CARE Ratings revises Ram Ratna Wires' outlook to Positive

Credit rating
Copper winding wires

Blacklitt Research29 October 20263 min read

Close-up of a coil of wire. — Photo by Sergio Rota on Unsplash (Unsplash License). Illustrative image.

Ram Ratna Wires (NSE: RAMRAT) said in a filing on 29 Oct 2026 that CARE Ratings assigned ₹1,046.45 crore of long-term and short-term bank facilities at CARE A-; Positive / CARE A2+, and reaffirmed other facilities with the outlook revised from Stable to Positive.

Key highlights

Assigned long-term / short-term bank facilities: ₹1,046.45 crore
Reaffirmed long-term / short-term bank facilities: ₹535.00 crore, enhanced from ₹355.00 crore
Reaffirmed long-term bank facilities: ₹401.00 crore, enhanced from ₹293.95 crore
Reaffirmed short-term bank facilities: ₹804.50 crore, enhanced from ₹313.00 crore
Rating date: 29 Oct 2026

The rating action in numbers

Item	Detail
Rating agency	CARE Ratings Limited
Assigned	Long-term / short-term bank facilities, ₹1,046.45 crore, CARE A-; Positive / CARE A2+
Reaffirmed, outlook revised from Stable	Long-term / short-term bank facilities, ₹535.00 crore (enhanced from ₹355.00 crore), CARE A-; Positive / CARE A2+
Reaffirmed, outlook revised from Stable	Long-term bank facilities, ₹401.00 crore (enhanced from ₹293.95 crore), CARE A-; Positive
Reaffirmed	Short-term bank facilities, ₹804.50 crore (enhanced from ₹313.00 crore), CARE A2+
Rating date	29 Oct 2026

Operating income grew 41.0% in FY26, with copper tubes up 113.0%

Total operating income rose from ₹3,683.72 crore in FY25 to ₹5,186.85 crore in FY26, on a consolidated basis. CARE says copper tube segment revenue rose 113.0% year-on-year, aided by the ramp-up of recently commissioned large-scale capacity.

The copper tubes business moved into the company in Q1FY26 through the amalgamation of Global Copper Private Limited, and CARE says the new Bhiwadi, Rajasthan facility is now fully operational. CARE expects sustained healthy growth in scale of operations, and says the outlook may be revised to Stable if that scale is not achieved.

The company's exchange filings from the same day also include a disclosure on an acquisition of stake in EPAVO Electricals Private Limited, which this rating lists as a 50.0% joint venture.

Gearing rose to 1.96x and operating cash flow turned negative

Overall gearing was 1.96x as on 31 Mar 2026, against 1.28x as on 31 Mar 2025. CARE attributes the rise to term debt for the copper tubes capex and higher working capital borrowings, and TOL/TNW rose to 2.48x from 1.69x.

PBILDT, which is profit before interest, lease rentals, depreciation and taxation, was ₹278.59 crore in FY26 against ₹164.31 crore in FY25, and PBILDT interest coverage was 3.27x against 3.01x. Cash flow from operations was negative ₹86 crore in FY26 against positive ₹230 crore in FY25, and CARE links that to higher working capital requirement.

CARE sets negative rating factors at overall gearing above 2x and PBILDT interest coverage below 2.50x, both on a sustained basis.

What the rating action means for Ram Ratna Wires' shareholders

The rating action covers bank facilities rated by CARE. The filing does not give the copper tubes capex amount or the lenders behind the facilities, and it does not say what the outlook change means for the share price.

Q1FY27 unaudited consolidated figures show total operating income of ₹1,855.62 crore, PBILDT of ₹90.51 crore and PAT of ₹35.16 crore, with interest coverage of 2.86x.

Reference: Original filing (PDF)

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