KRITIKA - Kritika Wires

📊 NSE: KRITIKA 🏢 Steel - Medium / Small 📅 Last Updated: 12/14/2025 9:04

💰 Financial Performance

Revenue Growth by Segment

Total Operating Income grew by 74.06% YoY, reaching INR 760.36 Cr in FY25 compared to INR 436.84 Cr in FY24. Q1 FY26 revenue stood at INR 206.86 Cr, a 22.91% increase over Q1 FY25 (INR 168.30 Cr). Growth is primarily driven by volumetric increases in steel and galvanized wire sales.

Geographic Revenue Split

Operations are concentrated in Eastern India with manufacturing facilities in Howrah, West Bengal (Sankrail Industrial Park) and Khurda, Odisha (IID Centre). While specific % splits are not disclosed, these regions serve as the primary hubs for catering to State Electricity Boards and private players.

Profitability Margins

Profitability showed a declining trend despite revenue growth; PAT margin contracted from 2.37% in FY24 to 1.33% in FY25. Q1 FY26 PAT margin further declined to 0.66% from 1.28% in Q1 FY25, primarily due to higher raw material costs and increased interest obligations.

EBITDA Margin

EBITDA margin declined to 3.20% in FY25 from 4.14% in FY24. In Q1 FY26, the margin was 1.46% compared to 1.82% in Q1 FY25. This compression of 94 basis points YoY in FY25 reflects an inability to fully pass on raw material price volatility to customers.

Capital Expenditure

The company maintains an installed capacity of 66,200 MTPA. While specific future INR Cr figures for expansion are not disclosed, the company is ramping up execution to meet a medium-term revenue target of INR 800-1000 Cr, implying optimized utilization of existing assets and potential debottlenecking.

Credit Rating & Borrowing

CRISIL assigned 'CRISIL BBB+/Stable' for long-term and 'CRISIL A2' for short-term facilities. However, Infomerics downgraded the company to 'IVR BBB-/Negative' (Issuer Not Cooperating) due to non-receipt of 'no default statements' for Dec 2024-Feb 2025. Total debt increased 27.79% to INR 51.23 Cr in FY25.

⚙️ Operational Drivers

Raw Materials

Steel wire rods and zinc (for galvanization) are the primary raw materials, accounting for the bulk of the cost of goods sold. Specific % of total cost is not disclosed, but volatility in these commodities is cited as a key risk to margins.

Import Sources

Not specifically disclosed in the documents, though the company operates near major steel hubs in West Bengal and Odisha, suggesting domestic sourcing from these states.

Capacity Expansion

Current installed capacity is 66,200 MTPA across two plants. The company is focusing on volumetric growth to achieve a 59% revenue increase in FY25, targeting over INR 700 Cr in sales through higher capacity utilization.

Raw Material Costs

Raw material costs are highly volatile; the company's PAT margin dropped by 104 basis points in FY25, indicating that input cost increases outpaced revenue growth. Procurement is managed through a prudent working capital strategy.

Manufacturing Efficiency

The company is targeting a revenue growth of 59% in FY25 through 'ramped up execution' and 'volumetric growth,' suggesting an improvement in capacity utilization from previous levels.

📈 Strategic Growth

Expected Growth Rate

59%

Growth Strategy

Growth will be achieved through an aggressive expansion of the order book (INR 172 Cr in hand as of Nov 2024), increasing penetration in the EPC segment, and leveraging the 71.89% acquisition of a new entity completed in Nov 2025 for INR 1.5 Cr to create strategic synergies.

Products & Services

All types of steel wire, galvanized wire, and power conductors used in electricity transmission and distribution.

Brand Portfolio

Kritika Wires.

New Products/Services

Increased focus on power conductors for the EPC sector, driven by government capital expenditure schemes in the power sector.

Market Expansion

The company is expanding its strategic business portfolio through acquisitions, specifically the 71.89% stake in a target company for investment and synergy purposes.

Strategic Alliances

Part of the 'Jai Hanuman Group' of West Bengal, providing group-level operational support and promoter funding if required.

🌍 External Factors

Industry Trends

The industry is seeing a shift toward higher demand for power conductors driven by government schemes. The sector is growing but remains highly competitive with low entry barriers for basic wire products.

Competitive Landscape

Faces intense competition from both organized and unorganized players in the steel and galvanized wire market.

Competitive Moat

The moat is based on established relationships with government entities like PGCIL and ISO-certified manufacturing processes. However, this is a weak moat as evidenced by intense competition and low margins.

Macro Economic Sensitivity

Highly sensitive to government infrastructure spending and power sector reforms. A slowdown in State Electricity Board (SEB) capex would directly reduce order inflow.

Consumer Behavior

Shift toward EPC-led procurement in the power sector is forcing manufacturers to offer more integrated product solutions.

Geopolitical Risks

Indirect exposure through global steel price fluctuations which are influenced by international trade policies and geopolitical tensions.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to pollution control board norms in West Bengal and Odisha, and quality standards mandated by PGCIL and State Electricity Boards.

Environmental Compliance

Maintains ISO 14001:2015 (Environmental Management) and OHSA 18001:2007 (Occupational Health and Safety) certifications for its plants.

Taxation Policy Impact

Not specifically disclosed, but follows standard Indian corporate tax rates.

Legal Contingencies

The company reported no penalties or strictures imposed by capital market regulators in the last three years. No specific pending litigation values were disclosed.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the 'Issuer Not Cooperating' status with Infomerics and Acuite, which creates a 100% risk of credit access issues despite the CRISIL rating. Raw material price volatility poses a significant risk to the 1.33% net margin.

Geographic Concentration Risk

100% of manufacturing assets are located in West Bengal and Odisha, making the company vulnerable to regional economic or regulatory shifts in these two states.

Third Party Dependencies

High dependency on State Electricity Boards for revenue; any delay in government payments could stretch the working capital cycle.

Technology Obsolescence Risk

Low risk as steel wire manufacturing is a mature technology, but failure to upgrade to high-efficiency conductors could lose market share in the EPC segment.