PRECWIRE - Prec. Wires (I)

📊 NSE: PRECWIRE 🏢 Mining / Minerals / Metals 📅 Last Updated: 12/14/2025 11:13

💰 Financial Performance

Revenue Growth by Segment

Round wire segment contributed ~75% of revenue with realisations of INR 7.9 lakh/MT in FY24. PICC and CTC segments together accounted for 20% of total revenue. Revenue from value-added products increased by ~80% YoY in 1HFY26.

Profitability Margins

Gross margins improved to 10.0% in 1HFY26 from 8.4% YoY. Net profit margins are projected to rise as PAT is expected to grow at a 38% CAGR from FY25 to FY28E, reaching INR 243.8 Cr.

EBITDA Margin

EBITDA margin was 4.1% in FY25 and is projected to expand to 6.5% by FY28E, a 240 bps improvement driven by backward integration and a shift toward value-added products.

Capital Expenditure

Historical capex was INR 102.2 Cr in FY25. Planned capex for FY27E is significantly higher at INR 205.9 Cr to complete winding wire expansion and a copper refining/recycling plant.

Credit Rating & Borrowing

Long-term rating reaffirmed at CARE A+; Stable and short-term rating at CARE A1 as of January 2025. Interest coverage ratio stood at 4.02x in FY24.

⚙️ Operational Drivers

Raw Materials

Copper Cathode represents the primary raw material, with raw material costs accounting for ~90% of total sales in recent quarters.

Import Sources

Approximately 12% of raw materials are imported, exposing the company to foreign exchange fluctuations.

Capacity Expansion

Current installed capacity increased from 39,400 TPA to 49,000 TPA by March 2024. Ongoing expansion includes a copper refining and recycling plant to improve backward linkages.

Raw Material Costs

Raw material costs were INR 1,110 Cr in a recent quarter, up 21% YoY. The company uses a back-to-back order mechanism to pass through copper price volatility to customers.

Manufacturing Efficiency

Capacity utilization stood at 86% in FY24. Tolling margins improved from INR 60,000 per tonne in FY22 to INR 78,000 per tonne in FY23.

📈 Strategic Growth

Expected Growth Rate

16%

Growth Strategy

Growth will be achieved through a 16% Revenue CAGR (FY25-28E) driven by capacity expansion to 49,000+ TPA, backward integration via a new copper recycling plant to capture higher margins, and doubling the share of value-added products like CTC and PICC in the portfolio.

Products & Services

Enameled Round Copper Wires, Rectangular Enameled Winding Wires, Paper Insulated Copper Conductors (PICC), and Continuous Transpose Conductors (CTC).

Brand Portfolio

PRECWIRE

New Products/Services

Expansion into higher value-added rectangular enameled winding wires and CTC, expected to double their revenue share over the next three years.

Market Expansion

Increasing penetration into the Electric Vehicle (EV) and hybrid vehicle segments to support growing demand for specialized winding wires.

Market Share & Ranking

Established market leader in the organized copper winding wire industry in India.

🌍 External Factors

Industry Trends

The industry is evolving with a shift toward EVs and high-efficiency motors, growing at a steady pace. PWIL is positioning itself by expanding capacity in value-added products like CTC for transformers.

Competitive Landscape

Intense competition from a fragmented market of small and medium unorganized players, though PWIL maintains an edge with reputable OEM clients.

Competitive Moat

Moat is based on long-standing OEM relationships (20+ years) and scale of operations, which are sustainable due to high switching costs for technical approvals in the power and auto sectors.