01 — At a Glance
When Copper Wires Become an Empire
- 52-Week High / Low₹393 / ₹247
- Q3 FY26 Revenue₹1,278 Cr
- Q3 FY26 PAT₹31.6 Cr
- TTM EPS₹9.42
- Annualised EPS (Q1-Q3 Avg × 4)₹8.73
- Book Value / Share₹54.3
- Price to Book5.66x
- ROCE (TTM)20.2%
- Net Debt/Equity0.34x
- Total Assets (Sep 2025)₹1,706 Cr
Flash Summary: Ram Ratna Wires just printed ₹1,278 crore in Q3 revenue — up 43.8% YoY. Q3 PAT jumped 72.5% to ₹31.6 crore. The P/E of 32.4x looks hot until you realize the company is growing net profits at 31.4% annually (TTM), has ₹24,000 MTPA of new copper tube capacity firing up from June 2025, and is literally becoming India’s answer to import substitution in HVAC. The stock is at ₹308, up just 0.41% in 3 months. The market has no idea what’s brewing here. Yet.
02 — Introduction
The Copper Merchant India Forgot Existed
Here’s a fun fact: whenever you switch on your ceiling fan, turn on your air conditioner, or fire up a washing machine, a copper wire made by Ram Ratna Wires is probably working behind the scenes. It’s like being the anonymously-great supporting actor who does all the heavy lifting while the hero gets the awards.
Ram Ratna Wires Limited (RRWL) has been manufacturing enamelled copper wires since 1992. It’s not sexy. There are no product launches, no fancy marketing campaigns, no brand ambassadors. The company just quietly became India’s second-largest winding wire manufacturer while simultaneously being the only one offering the widest range — from 18 microns (that’s thinner than a human hair) to 4.876 mm. It supplies 70–75% of its products directly to large OEMs like Honda, Taco Prestolite, and Nidec. The remaining goes through dealer networks across 200+ Indian cities.
But Q3 FY26 changed the narrative. The company’s revenue jumped 43.8% YoY to ₹1,278 crore. Net profit surged 72.5% to ₹31.6 crore. Why? Because they merged their Global Copper subsidiary (GCPL), added a massive 24,000 MTPA copper tube plant in Bhiwadi that started commercial production in June 2025, and suddenly this quiet copper merchant became a vertical integrator playing for stakes that matter. The Bhiwadi plant is particularly spicy — it’s an import substitution machine. India currently imports ~70% of its copper tubes. RRWL’s goal: change that.
CARE Ratings Note (Sep 2025): CARE A- Stable / CARE A2+ — bank facilities of ₹961.95 crore rated and reaffirmed. CARE specifically noted that the new copper tube plant’s successful operationalization and healthy capacity utilisation are the key monitorables. Translation: The credit committee is watching the Bhiwadi plant like a hawk. If it ramps up as planned, this company’s credit profile gets even shinier.
03 — Business Model: Copper, Tubes, and OEM Survival
They Convert Raw Copper Into ₹1,278 Crore of Annual Earnings. That’s It. That’s The Magic.
Ram Ratna’s business model is deceptively simple: you source raw copper, refine it into ultra-thin wires or tubing, apply thermal insulation (for wires), and then sell at a fixed markup. The company doesn’t chase pricing power. Instead, it charges fixed conversion fees per metric tonne — typically ₹30,000–₹35,000 per MT for wires and ₹37,000–₹52,000 per MT for tubes. This means the company is essentially a converter — it bears minimal copper price volatility because it passes that risk back to customers through back-to-back orders.
The product mix is where diversity lives. Enamelled copper wires (84.6% of FY25 revenue) go into motors, transformers, generators, and automotive applications. Copper tubes (now 14.5% post-GCPL merger, ramping hard) serve HVAC systems, refrigeration, plumbing, and solar water heaters. The company also has a 50:50 JV with Epack Durable called Epavo Electricals (making BLDC motors for ACs, ceiling fans, and industrial ventilation) and a 64% stake in Tefabo Products (wind turbine tower components). So while the core is enamelled wire, the company is actively building a portfolio of higher-margin end-products.
Domestic sales account for 92% of revenue, exports 8%. The OEM concentration is both strength and weakness — 70–75% goes to large OEMs (Honda, Taco, Nidec, ABB, Siemens lookalikes), meaning stable cash flows and long-term contracts. But it also means price pressure and OEM-driven growth targets. The dealership network handles the remaining 25–30%, giving RRWL some direct channel access in niche and institutional segments.
