RAMRAT - Ram Ratna Wires

📊 NSE: RAMRAT 🏢 Mining / Minerals / Metals 📅 Last Updated: 12/14/2025 11:35

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 23.24% to INR 3,677 Cr in FY25. Standalone revenue (primarily winding wires and copper tubes) grew 22.42% to INR 3,623 Cr. H1 FY26 consolidated revenue grew 33.1% YoY to INR 2,045.1 Cr.

Profitability Margins

Standalone Operating Profit Margin was 4.13% and Net Profit Margin was 1.98% in FY25. Consolidated PAT margin remained stable at 1.9% in FY25 and H1 FY26.

EBITDA Margin

Consolidated EBITDA margin improved from 4.0% to 4.3% in FY25. H1 FY26 EBITDA margin was 4.4%, up from 4.4% in the previous period, with absolute EBITDA growing 31.0% to INR 89.3 Cr.

Capital Expenditure

Historical CapEx for FY25 was approximately INR 268.0 Cr, primarily driven by the substantial investment in the new manufacturing facility at Bhiwadi, Rajasthan.

Credit Rating & Borrowing

The company maintains a CARE A-; Stable rating. Total consolidated borrowings as of March 31, 2025, were INR 296.2 Cr (INR 191.0 Cr non-current and INR 105.2 Cr current).

⚙️ Operational Drivers

Raw Materials

Copper cathode and copper scrap represent the primary raw material costs, as the company operates as a converter in the winding wires and copper tubes segments.

Capacity Expansion

The company is expanding capacity through a new manufacturing facility at Bhiwadi, Rajasthan, to leverage growing demand in electrification and smart infrastructure.

Raw Material Costs

Raw material costs are a significant portion of revenue given the low value-addition converter model; fluctuating copper prices directly impact production costs and pricing viability.

Manufacturing Efficiency

Inventory turnover ratio improved from 14.80 to 16.19 in FY25, indicating enhanced operational efficiency.

📈 Strategic Growth

Expected Growth Rate

25%

Growth Strategy

Growth will be achieved through the operationalization of the new Bhiwadi facility, the acquisition of a 64% stake in Tefabo Products Private Limited to enter the renewable energy fabrication segment, and leveraging India's electrification and smart infrastructure trends.

Products & Services

Winding wires, copper tubes, fans, submersible pumps, and fabricated components and assemblies for the renewable energy sector.

Brand Portfolio

RR Shramik.

New Products/Services

Advanced copper products and fabricated components for renewable energy through the Tefabo subsidiary.

Market Expansion

Expansion into the Rajasthan region via the Bhiwadi facility and increased focus on the renewable energy value chain.

Strategic Alliances

Maintains a Joint Venture which contributed a share of profit/loss of INR -1.1 Cr in FY25.

🌍 External Factors

Industry Trends

The industry is shifting toward electrification, smart infrastructure, and sustainable industrial development, growing at approximately 22-23% annually.

Competitive Landscape

Faces aggressive competition from both global and regional players investing in high-tech copper products.

Competitive Moat

Moat is based on scale and established presence in the winding wire market; however, sustainability is challenged by low value-addition and high competitive intensity.