Ram Ratna Wires Q2 FY27: PAT +64% YoY to ₹35.7 Cr, revenue +69%, but margins slip further

Ram Ratna Wires' consolidated revenue rose 68.6% YoY to ₹1,961.95 Cr (+5.9% QoQ) and consolidated PAT (profit for the period, before minority interest) rose 63.7% YoY to ₹35.70 Cr, though QoQ profit growth was nearly flat at +1.5%. Basic EPS came in at ₹3.75; this isn't directly comparable to the ₹4.57 EPS on record for the year-ago quarter, since the company's December 2025 1:1 bonus issue means that quarter restates to ₹2.28 in this filing — on that adjusted base, EPS still grew broadly in line with PAT. The company has no formal guidance on record to measure against, so the only read is against its own trend: Q1 FY27 had printed 88.6% revenue growth and 120.8% PAT growth YoY, so Q2 marks a clear deceleration on both lines even as absolute growth stays strong. No analyst consensus specific to this quarter surfaced in a search — Q1 FY27 did beat the then-prevailing Street estimates (revenue ₹1,376-1,583 Cr vs actual ₹1,853 Cr; PAT ₹21-27 Cr vs actual ₹35.2 Cr) by a wide margin, but no Q2-specific preview was found, so vsStreet is unknown here. The growth came with margin compression: consolidated net margin slipped to 1.82% from 1.87% a year ago and 1.89% last quarter. The squeeze shows up in cost of materials consumed, which rose to 95.5% of revenue from 92.2% YoY and 91.0% QoQ — raw-material cost pass-through evidently lagged the volume-led revenue growth. Finance costs added to the pressure, up 57.7% YoY to ₹29.87 Cr (though down from ₹31.65 Cr in Q1 FY27), tracking a working-capital build: inventories are up 32.4% and trade receivables 20.1% since March 2026, funded by a 34.6% rise in current borrowings to ₹523.54 Cr. The same board meeting approved acquiring the remaining 50% of joint venture Epavo Electricals from Epack Durable, taking Ram Ratna's stake to 100% and converting it into a wholly-owned subsidiary; ahead of that, the company booked a one-time ₹7.12 Cr impairment on its existing Epavo stake (per an independent valuer's report) that hit standalone PAT (₹28.88 Cr, versus ₹35.70 Cr consolidated) but not the consolidated number, where Epavo remains equity-accounted and posted a ₹2.15 Cr share-of-loss this quarter. The board also cleared up to ₹50 Cr for land acquisition in Rajasthan for future expansion, and the company separately disclosed a ₹29.23 Cr GST demand notice on August 29, 2026, which the filing's notes do not show as booked in this quarter's P&L. No management press release accompanied this filing, so there is no fresh qualitative commentary to reconcile against the numbers.