Rajratan Global Wire Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Rajratan Global Wire Ltd filed with BSE on 29 Apr 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Rajratan Global Wire reported its highest ever sales tonnage in FY26, with volumes up 18% year-on-year to more than 133,000 tons, though Q4 EBITDA margin declined due to a sharp rise in steel and energy prices that could not be immediately passed on to customers. Management said the raw material price increase has since been passed on to customers and expects margins to recover to 13-14% in the current quarter. The company guided for 17-18% volume growth in FY27, driven by capacity expansion at its Chennai plant and a new steel cord project in Indore.
Numbers mentioned
Total sales volume: more than 133,000 tons (FY26)
p. 3
“We have done more than 133,000 tons of total sales from three locations.”
Sunil Chordia, page 3 of the filed PDF · View the filing
Sales volume growth: 18% (FY26 year-on-year)
p. 3
“Our sales on the year-on-year basis have increased by 18%.”
Sunil Chordia, page 3 of the filed PDF · View the filing
Steel price increase: INR10,000 a ton (January to March 2026)
p. 3
“So from January till March, the prices went up by almost INR10,000 a ton, which we could not pass on to the customer.”
Sunil Chordia, page 3 of the filed PDF · View the filing
Chennai plant utilization: 85% to 90% (Q4 FY26)
p. 4
“So, last quarter Chennai utilized capacity almost 85% to 90%.”
Sunil Chordia, page 4 of the filed PDF · View the filing
Tyre segment market share: 42% to 43%
p. 4
“And in tyre sector, our market share has again reached to 42% to 43%, which had come down to 35% to 37%.”
Sunil Chordia, page 4 of the filed PDF · View the filing
Steel cord capex invested: INR55 crores
p. 5
“In the steel cord, we have already invested around INR55 crores, I think INR45 crores to INR50 crores and we will require another INR25 crores to complete that capex.”
Sunil Chordia, page 5 of the filed PDF · View the filing
India sales volume growth: 19% (FY26)
p. 6
“I think we have given. We have grown 19% in sales volume in India, we have grown 17% in Thailand and overall consolidated growth in volume is about 18%.”
Sunil Chordia, page 6 of the filed PDF · View the filing
India export volume: more than 9,000 tons (FY26)
p. 9
“It is little more than 9,000 tons volume. Balance is from Thailand.”
Yashovardhan Chordia, page 9 of the filed PDF · View the filing
Steel cord plant capacity: 10,000 tons a year
p. 8
“The total capacity of this plant is 10,000 tons a year and the generation at current level of pricing, the top line possible from this investment is around INR150 crores.”
Sunil Chordia, page 8 of the filed PDF · View the filing
Steel cord EBITDA margin: around 20%
p. 9
“Right now, what others are selling, the current sales and if we look at financials, the EBITDA margin as of today are around 20%.”
Sunil Chordia, page 9 of the filed PDF · View the filing
Term loan repayment: INR50 crores (FY26)
p. 9
“But we have paid around INR50 crores of term loan in the current year also.”
Sunil Chordia, page 9 of the filed PDF · View the filing
Other wire volume: 14,000 tons (FY26)
p. 12
“Which is 14,000 tons, which was 14,000 tons in Indore factory.”
Sunil Chordia, page 12 of the filed PDF · View the filing
Chennai capex: INR25 crores (FY27)
p. 5
“And Chennai this year will be close to INR25 crores to complete the capacity to 60,000 tons.”
Sunil Chordia, page 5 of the filed PDF · View the filing
Raw material consumption percentage: from 57% to 63% (Q4 FY26)
p. 20
“If you look at our raw material consumption percentage from 57% has gone to 63% in the current quarter.”
Sunil Chordia, page 20 of the filed PDF · View the filing
EBITDA margin impact from raw material: about 4%, 4.5% (Q4 FY26)
p. 20
“I told you it is about 4%, 4.5% in the EBITDA margin.”
Sunil Chordia, page 20 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Volume growth — 17% to 18% · FY27
stated conditionally by Sunil Chordia
p. 3
“So I can say that this year should be another growth year for Rajratan and we target to grow our business in volume by around 17% to 18% in the current year also.”
Sunil Chordia, page 3 of the filed PDF · View the filing
Thailand volume growth — 10% to 14% · FY27
stated firmly by Sunil Chordia
p. 7
“Yes, I can tell you. Thailand we are not expecting 20%, we are expecting around 10% to 14% because there is a capacity constraint in Thailand.”
Sunil Chordia, page 7 of the filed PDF · View the filing
Total sales volume — 155,000 tons · FY27
stated conditionally by Sunil Chordia
p. 7
“So next year you can estimate a 155,000 tons of total sales if things remain normal globally.”
Sunil Chordia, page 7 of the filed PDF · View the filing
North America growth — around 30% · FY27
stated as an aspiration by Sunil Chordia
p. 7
“But we have a plan to grow around 30% in North America I can tell you.”
