Wires & Fabriks (S.A) Ltd Q2/H1 FY2025 – How to Spin 3.85 MW of Wind Power into 3.70 Lakh Profit
1. At a Glance
When a company has five windmills churning at full speed in the Thar Desert but still reports a quarterly profit smaller than your neighbourhood kirana store’s monthly sales — you know it’s time to open the balance sheet with a magnifying glass.
Wires & Fabriks (S.A) Ltd, the Jaipur-based textile-tech veteran that’s been around since 1957, makes forming fabrics, dryer screens, and technical textiles that keep paper mills running. Yet, in Q2FY25, it reported revenue of ₹29.34 crore and a profit of just ₹0.02 crore. That’s a 95% drop QoQ, a heroic performance if your goal was to test how low profits can go while still staying positive.
At ₹174 per share, the company commands a market cap of ₹53.2 crore, with a P/E of 51.7x, ROCE of 6.18%, ROE of 3.02%, and a debt-to-equity of 2.41. The stock has fallen 28% in three months — and even the windmills must be sighing in frustration.
2. Introduction
There are old companies, and then there are vintage relics that refuse to die. Wires & Fabriks falls in the latter category — a 68-year-old manufacturer that’s been weaving the invisible backbone of India’s paper industry: the fabrics and meshes used in papermaking machines.
Once upon a time, paper mills across India knew this company’s name the way IT folks know Infosys. But time and debt wait for no one. The modern market doesn’t care if you’ve been around since Nehru was in power; it only wants margins, growth, and memes.
So, while Wires & Fabriks quietly churns out forming fabrics in Jaipur and runs five windmills in Jaisalmer (3.85 MW total), the numbers have begun to squeak like an old loom. Revenue growth over five years? Barely 2%. Profit growth over ten years? Negative.
And yet, the share still trades at over 50x earnings — because apparently, some investors believe nostalgia is a moat.
3. Business Model – WTF Do They Even Do?
Let’s decode this mystery fabric manufacturer.
Wires & Fabriks makes technical textiles used in paper production — stuff like forming fabrics, dryer screens, pulp fabrics, press belts, conveyor belts, stainless steel mesh, and phosphor bronze mesh. These are not your regular T-shirt materials; they’re high-performance fabrics that decide whether a paper mill produces crisp A4 sheets or soggy disappointments.
Their product portfolio reads like a textile textbook:
Forming Fabrics: Triple-layer, double-layer, single-layer — think of it as multi-core processors but for paper.
Dryer Screens: Woven and spiral variants that literally dry pulp into paper.
Press Belts & Pulp Fabrics: Fancy ways to squeeze out water while keeping the pulp’s integrity.
Conveyor Belts & Meshes: Move things around while withstanding heat, chemicals, and management’s “stretch goals.”
To add some green karma, the company runs 5 windmills generating 3.85 MW, selling power to Rajasthan DISCOMs. Sadly, the wind energy doesn’t seem to be blowing profits their way.
So basically, Wires & Fabriks sits at the intersection of industrial textiles and renewable irony.
4. Financials Overview
Let’s tear open the Q2FY25 results — and brace ourselves for turbulence.
Type of Result: Quarterly (EPS annualised = EPS × 4)
Commentary: Operating performance looks decent on paper (pun intended), but the bottom line got shredded. High interest cost and depreciation ate up nearly everything. With an interest coverage of just 1.16, they’re one bad quarter away from needing caffeine loans.
5. Valuation Discussion – Fair Value Range
Let’s crunch some fair value math.
A. P/E Method: Industry P/E = 19.2 Company EPS (annualised) = ₹0.28 → Fair Value Range = ₹5 – ₹10
B. EV/EBITDA Method: EV = ₹172 Cr EBITDA (TTM) = ₹23 Cr EV/EBITDA = 7.44x Fair Range assuming 6x–8x EV/EBITDA → ₹140 – ₹185
C. DCF (Simplified): Assuming cash flow stabilises near ₹15–20 Cr over next few years, fair intrinsic range = ₹130–₹160
Final Fair Value Range (Educational Only): ₹130 – ₹185 per share
Disclaimer: This range is for educational purposes only and not investment advice. Unless you enjoy weaving financial fabric into emotional losses, please read carefully.
6. What’s Cooking – News, Triggers, Drama
November 2025 was spicy for Wires & Fabriks.
Director Shuffle:Mrs. Shailja Khaitan appointed Additional Director; Pranika Khaitan Rawat resigned. Family drama in boardroom? Classic Indian promoter cinema.
CFO Exit: Long-time CFO Rajesh Patni resigned in May 2025 citing health reasons. Translation: “Numbers are making me sick.”
Results for H1FY25: The half-yearly profit was ₹3.70 lakh —
