Rajratan Global Wire Limited (RAJRATAN) share price

₹444.25 on NSE as of 2026-10-08. -3.55% on the day. market cap ₹2,256 Cr. P/E 28.3. 52-week range ₹309.00 to ₹540.05. Automobile and Auto Components.

rajratan.co.in

Rajratan Global Wire Q1 FY27: ₹318 Cr Revenue, ₹42 Cr Operating Profit, and a Bead Wire Business That Sells One Thing

At a glance

Rajratan Global Wire makes bead wire, the high-carbon steel ring that clamps a tyre onto its rim. Consolidated revenue for the three months to June 2026 was ₹318 crore, against ₹247 crore a year earlier. Operating profit came to ₹42 crore, against ₹31 crore in the same quarter. Net profit was ₹23 crore, against ₹14 crore a year earlier. Earnings per share, or the profit attached to each share, was ₹4.52 for the quarter. The rise in net profit works out at 70 per cent.

Operating margin was 13 per cent, against 9 per cent three months earlier. Management attributes that earlier squeeze to the price of wire rod, the steel the company draws into wire. It says wire rod rose by roughly ₹10,000 a tonne between January and March. Management states the company could not pass that cost to customers inside the quarter. It adds that the cost increase has since been passed through across steel, consumables and energy.

Sales volume totalled 33,300 tonnes for the quarter, against 28,634 tonnes a year earlier. The Indian plants supplied 19,710 tonnes of that, and Thailand supplied 13,590 tonnes. Volume grew 16 per cent while revenue grew 29 per cent. Management attributes the gap to a richer customer mix and better realisations, meaning a higher average price per tonne. The company makes exactly one thing, and has been making exactly one thing for 37 years.

On 2 July 2026, Crisil, a credit-rating agency, revised the outlook on the company's long-term bank facilities to Stable from Negative. It reaffirmed the long-term rating at Crisil A+ and the short-term rating at Crisil A1. Crisil calls liquidity strong, pointing to a current ratio of 1.21 times. That ratio weighs short-term assets against bills falling due within the year. Crisil also cites unencumbered cash and equivalents of ₹22.51 crore as on 31 March 2026.

Introduction

Sunil Chordia incorporated the company as Rajratan Wires Pvt Ltd in 1988. It moved out of steel trading and into bead wire in 1989, and has stayed there since. Commercial production began in 1991, and the present name was adopted in 2004. Manufacturing sits at Pithampur in Madhya Pradesh and at Chennai in Tamil Nadu. A wholly owned subsidiary, Rajratan Thai Wire Company Ltd, carries the operation in Thailand. A second wholly owned subsidiary, Rajratan Wire USA Inc, was approved in January 2024. It now sits inside the consolidated accounts.

Installed capacity at Pithampur is 72,000 tonnes a year, of which 60,000 tonnes is bead wire. Thailand adds another 60,000 tonnes a year. Chennai runs at 30,000 tonnes a year of an eventual 60,000 tonnes. Commercial production at the Chennai unit at Sriperumbudur began in August 2024, on a site built from bare ground. Management states that Chennai crossed breakeven in the three months to March 2026. It says the unit contributed positively in the quarter that followed. Management expects Chennai to reach 60,000 tonnes a year by the three months to September 2026. It puts the cost of getting there at roughly ₹25 crore.

The second project is steel cord for conveyor belts, at Pithampur. It is 10,000 tonnes a year, converted from existing black wire capacity. Management is explicit that this is not tyre steel cord. It describes the product as a niche item within a niche market. Management puts the global market for it at roughly 70,000 to 80,000 tonnes. Total spending on the project is around ₹70 crore, of which roughly ₹50 crore has gone out. Trials are targeted for the three months to September 2026. The plant is due to enter the books as an asset in the three months to December 2026. Management expects meaningful revenue from the financial year after that.

In May 2026, the Thai subsidiary bought 2.42 acres of land next to its existing plant. The plot at Ratchaburi carries a building of 3,053.5 square metres. In January 2026, the board approved the re-appointment of Yashovardhan Chordia as chief executive and deputy managing director. The term runs from 21 April 2026 to 20 April 2029, subject to shareholder approval.

Business model

Inside every tyre is a ring of high-carbon steel wire that clamps the tyre to the rim. That ring is bead wire, and Rajratan makes it. There is no second act hiding in a footnote and no fintech subsidiary. The wire is drawn to narrow tolerances and coated in a bronze chemistry tuned to bond with rubber. It is sold by the tonne to the people who make tyres. The company also draws high-carbon steel wire, known as black wire, for automotive, construction and engineering uses. Even the diversification is wire.

The product is safety-critical, and it is a small share of what a tyre costs. Tyre plants run qualification cycles lasting years before taking on a new supplier. Switching supplier means re-qualifying every tyre model in the range. Crisil, a credit-rating agency, cites long product approval phases as a barrier to entry. It also cites the high cost of building fresh capacity. The company's own framing is blunter: a bead wire order is a trust decision made once and honoured over a decade.

The customer list names MRF, Apollo Tyres, CEAT and JK Tyre. It also names TVS Eurogrip, Bridgestone, Yokohama and Sumitomo. Hankook and Chengshan appear on it as well. Management puts the company's share of the Indian tyre segment at 42 to 43 per cent. It says that share was roughly 35 to 37 per cent earlier. Management cites a historical peak of 43 to 44 per cent. In Thailand the company is the only bead wire manufacturer in the country.

India accounted for 61 per cent of revenue in the three months to June 2026. Thailand accounted for another 35 per cent of that quarter's revenue. The segment disclosure splits it differently, at ₹174 crore within India and ₹145 crore for the rest of the world. Exports run at 15 to 20 per cent of revenue. They go to the United States, Europe, Sri Lanka and Vietnam. Finland, Sweden and Indonesia also take shipments. The US entity buys on an FOB basis, which means it carries the freight cost itself. That cost lands in the consolidated other expenses line, which has grown a personality of its own. Management notes roughly ₹30 crore of such cost booked in the US entity for the six months to March 2026. The auditors did not need a second column: the filing identifies one operating segment, named Tyre Bead Wire.

Quarterly results, balance sheet, cash flow, ratios, shareholding and the filings themselves are on the full page for Rajratan Global Wire Limited.

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