Ram Ratna Wires Q4: What Contributed to Its 55% Profit Surge?

Synopsis: A leading copper products maker reported a breakout in FY26, with revenue rising 41 percent to Rs. 5,177 crore and PAT jumping 55 percent to Rs. 109 crore. Strong growth in copper tubes, record Q4 earnings, and expansion into wind- and EV-linked businesses are accelerating its transition beyond traditional winding wires. 

India’s accelerating power, cooling, and renewable energy investments are creating strong demand for copper-based products. A traditional winding wire manufacturer is now rapidly diversifying into copper tubes, wind energy components, and EV-linked applications, with FY26 marking a clear inflection point as growth, profitability, and scale expanded sharply across businesses.

With a market capitalization of Rs.4,600 crore, the shares of Ram Ratna Wires Limited were trading at Rs. 519 per share on 26 May 2026; the stock is up by 10 percent from the previous closing price of Rs.470.93. It is trading at a P/E of 42x.

FY26 Financial Performance & Dividend Announcement 

For FY26, consolidated revenue from operations rose 40.8 percent YoY to Rs. 5,176.6 crore, while operating EBITDA increased 68.7 percent to Rs. 263.6 crore, with margins improving to 5.1 percent from 4.3 percent. Profit after tax grew 54.7 percent to Rs. 108.6 crore, while PAT margins improved to 2.1 percent. The board recommended a dividend of Rs. 2.50 per share, representing 50 percent of the face value of Rs. 5 each.

The copper tubes and pipes business emerged as a major growth driver, with its contribution to overall revenue mix rising from 14 percent to 22 percent during the year, reflecting the company’s ongoing diversification into higher-growth and higher-margin segments.

Q4 FY26 Snapshot

Q4 FY26 marked the strongest quarter in the company’s history, with consolidated revenue surging 83.2 percent YoY to Rs. 1,752.9 crore, while operating EBITDA more than doubled to Rs. 93.2 crore, leading to margin expansion to 5.3 percent. Profit after tax jumped 110.2 percent YoY to Rs. 39.2 crore. On a sequential basis, revenue grew 37.2 percent, while PAT increased 24 percent over Q3 FY26, reflecting strong operating momentum across businesses.

Copper Tubes: The Structural Growth Engine

The single biggest driver of Ram Ratna’s FY26 outperformance was the rapid scaling of its copper tubes and pipes business. Capacity at its Bhiwadi, Rajasthan facility, housing India’s largest copper tube plant, is being expanded from the earlier base to 24,000 MTPA, targeting a segment where nearly 70 percent of domestic demand is currently met through imports. 

The company manufactures Level Wound Coil and Inner Grooved Tubes, and its products are approved by major OEMs, including Daikin, Voltas, Hitachi, Panasonic, Blue Star, and Whirlpool. With the government having levied countervailing duties on imported copper tubes, domestic manufacturers like Ram Ratna are structurally better placed than they have ever been to capture this replacement demand.

Diversification Beyond the Core

Ram Ratna’s expansion story goes well beyond copper tubes. Through its subsidiary Tefabo Product Private Limited, the company now holds a 30-40 percent market share in tower internals for wind turbines, with manufacturing facilities in Bangalore and a new plant being added in Vadodara. A European technology transfer agreement for mini wind turbines is also in progress. 

Meanwhile, its joint venture Epavo Electricals is manufacturing BLDC motors for air conditioners, ceiling fans, and HVLS applications under the PLI scheme, targeting the large import-dependent domestic AC motor market. Copper foils for EVs, switchgear, and transformers are planned by FY29, further extending the product portfolio into higher-margin territory.

Verdict

FY26 marked a major turning point, with revenue growth accelerating sharply and quarterly earnings more than doubling. The copper tubes business has emerged as a meaningful growth driver, while improving ROCE and ROE reflect stronger profitability and capital efficiency. Backed by infrastructure spending, EV demand, and import substitution opportunities, the company’s diversification strategy is beginning to scale meaningfully.

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