Manufacturing Efficiency

The company produces specialized products like Low Relaxation Pre-stressed Concrete (LRPC) strands, which have fewer competitors, allowing for better market positioning despite intense industry competition.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

The company aims to leverage its established market position in specialized LRPC strands and geomembrane sheets. Strategy includes maintaining a diversified end-user base of 150-200 customers to reduce cyclical risk and utilizing its strong financial profile (low debt) to navigate market downturns.

Products & Services

LRPC strands, steel wires, geomembrane sheets, PE coated and greased strands, plastic film sheets, and HDPE granules (trading).

Brand Portfolio

DP Wires (DPWL).

New Products/Services

The company recently ventured into the trading of HDPE granules and continues to focus on specialized plastic products like geomembrane sheets.

Market Expansion

Focusing on the infrastructure and construction sectors which are the primary demand drivers for LRPC strands.

Market Share & Ranking

Identified as one of the few players manufacturing specialized LRPC stranded wire, indicating a strong niche market position.

🌍 External Factors

Industry Trends

The industry is seeing a shift toward specialized steel products like LRPC. However, it remains fragmented with intense competition and is currently facing a slowdown in the plastic trading segment.

Competitive Landscape

Intense competition from both organized and unorganized players in the steel wire and plastic industries.

Competitive Moat

The moat is built on the specialized nature of LRPC strands and geomembranes, which require technical expertise and have fewer manufacturers compared to standard steel wires.

Macro Economic Sensitivity

Highly sensitive to infrastructure spending and GDP growth, as major demand for the wire division comes from construction and infrastructure projects.

Consumer Behavior

Demand is driven by B2B institutional buyers in infrastructure and construction rather than individual consumer trends.

Geopolitical Risks

Weakening global prices for commodities impacted Q1FY25 performance.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to standard manufacturing and environmental regulations; the company maintains adequate internal financial controls as per the Companies Act 2013.

Environmental Compliance

The company operates wind farms for renewable energy generation, contributing to ESG goals.

Legal Contingencies

The company has disclosed the impact of pending litigations in Note 36 of its financial statements; however, specific INR values for these contingencies were not provided in the summary.

⚠️ Risk Analysis

Key Uncertainties

Volatility in raw material prices (Steel and HDPE) could impact margins by more than 1-2%. A sustained slowdown in infrastructure projects poses a significant risk to the wire division's volume.

Geographic Concentration Risk

Manufacturing is concentrated in Ratlam, Madhya Pradesh, making the company dependent on the industrial climate of that region.

Third Party Dependencies

Moderate dependency on steel suppliers and HDPE granule producers.

Technology Obsolescence Risk

Low risk in the steel wire segment, but the plastic division must stay updated with geomembrane and film sheet standards.

Credit & Counterparty Risk

Receivables are described as moderate, with debtor days at 36 in FY24, indicating a healthy collection cycle.