Vidya Wires Limited

Vidya Wires Limited delivered a strong financial performance in H1 FY26, with revenues increasing by 5.1% year-on-year to ₹793 crores, up from ₹750 crores in the corresponding previous period. This growth was accompanied by a significant 19% rise in EBITDA to ₹34 crores, leading to an EBITDA margin expansion of 50 basis points to 4.3%. Net profit (PAT) also saw a substantial increase of 30% to ₹23 crores, with the PAT margin improving to 2.8% and EPS growing 29% to ₹1.41, reflecting enhanced operational efficiencies and a favorable product mix.

The company is actively pursuing a strategic capacity expansion, aiming to nearly double its manufacturing capacity from 19,680 metric tons per annum to 37,680 metric tons per annum through its new ALCU Industries facility. This expansion, funded by ₹140 crores from IPO proceeds, is 75-80% complete, with operations expected to commence in phases from January/February 2026 and full operationalization within 4-5 months. The initiative will also enable the company to broaden its product portfolio from 12 to 18 categories, including high-voltage products and specialized conductors, which are expected to be margin accretive.

Vidya Wires is strategically positioned to become the third-largest player in the Indian winding and conductivity product industry, targeting an 11% market share from its current 5.7%. The company maintains a diversified international presence, exporting to over 18 countries including the USA, Canada, Mexico, Middle East, Europe, and Australia. Post-expansion, the company aims to significantly increase its export revenue contribution to 22-25% of total revenues, leveraging its UL approval and pre-approved supplier status with Power Grid Corporation of India to capture growing global demand.

Management highlighted a de-risked business model characterized by 94% repeat customer revenue and no single customer contributing more than 9% of total revenue. The company employs a 100% back-to-back pricing model and hedging strategies for copper prices and exchange rates, effectively mitigating raw material price volatility. Addressing past concerns regarding operating cash flow, management reported a reduction in receivable days from 36 to 33 and set a target to further reduce them to 30 days, aiming for positive operating cash flows in the next financial year.

Demonstrating a commitment to sustainable practices, Vidya Wires sources approximately 26% of its power requirements from renewable energy through its own solar and windmill installations. This initiative not only contributes to environmental stewardship but also provides the company with enhanced cost stability, reinforcing its long-term operational efficiency and resilience.