Ram Ratna Wires Reports Strong Q2 FY26 Growth and Announces 1:1 Bonus Shares for Shareholders

Ram Ratna Wires Limited, established in 1992, is a prominent Indian manufacturer of winding wires, particularly enamelled copper wires. The company has announced its financial results for the quarter and half-year ending on September 30, 2025. Additionally, the Board of Directors has approved the issuance of bonus shares in a 1:1 ratio.

The Board of Directors has sanctioned the distribution of bonus equity shares in a 1:1 ratio. This means shareholders will receive one equity share of Rs. 5 for each fully paid-up equity share they hold as of December 26, 2025. The company disclosed this information to stock exchanges on November 12.

In Q2 FY26, Ram Ratna Wires experienced significant growth compared to Q2 FY25. Revenue from operations surged by 23.8% to Rs 1,163.4 crore. EBITDA also rose sharply by 53.9% to Rs 55.5 crore, improving the EBITDA Margin from 3.8% to 4.8%. Profit After Tax (PAT) increased by 29.9%, reaching Rs 21.8 crore, with a slight improvement in the PAT Margin from 1.8% to 1.9%.

For the first half of FY26, revenue grew by 17.2% to Rs 2,145.9 crore, and EBITDA increased by 36.7% to Rs 98.4 crore year-on-year. The net profit for this period was Rs 37.7 crore, marking a growth of 13.7% compared to H1 FY25.

The proposal involves issuing approximately 4,66,26,536 bonus equity shares with a face value of Rs. 5 each, totalling around Rs. 23,31,32,680. These shares will be funded through the Securities Premium Account and Retained Earnings as of March 31, 2025.

The pre-bonus paid-up share capital stands at Rs. 23,31,32,680 (comprising 4,66,26,536 equity shares). Post-bonus issuance, the paid-up share capital is expected to rise to Rs. 46,62,65,360 (divided into 9,32,53,072 equity shares of Rs. 5 each).

Future Outlook and Strategic Plans

Shri Mahendrakumar Kabra, MD of Ram Ratna Wires Limited stated: "A key highlight this quarter is the rise in contribution from Copper Tubes & Pipes, now at 24% of revenue compared to 13% last year." He added that their Bhiwadi plant is scaling up operations to meet growing demand from the air conditioning industry.

"Looking ahead," he continued, "we expect strong demand from Q3 FY26 onwards... We remain committed to diversifying our portfolio through a pipeline of value-added products tailored to high-growth applications."

Market Analysis and Stock Target

Riyank Arora from Mehta Equities Ltd commented on the stock's performance: "Price has been consolidating around ₹620-650 after a strong rally... A breakout above ₹660 allows a projection toward ₹700 (approx. 40-point range expansion). Below ₹600, the structure weakens."

The estimated date for crediting or dispatching these bonus shares is within two months from Board approval—by January 10, 2026.

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