Ram Ratna Wires Q3 FY26 – ₹1,278 Cr Quarterly Revenue, 106% Profit Jump, and a Copper-Fuelled Growth Hangover

1. At a Glance

Ram Ratna Wires Limited just dropped its Q3 FY26 numbers, and honestly, this one feels like a factory running at full speed with the electricity bill sweating in the corner. The stock is hovering around ₹296, market cap roughly ₹2,766 crore, and the last three months haven’t exactly been a party (-4.8%), but the latest quarter profit growth of 106% YoY is screaming for attention.

Quarterly revenue clocked in at ₹1,278 crore, up 43.8% YoY, while PAT jumped to ₹33.9 crore. ROCE sits at ~20%, which is respectable for a copper-heavy, low-margin manufacturing business where raw material prices can change mood faster than a budget WhatsApp group.

But here’s the twist: despite all this topline fireworks, operating margins are still in the 4–6% zone. This is not a luxury brand story. This is volume, efficiency, scale, and capex-induced stress management.

Debt stands at about ₹627 crore, debt-to-equity ~1.24, and interest coverage ~2.8x. Translation: the company is expanding aggressively, but the balance sheet is doing yoga to keep flexibility.

So the big question before we dive deeper:
Is Ram Ratna Wires becoming a copper compounder, or just running faster on the same treadmill?

2. Introduction

If India’s electrical and appliance ecosystem were a Bollywood movie, Ram Ratna Wires would not be the hero dancing on Swiss mountains. It’s the background character who makes sure the lights stay on during the climax scene.

Winding wires are not sexy. Nobody flexes about enamelled copper wires at a wedding. But every motor, transformer, fan, EV drivetrain, AC compressor, and industrial machine needs them. And Ram Ratna Wires happens to be the second-largest winding wire manufacturer in South Asia.

This is a company that thrives on scale, OEM relationships, and operational discipline, not brand recall. About 70–75% of its products go directly to large OEMs, which means predictable volumes but zero pricing swagger. You don’t negotiate with Honda or Tata Motors by sending motivational quotes.

FY25 sales touched ₹4,381 crore, and the company has compounded revenue at ~20% over five years. Profits have grown too, though in a more erratic fashion thanks to copper prices, capex cycles, and interest costs.

Now, with new plants, a PLI-backed copper tube expansion, a JV in motors, and a merged copper tube subsidiary, the company is clearly trying to move up the value chain.

But here’s the investor dilemma:
Does more capacity + more products automatically mean more shareholder happiness?

3. Business Model – WTF