RAJMET - Rajnandini Metal

📊 NSE: RAJMET 🏢 Mining / Minerals / Metals 📅 Last Updated: 12/14/2025 11:32

💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations for FY25 was INR 1,033.58 Cr, representing a 14.75% YoY decline from INR 1,212.43 Cr in FY24. The company operates in trading (scrap) and manufacturing (copper rods/wires), with manufacturing starting in November 2019.

Profitability Margins

The company reported a net loss of INR 2.17 Cr in FY25 compared to a profit of INR 15.24 Cr in FY24. Net profit margin for FY25 was approximately -0.21%.

EBITDA Margin

PBILDT margin declined significantly to 0.32% in FY25 from 1.77% in FY24. Q1 FY26 PBILDT margin was reported at 0.81%.

Capital Expenditure

Not disclosed in absolute INR Cr for the current period; however, the company established its manufacturing unit in November 2019.

Credit Rating & Borrowing

The company's credit profile is impacted by a qualified audit report. Overall gearing was 0.78x as of March 31, 2025, compared to 1.77x as of March 31, 2024. Interest coverage ratio weakened to 0.25x in FY25 from 1.89x in FY24.

⚙️ Operational Drivers

Raw Materials

Copper scrap is the primary raw material, accounting for approximately 90% of the total raw material cost.

Capacity Expansion

The manufacturing unit was started in November 2019; specific installed capacity in MT or units is not disclosed.

Raw Material Costs

Cost of materials consumed in FY25 was INR 1,033.71 Cr, representing 100% of revenue from operations, down from INR 1,157.86 Cr in FY24.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

The company aims to achieve growth through human resource empowerment, leadership mentoring, and skill upgradation in Sales, Finance, and Purchase functions. It leverages repeat business from key customers like Kei Industries Ltd. and Svarn Infratel Private Limited.

Products & Services

Copper rods, copper wires, cables, and metal scrap (copper wires, ingot scrap, and other ferrous/non-ferrous metals).

Brand Portfolio

Rajnandini Metal Limited (RAJMET).

🌍 External Factors

Industry Trends

The industry is evolving with rapid changes in the winding wire segment. The company is positioned as a manufacturer of copper rods and wires, transitioning from a pure trading model since 2019.

Competitive Landscape

The company competes in the non-ferrous metals and copper industry; specific competitor names are not listed.

Competitive Moat

The company's moat is based on established relationships with suppliers and key customers like Kei Industries, though this is challenged by low profitability margins (0.32% PBILDT).

Macro Economic Sensitivity

The business is sensitive to changes in legal, fiscal, and regulatory regimes in India, which can affect competitiveness and performance.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to GST regulations and Income Tax search/seizure protocols. The company is currently under investigation by GST authorities regarding ineligible input credit.

Taxation Policy Impact

The company is contesting an Income Tax demand of INR 16.98 Cr. Current tax provision for FY25 was INR 0.18 Cr.

Legal Contingencies

Pending GST demand of INR 290.70 Cr (including penalty and interest) and Income Tax demand of INR 16.98 Cr. Enforcement Directorate (ED) has issued summons to promoters regarding financial transactions with a company under investigation.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the potential liability of INR 307.68 Cr from tax authorities, which significantly exceeds the company's net worth and annual revenue.