Synopsis: Rajputana Industries Limited, a provider of non-ferrous metallurgy and electrical hardware, has successfully carried out a large-scale infrastructure upgrade at its Reengus factory in Rajasthan. The company has immediately ramped up its core copper, aluminium and brass manufacturing loops and launched two completely new business verticals anchored by an intensive 36,000 km per annum electric cable production grid.
In the intensely competitive world of industrial metal drawing and downstream power components, floor-level production capacity dictates long-term corporate dominance. Rajputana Industries Limited has dropped a major regulatory announcement that radically rewrites its manufacturing baseline. By executing an immediate multi-million rupee asset restructure to clear out bottlenecked production lines and establish premium product segments, the company is transforming its operational architecture.
Shares of Rajputana Industries Limited were trading at Rs 72. The company currently commands a market capitalization of Rs. 160 crore having a book value of Rs 34.4 per share.
Multi-Product Capacity Expansion
Rajputana Industries informed the stock exchanges that its manufacturing facility at Reengus, Rajasthan, has undergone a certified enhancement in installed production capacity following physical verification by an independent Chartered Engineer. The revised capacities have become effective immediately and will support higher production volumes while improving operational efficiency.
The expansion has been funded through a combination of internal accruals and debt, with the company investing approximately Rs 10 crore to strengthen its manufacturing infrastructure. According to the company, it has undertaken the investment to enhance manufacturing capability, improve operational efficiency, and meet rising demand across its key business segments.
The company has significantly added manufacturing capacity to its core businesses and also moved into new product segments altogether. Installed annual capacity for aluminium winding wires, strips, ingots and rods has increased from 4,800 MT to 5,800 MT, while copper winding wires, billets, rods and mother tubes have increased from 3,750 MT to 4,300 MT. Similarly, capacity for brass rod, wire, billet and ingot has increased from 4,600 MT to 5,600 MT, enhancing the company’s presence in engineering and industrial metal products.
Company Enters Two High-Growth Product Segments
Perhaps the most important aspect of the announcement is not merely the expansion of existing capacity but the creation of entirely new manufacturing capabilities.
Rajputana Industries has established an annual manufacturing capacity of 2,400 MT for nickel-iron-based alloys, a product category where it previously had no installed capacity.
In addition, the company has entered the Electric Cable and Conductor segment with a newly certified production capacity of 36,000 kilometres per annum, opening another revenue stream that aligns with India’s growing investments in power transmission, infrastructure, renewable energy, railways, and industrial electrification.
Financials
The company delivered a healthy performance in H2 FY26, with revenue increasing to Rs 366 crore, up 9.9 percent, from Rs 333 crore in H1 FY26 and 24.1 percent, from Rs 295 crore in H2 FY25.
Operating profit improved to Rs 15 crore from Rs 13 crore in H1 FY26 and Rs 10 crore in H2 FY25, registering a 15.4 percent and 50 percent growth. However, the operating profit margin remained steady at 4 percent, unchanged from H1 FY26 but higher than 3 percent in H2 FY25.
Net profit increased to Rs 7 crore, rising 40 percent from Rs 5 crore in H1 FY26 and 75 percent from Rs 4 crore in H2 FY25. EPS improved to Rs 3.07 from Rs 2.44 in H1 FY26 and Rs 1.89 in H2 FY25, reflecting stronger earnings generation.
The company continues to maintain healthy profitability with ROCE of 19.7 percent and ROE of 17.4 percent. Over the last five years, it has delivered a 30 percent compounded sales growth and an impressive 110 percent compounded profit growth, highlighting strong long-term earnings expansion.
The balance sheet remains reasonably healthy with a debt-to-equity ratio of 0.83, current ratio of 1.21, and working capital of Rs 30.9 crore. The company also reported cash and cash equivalents of Rs 3.62 crore while trading at a P/E of 13.1x . Supported by healthy return ratios and consistent profit growth, the company appears well-positioned to fund its future growth despite operating in a working capital-intensive business.
Why this Expansion Matters
The expansion goes beyond production capacity. Transformers, electric motors, switchgear, power distribution networks, renewable energy equipment, and industrial machinery require aluminium and copper winding products. Rajputana Industries can execute larger orders, improve production efficiency, and benefit from economies of scale as demand rises by expanding these capacities.
Another key factor is the company’s entry into new product categories. The introduction of nickel-iron-based alloys provides opportunities in high-value sectors, including aerospace, defence, precision engineering and electronics, while the introduction of electric cable and conductor manufacturing expands its product portfolio. Rajputana Industries will be able to climb the value chain of electrical manufacturing by offering a wider product portfolio, rather than confining itself to semi-finished metal components.
Capacity utilisation will be the key metric to watch. Increasing capacity is a prerequisite, but the real effect on the company’s bottom line will depend on how fast it can fill these expanded capacities with customer orders. If the industry demand remains strong, this Rs 10 crore investment could support stronger revenue growth, improved operating leverage and better profitability over the medium term.
Rajputana Industries Limited is a well-established high-precision metallurgy, downstream metal processing and finished conductor manufacturing company originally incorporated in 2011. The company is involved in melting, recycling, extruding and advanced drawing of premium non-ferrous metals. Based in Rajasthan, the company operates from centralised, state of the art industrial complexes and combines specialised hot forging, automated casting and high-velocity wire drawing infrastructure to supply critical raw materials and finished cables to major power, transport and manufacturing networks across India.
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