Sunil Chordia, page 7 of the filed PDF · View the filing
Europe growth — around 50% · FY27
stated as an aspiration by Sunil Chordia
p. 7
“And some growth in Europe, which will be around 50% and Southeast Asia 10%, 15% because we were supplies in South Asia for many, many years.”
Sunil Chordia, page 7 of the filed PDF · View the filing
EBITDA margin — 13%, 13.5% · current quarter (Q1 FY27)
stated conditionally by Sunil Chordia
p. 8
“So you will see the margin coming back to 13%, 13.5% in the current quarter itself if everything remains normal.”
Sunil Chordia, page 8 of the filed PDF · View the filing
India export volume — about 15,000 tons · FY27
stated as an aspiration by Yashovardhan Chordia
p. 9
“Next year probably we are expecting to touch about 15,000 tons of export from India.”
Yashovardhan Chordia, page 9 of the filed PDF · View the filing
Consolidated EBITDA margin — 13.5% to 14%
stated as an aspiration by Sunil Chordia
p. 6
“You can continue to assume that we will be able to maintain this EBITDA level 13.5% to 14% safely.”
Sunil Chordia, page 6 of the filed PDF · View the filing
Long-term loan — less than INR50 crores · FY27
stated firmly by Sunil Chordia
p. 17
“Long-term loan will be less than INR50 crores this year because repayment has to be done that much.”
Sunil Chordia, page 17 of the filed PDF · View the filing
Chennai sales volume — 34, 35 thousand tons · FY27
stated firmly by Sunil Chordia
p. 16
“34, 35, yes.”
Sunil Chordia, page 16 of the filed PDF · View the filing
PLI benefit — 8% on incremental sales, INR40-50 crores over 5 years · 5 years
stated conditionally by Sunil Chordia
p. 11
“8% on sales, incremental sales every year. 8% from Chennai. Total quantum will be INR40 crores to INR50 crores in 5 years’ time.”
Sunil Chordia, page 11 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said export markets remain robust despite shipping disruptions, with growth in Europe and strong demand continuing in the American market.
Answered by Yashovardhan Chordia
Asked by Sanjay Shah: What is the export business opportunity region-wise for bead wire and non-tyre segments globally?
p. 4
“Also in American market, the demand still continues to be robust.”
Yashovardhan Chordia, page 4 of the filed PDF · View the filing
Management said Chennai will be expanded to 60,000 tons capacity by Q2 FY27 with plans to sell around 35,000 tons this year.
Answered by Sunil Chordia
Asked by Sanjay Shah: What is the plan for the Chennai plant capacity and capex?
p. 4
“That is why we decided to put in the money for balance equipment and some equipments have started arriving and we will become a 60,000 tons capacity plant by second quarter of this financial year.”
Sunil Chordia, page 4 of the filed PDF · View the filing
Management confirmed gross margin percentage would be maintained, with absolute numbers higher due to higher prices.
Answered by Sunil Chordia
Asked by Preet Pitani: Will the entire raw material cost increase be passed on, restoring gross margin?
p. 5
“It will be little more because in percentage we will be able to maintain gross margin.”
Sunil Chordia, page 5 of the filed PDF · View the filing
Management explained the increase was due to costs booked in the new USA subsidiary's balance sheet, not Thailand.
Answered by Sunil Chordia
Asked by Preet Pitani: Why did other expenses increase significantly this quarter and full year?
p. 6
“So there is a cost of around INR30 crores which is for six months wherein we have been supplying to USA on a FOB basis because the import duty in USA is on the FOB cost of the product and the US company pays for the shipping cost and logistics cost.”
Sunil Chordia, page 6 of the filed PDF · View the filing
Management said the margin dip was due to sudden raw material price increases which have now been passed on, and margins should recover in the current quarter.
Answered by Sunil Chordia
Asked by Vinit Thakur: When will margins revert to the 13-14% level discussed earlier?
p. 8
“Yes. So as told you in the earlier question, the margin dip is purely because of the sudden increase in wire rod price in January, February, March, which we have been able to pass on to customers in the current quarter April, May, June.”
Sunil Chordia, page 8 of the filed PDF · View the filing
Management stated exports from India were slightly more than 9,000 tons in FY26.
Answered by Sunil Chordia
Asked by Bhargav Buddhadev: What was India's export volume in FY26?
p. 9
“Total volume I can tell you from India we have done I think close to 9,000 tons this year.”
Sunil Chordia, page 9 of the filed PDF · View the filing
Management explained Thailand operations get income tax exemption above 36,000 tons of sales under BOI privileged status, lowering the effective tax rate.
Answered by Pranay Jain
Asked by Preet Pitani: Why was the tax rate low this quarter?
p. 11
“So in Thailand we are getting exemption on income tax after sales of 36,000 tons.”
Pranay Jain, page 11 of the filed PDF · View the filing
Management said they missed production targets in the first two years and PLI approval is uncertain, and it is not included in projections.
