Rajratan Global Wire Ltd Share Price – NSE  / BSE

Steel, Small Cap

The agency has assigned '[ICRA] A1? rating to the short-term bank facilities of the company.

ICRA stated that the assigned ratings factor in Rajratan Global Wire Limited?s (RGWL) established market position in the tyre bead wire (TBW) segment, supported by its strong relationships with leading domestic and global tyre manufacturers, high entry barriers in the business and a demonstrated ability to scale volumes across geographies.

The company continues to be a market leader in India with a 42?43% market share, while its Thailand subsidiary has a significant regional presence as the country?s sole TBW manufacturing unit, along with high utilisation and acceptance among global original equipment manufacturers (OEMs).

The critical nature of TBW in tyre manufacturing, long approval cycles with tyre OEMs and elevated switching costs support business stability and revenue visibility and provide comfort.

The ratings positively consider the company?s strong volume growth trajectory, with consolidated volumes increasing to 1.34 lakh tonnes in FY2026 and the expectation of a healthy pace of growth in FY2027, driven by ramp-up of the Chennai facility and sustained demand across domestic and export markets.

Revenues increased to around Rs. 1,150 crore in FY2026 (24% year-over-year growth), driven largely by volume expansion despite moderation in realisations post the FY2023 peak. The healthy demand outlook for the tyre industry, particularly the resilience of the replacement segment, is expected to support steady revenue growth over the medium term.

The company?s capital structure remains conservative, and with major capex plans nearing completion, the company is expected to witness gradual deleveraging, supported by increasing earnings and moderation in capex intensity.

The ratings are constrained by the company?s high dependence on the TBW segment, exposing it to cyclicality in the tyre and automobile sectors. This risk is partly mitigated by the stable replacement demand segment and its strong customer relationships.

Additionally, the company remains exposed to raw material price fluctuations, which can impact margins, particularly during periods of heightened competition or excess supply.

Further, RGWL?s operations, especially in Thailand and exports to the U.S. and other geographies, continue to be vulnerable to changes in global trade policies, tariff structures and protectionist measures, which can influence competitiveness and demand across markets.

Rajratan Global Wire is engaged in the manufacture of high carbon steel wires, primarily tyre bead wire (TBW), which is a critical input for the tyre industry. The company also manufactures drawn steel wire (black wire), catering to automobile, construction and engineering sectors, providing limited diversification.

The scrip fell 1.12% to currently trade at Rs 450 on the BSE.

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Rajratan Global Wire has received upgrade in credit rating outlook from ICRA as detailed below:

Long term fund based cash credit - ICRA A+; Stable (assigned)
Long term / short term unallocated limits - ICRA A+; Stable / ICRA A1 (assigned)

Rajratan Global Wire announced that its wholly owned subsidiary, Rajratan Thai Wire Co. has acquired land admeasuring 2.42124 acres along with a building constructed thereon admeasuring 3,053.5 square metres, situated at 155/29 Moo 4, Petkaseam Road, Tambol Chetsamian, Amphur Potharam, Ratchaburi 70120, Thailand, which is in proximation to the existing manufacturing facilities of the Company.

Total operating expenditure for the period under review was Rs 285.69 crore, up 31% YoY. This was due to higher raw material costs (up 19.7% YoY) and higher other expenses (up 44% YoY).

Profit before tax in Q4 FY26 stood at Rs 17.73 crore, down by 11.6% from Rs 20.06 crore in Q4 FY25.

For FY26, the company has reported net profit and revenue of Rs 70.11 crore (up 19.2% YoY) and Rs 1,156.50 crore (up 23.7% YoY), respectively.

Rajratan Global Wire is engaged in the manufacturing of bead wire, a high-carbon steel wire utilized in the production of tires.