RAJRATAN - Rajratan Global Wire Ltd Share Price

Management has provided an optimistic outlook for Rajratan Global Wire Limited, projecting robust growth in FY27 despite facing challenges due to rising raw material prices and global geopolitical issues. The company achieved its highest-ever sales tonnage in FY26, with an 18% year-on-year increase, totaling over 133,000 tons.

The management expects to grow sales volumes by 17% to 18% in the current year, setting a target of approximately 155,000 tons, driven primarily by improvements in the Chennai plant, which is ramping up capacity to 60,000 tons. The Chennai facility utilized 85%-90% of its capacity last quarter and aims to sell around 35,000 tons in FY27. Additionally, the management indicated that the EBITDA margin would potentially recover to the range of 13.5% to 14% as price adjustments have been made to reflect increased raw material costs.

Key forward-looking points include:

1. Sales Growth Targets: A consolidated volume growth of 17%-18% for FY27, with expectations of 10%-14% growth in Thailand and higher contributions from India.
2. Chennai Plant Capacity Increase: Expansion to 60,000 tons expected by Q2 FY27.
3. Investment in Capex: Approximately INR 70 crores invested in steel cord manufacturing, with trials expected to start in Q2 FY27 and revenue potential of INR 150 crores by FY29.
4. Market Share Recovery: The company's market share has improved to 42%-43%, from a previous dip, reflecting strong positioning in the competitive landscape.
5. Response to Raw Material Prices: They anticipate recovering margins now that prices have been passed onto customers, improving profitability moving forward.

Overall, management remains confident about maintaining growth and margins, provided no significant external disruptions occur in the market environment.

Q&A Section of Rajratan Global Wire Limited Earnings Call (April 22, 2026)

Question 1: Can you please highlight and talk about exports business opportunity region-wise for our bead wire and even some non-tyre segment globally?

Answer:
Yashovardhan Chordia: The only impact we've seen is disruption in shipping, especially from Thailand. However, the export market remains robust. We've secured approvals from many companies in Europe and continue to supply them regularly. While we've faced delays in shipping, demand in the American market remains strong.

Question 2: Can you share the utilization and capacity prospects for the Chennai plant, including any required capex?

Answer:
Sunil Chordia: Last quarter, Chennai operated at about 85%-90% utilization, producing around 2,200 tons per month. We're investing in additional equipment to boost capacity to 60,000 tons by Q2 of this financial year, with a capex of around INR 25 crores.

Question 3: Can we expect a margin uptick this year given the rising raw material and energy prices?

Answer:
Sunil Chordia: We've managed to pass on the price increases for steel and other consumables to our customers. By the end of the month, we anticipate smoother production and sales. Assuming normal conditions, we expect margins to stabilize and improve to 13-14% this year.

Question 4: In FY26, how much was the total volume exported from India? What are the expectations for FY27?

Answer:
Sunil Chordia: Exports from India exceeded 9,000 tons in FY26. For FY27, we expect to increase this to approximately 15,000 tons, depending on capacity and demand.

Question 5: What volume growth do you expect from different regions in FY27, including India, Thailand, and the USA?

Answer:
Sunil Chordia: In FY27, we forecast around 19% growth in sales volume in India, and 10-14% growth in Thailand, primarily due to capacity constraints. This consolidated approach aims for total sales around 155,000 tons if market conditions remain favorable.

Question 6: How does your EBITDA margin differ between India, Thailand, and the USA?

Answer:
Sunil Chordia: The EBITDA margins vary due to different pricing and logistical costs across regions. Overall, we aim to maintain a consolidated EBITDA margin of about 13.5-14%.

Question 7: What is the current status of your steel cord and wire rope projects?

Answer:
Sunil Chordia: We expect to start trials for steel cord production in Q2 FY27. With a total capacity of 10,000 tons, we estimate INR 150 crores in revenue at peak utilization, which should be achieved by FY29.

Question 8: Are short-term borrowings anticipated to remain high for the next couple of years?

Answer:
Sunil Chordia: Yes, we're likely to maintain a higher level of short-term loans to support working capital as we grow our business. We believe borrowing at a lower interest rate is beneficial compared to diluting equity.

Question 9: Can you elaborate on the impact of tariffs on your US sales?

Answer:
Sunil Chordia: Tariffs have not adversely affected our volume or business since we're under Section 232, which applies uniformly to all imports. We are able to pass these extra costs to customers while maintaining sales.

Question 10: Regarding the PLI (Production Linked Incentive), what is the current status?

Answer:
Sunil Chordia: We are pursuing the PLI from the Steel Ministry, but due to missed targets in previous years, there's uncertainty regarding approval. If granted, it could provide 8% on incremental sales over five years, totaling around INR 40-50 crores.