Answered by Sunil Chordia
Asked by Preet Pitani: What is the status of the PLI scheme benefit?
p. 11
“But we could not achieve first year target -- targeted production as committed to them and second year targeted production was also not achieved because first year was missed.”
Sunil Chordia, page 11 of the filed PDF · View the filing
Management said competitors are already losing heavily at current prices and it is difficult to predict further price cuts, but the company has sustained its margin for four years despite competition.
Answered by Sunil Chordia
Asked by Preet Pitani: Can the company maintain 13-14% margin if competitors' excess capacity pressures pricing?
p. 12
“If competition decides to further reduce the price, to our understanding they are already losing heavily at this price.”
Sunil Chordia, page 12 of the filed PDF · View the filing
Management said 13-14% margin guidance is a middle-ground estimate, neither overly optimistic nor pessimistic.
Answered by Sunil Chordia
Asked by Shashank Kanodia: Are there drivers for margin improvement given new capacity and product portfolio optimization?
p. 14
“We are not too optimistic about 18% to 20%, but we are also not pessimistic about 11, 12%. We should be making a decent margin of 13%, 14%.”
Sunil Chordia, page 14 of the filed PDF · View the filing
Management said no negative impact has been seen yet, though customers are cautious about a potential slowdown.
Answered by Sunil Chordia
Asked by Shashank Kanodia: What is the demand outlook from tyre players amid auto slowdown concerns?
p. 15
“When we meet our customers everybody is keeping fingers crossed, but up till now, there is no negative impact.”
Sunil Chordia, page 15 of the filed PDF · View the filing
Management said tariffs under Section 232 apply equally to all countries, so the company remains at par with competitors and has passed on the tariff cost.
Answered by Sunil Chordia
Asked by Maitri Shah: How has the US tariff affected sales and volumes?
p. 18
“Tariffs have not affected the volume or the business because tariff we are under Section 232 where US has put tariff against all the imports, whether it is coming from India or Thailand or China or Mexico.”
Sunil Chordia, page 18 of the filed PDF · View the filing
Management quantified the impact at about 4-4.5% of EBITDA margin, with raw material consumption rising from 57% to 63% of costs.
Answered by Sunil Chordia
Asked by Saket Kapoor: What is the absolute EBITDA impact from the raw material increase not passed on?
p. 20
“I told you it is about 4%, 4.5% in the EBITDA margin.”
Sunil Chordia, page 20 of the filed PDF · View the filing
Risks flagged
Sudden increase in steel/raw material prices that could not be immediately passed on to customers
p. 3
“There was a sudden increase in steel prices beginning from January.”
Sunil Chordia, page 3 of the filed PDF · View the filing
Energy availability and price difficulties affecting margins
p. 3
“Coupled with that, the availability and the price of energy was a difficulty, which also affected the EBITDA margin particularly in this quarter.”
Sunil Chordia, page 3 of the filed PDF · View the filing
Shipping disruption from Thailand plant due to geopolitical volatility
p. 4
“But overall, the development of export market remains robust for us.”
Yashovardhan Chordia, page 4 of the filed PDF · View the filing
Shortage of raw material affecting ability to meet delivery timelines
p. 5
“And currently we are seeing that there is a pressure on the dispatches. We are not able to meet the demand of customers to supply them on time because there is a shortage of raw material also.”
Sunil Chordia, page 5 of the filed PDF · View the filing
Possibility of another geopolitical or war event disrupting normal business assumptions
p. 5
“So you cannot -- you have to keep your fingers crossed that no other war, another issue.”
Sunil Chordia, page 5 of the filed PDF · View the filing
Longer working capital cycle due to export credit terms
p. 5
“So that credit cycle has become bigger.”
Sunil Chordia, page 5 of the filed PDF · View the filing
Industry-wide raw material availability issues affecting competitors as well
p. 10
“I heard that everybody in the wire industry is having raw material issue.”
Sunil Chordia, page 10 of the filed PDF · View the filing
Excess industry capacity relative to demand leading to competitive pricing pressure
p. 15
“Currently capacity is much more than the demand. So there is a competition and some of the companies globally are also whether they will survive or not is not clear.”
Sunil Chordia, page 15 of the filed PDF · View the filing
Potential slowdown in auto sales due to supply chain issues and OEM price hikes
p. 15
“And sir, lastly, there is a fear that the auto sales might slow down because of some supply chain issues as well as price hike from the OEMs.”
Shashank Kanodia, page 15 of the filed PDF · View the filing
Shipping congestion at Singapore and Colombo ports increasing lead times
p. 15
“No, as of today other than shipping lead times have increased and there is congestion at Singapore port, there's congestion at the Colombo port.”
Yashovardhan Chordia, page 15 of the filed PDF · View the filing
Uncertainty over trade policy and geopolitical decisions affecting demand
p. 15
“And then lot of it depends on Mr. Trump.”
Sunil Chordia, page 15 of the filed PDF · View the filing
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