🟢 At a Glance:
Kataria Industries (NSE: KATARIA) just dropped its H2 FY25 results — and they’re flexing. The company clocked in ₹210 Cr in revenue (up 36% YoY) and a ₹5.63 Cr PAT (up 39%). That’s not all — they’ve acquired the Wire Division of Ratlam Wires Pvt Ltd, giving them a fresh coil of growth in the steel wire segment. 🧵💥
📊 Key Financials (H2 FY25 vs H2 FY24)
| 💼 Metric | H2 FY25 | H2 FY24 | YoY Change |
|---|---|---|---|
| Revenue | ₹21,001 lakh | ₹15,452 lakh | 🔼 36% |
| Expenditure | ₹20,283 lakh | ₹14,835 lakh | 🔼 37% |
| PBT | ₹718 lakh | ₹617 lakh | 🔼 16% |
| PAT | ₹563 lakh | ₹405 lakh | 🔼 39% |
| PAT Margin | 2.68% | 2.62% | 🔼 +6 bps |
👀 PBT margin dipped YoY from 3.99% to 3.42%, but higher volumes saved the day.
🧩 Full-Year Snapshot (FY25 vs FY24)
| FY Metric | FY25 | FY24 | % Change |
|---|---|---|---|
| Revenue | ₹352 Cr | ₹341.5 Cr | 🔼 3% |
| PAT | ₹10.96 Cr | ₹10.42 Cr | 🔼 5% |
| PBT Margin | 3.78% | 4.26% | 🔻 48 bps |
The second half clearly outshone the first. If this momentum holds, FY26 could be their breakout year.
🔧 What’s New: Ratlam Wires Acquisition
Kataria just acquired the Wire Division of Ratlam Wires Pvt Ltd via slump sale on a going concern basis.
📌 Strategic Rationale:
- 🧵 Expands product portfolio in the steel wire segment
- 💰 Adds revenue and margin synergies
- 🚧 Strengthens presence in infra, construction, and utility supply chains
Anoop Kataria (Director) said it’ll help serve a wider range of industries and improve scale. Classic bolt-on growth move.
🏗️ About Kataria Industries
Kataria Industries makes the boring-but-vital stuff that keeps infrastructure standing — and electricity flowing.
⚙️ Product Line:
- LRPC Strands
- Steel Wires
- Post-tensioning Anchorage Systems
- HDPE SWC Ducts
- Couplers & Conductors
🧱 Where It Goes:
- Roads, Bridges, Metros, Railways
- Atomic Reactors & LNG Tanks
- Power Transmission Lines
Basically: if it vibrates, stretches, or conducts — Kataria probably makes it stronger.
🧠 EduInvesting Take
- H2 growth is solid — strong volume push with modest PAT margins
- Full-year growth muted, but the trajectory is right
- Acquisition is smart: expands both product and market footprint
- 👀 PBT margin under pressure — something to watch in FY26
Not a meme stock. Not a pump candidate. But a solid “steel core” smallcap quietly building India’s next highway, bridge, or metro rail.
⚠️ Risks to Watch
- Margin compression over multiple quarters
- Integration risks from Ratlam Wires buy
- Sector cyclicality (infra and real estate slowdowns can hit demand)
Verdict:
🧱 Kataria isn’t here to trend. It’s here to tensile.
Now let’s make that wire money.
Author: Prashant Marathe
Date: June 2, 2025
Tags: Kataria Industries, H2 FY25 Results, Steel Wire Sector, Infrastructure, Ratlam Wires Acquisition, Smallcap Growth Stocks, India Manufacturing, EduInvesting Analysis
