Wires & Fabriks profit drops 82% as costs erode margins
Annual net profit fell to ₹26.43 lacs despite a revenue increase, as higher finance and depreciation expenses squeezed the bottom line.
— 2 earlier stories on Wires & Fabriks (S.A.) Ltd. →What's new
- Net profit plummeted 82% to ₹26.43 lacs for FY26.
- Revenue grew 6% to ₹115.45 crores, failing to offset rising costs.
- The board recommended a dividend of ₹0.10 per share.
Why this matters
The company is struggling to convert top-line growth into earnings. Higher finance and depreciation costs are the primary culprits for the margin compression, and a nominal dividend does little to mask the underlying weakness in profitability.
What we're watching
- Whether the sequential recovery seen in Q4 can be sustained in FY27.
- Management's plan to control finance and depreciation expenses.
- Shareholder reception to the dividend at the upcoming AGM.
The full read
Wires & Fabriks saw its annual net profit crater by 82% in FY26, falling to ₹26.43 lacs from ₹150.33 lacs the year prior. This earnings collapse occurred even as the company managed to grow its revenue by 6% to ₹115.45 crores.
Margins are failing.
The disconnect between top-line growth and bottom-line performance points to severe margin compression, fueled by rising finance and depreciation costs that have consistently plagued the company's quarterly disclosures throughout the fiscal year. While the company did record a sequential recovery in the fourth quarter, the annual picture remains bleak. The board's proposal of a ₹0.10 per share dividend is a minor gesture that fails to address the core issue of profitability. The company is currently unable to protect its margins from rising operational and financial burdens, and that is the primary test for the coming year.
Questions answered
- How did the company's revenue compare to the previous year?
- Revenue increased by 6% to ₹115.45 crores, up from ₹109.02 crores in the prior year.
- What caused the sharp decline in net profit?
- The profit drop was driven by intense margin pressure, specifically higher finance and depreciation costs.
- What dividend did the board recommend?
- The board recommended a dividend of ₹0.10 per equity share, which represents a 1% payout.
- Was there any positive trend in the annual results?
- While the annual performance was weak, the company did show a sequential recovery in the fourth quarter compared to Q3.
Story so far
All notes on WIREFABR →- 28 May 2026 · 4:49 PM IST Wires & Fabriks profit drops 82% as costs erode margins
- today Wires & Fabriks profit plunges 82% as costs erode revenue gains
- today Wires & Fabriks reshuffles leadership as profitability stays under pressure