Enameled Wires84.6%of FY25 revenue
Copper Tubes14.5%growing fast
Domestic Sales92%OEM-heavy
Capacity Utils.87%FY25 wires
Fun fact from investor presentations: RRWL supplies to ~85–90% of India’s power transformer manufacturers. The company is so embedded in the OEM supply chain that if a major transformer player sneezes, RRWL has tissues ready. This creates both moat and risk — moat because OEMs rely on RRWL’s consistency and quality, risk because OEM pricing power is brutal and margin compression is always a shadow threat.
04 — Financials Overview
Q3 FY26: When Revenue Goes +43.8% and Profits Copy The Assignment
Result type: Quarterly Results | Q3 FY26 EPS: ₹3.35 | 9M Avg EPS: (₹1.75+₹2.28+₹3.35)/3 = ₹2.46 | Annualised EPS: ₹9.84
| Metric (₹ Cr) |
Q3 FY26
Dec 2025 |
Q3 FY25
Dec 2024 |
Q2 FY26
Sep 2025 |
YoY % |
QoQ % |
| Revenue | 1,277.9 | 888.7 | 1,163.4 | +43.8% | +9.8% |
| EBITDA | 72.0 | 39.0 | 55.5 | +84.9% | +29.7% |
| EBITDA Margin % | 5.6% | 4.4% | 4.8% | +120 bps | +80 bps |
| PAT | 31.6 | 18.3 | 21.8 | +72.5% | +45.0% |
| EPS (₹) | 3.35 | 1.87 | 2.28 | +79.1% | +47.0% |
The EBITDA Story: EBITDA margin expanded from 4.4% (Q3 FY25) to 5.6% (Q3 FY26) — that’s 120 basis points of pure margin expansion. This is what happens when you (a) absorb a high-margin subsidiary (GCPL), (b) start running a new 24,000 MTPA tube plant that operates at better spreads, and (c) see copper commodity volatility actually work in your favor because your back-to-back ordering locks in spreads early. The market is pricing this like RRWL is a slow compounder. The numbers suggest it’s a margin-expansion story wearing a compounder’s shirt.
💬 Q3 shows 120 bps of EBITDA margin expansion, yet the stock is flat in 3 months. Is this a valuation reset coming, or is the market still unconvinced about the tube business ramp? What’s your read?
05 — Valuation: Fair Value Range
At 32.4x P/E, Are We Overpaying For Copper, Or Underpaying For Growth?
Method 1: P/E Based
TTM EPS = ₹9.42. Annualised (9M) EPS = ₹9.84. For a specialty manufacturer with 37% profit CAGR (5-year), 20% ROCE, and new capacity ramping, a P/E of 25x–35x is justified if growth sustains. Conservative band: 20x–28x.
→ 20x × ₹9.42 = ₹188.4 28x × ₹9.42 = ₹263.8
Range: ₹188 – ₹264
Method 2: Price to Book Value
Book Value = ₹54.3. Current P/BV = 5.66x. For a capital-intensive mfg company with expanding capacity and 21.5% ROCE (FY25), a P/BV of 4x–6x during expansion phase is reasonable.
→ 4.0x × ₹54.3 = ₹217.2 6.0x × ₹54.3 = ₹325.8
Range: ₹217 – ₹326
Method 3: EV/EBITDA
TTM EBITDA ≈ ₹212 Cr. EV ≈ ₹3,471 Cr. EV/EBITDA = 16.3x. For a specialty wire & tubes mfg with capex completing and margin expansion underway, a 14x–18x range is fair.
→ 14x × ₹212 = ₹2,968 Cr → ₹308 per share (net basis)
Range: ₹280 – ₹360 (current price sits here)
Consolidated View: Methods 1 and 2 suggest fair value in the ₹188–₹326 range, but they’re backward-looking (based on TTM/current EBITDA). Method 3 (current trading range) suggests the market is pricing in modest tube capex ROI and muted growth assumptions. The disconnect: if the Bhiwadi plant delivers 85%+ utilisation by FY27 and tube margins hold at ₹45,000–52,000 per MT, RRWL could see EPS approaching ₹14–16 by FY27 (vs. ₹9.84 annualised now). That would imply upside at sustained 25x–30x P/E. Current valuation at ₹308 assumes the tube ramp succeeds but doesn’t price in the full margin benefit.
⚠️ EduInvesting Fair Value Range: ₹280 – ₹380. This fair value range is for educational purposes only and is not investment advice. Please consult a SEBI-registered investment advisor before making any financial decision.
06 — What’s Cooking: News, Triggers & the Tax Headaches
Bhiwadi Goes Live, Taxes Go Haywire, and the Board Just Issued a 1:1 Bonus
