Wires & Fabriks profit plunges 82% as costs erode revenue gains
Annual profit fell to ₹26.43 lacs despite a 6% rise in revenue. Higher finance and depreciation costs are the primary culprits for the margin squeeze.
— 2 earlier stories on Wires & Fabriks (S.A.) Ltd. →What's new
- Annual revenue climbed 6% to ₹115.45 crores.
- Full-year net profit dropped 82% to ₹26.43 lacs.
- Board recommended a dividend of ₹0.10 per share.
Why this matters
Revenue growth is failing to translate into bottom-line performance. The sharp profit decline suggests that rising finance and depreciation costs are overwhelming the company's ability to maintain margins.
What we're watching
- Whether the company can stabilize margins in FY27.
- Shareholder reaction to the dividend recommendation.
- Management commentary on the rising finance costs.
The full read
Wires & Fabriks posted a difficult set of audited results for FY26. While annual revenue grew 6% to ₹115.45 crores, the company's bottom line collapsed.
Profitability evaporated.
Net profit for the year fell 82% to ₹26.43 lacs, down from ₹150.33 lacs in the prior year, while the fourth quarter profit dropped to ₹15.04 lacs from ₹30.80 lacs a year earlier. Management points to higher finance and depreciation costs as the primary drivers of this margin compression. The board has recommended a dividend of ₹0.10 per share, a modest gesture for shareholders in a year where profitability evaporated. The core issue is clear: the company is generating more business but keeping significantly less of it. Until the cost structure is brought under control, revenue growth will remain a secondary concern for investors.
Questions answered
- How did the annual profit compare to the previous year?
- Net profit fell to ₹26.43 lacs for the year ended March 31, 2026, a significant decline from the ₹150.33 lacs reported in the prior year.
- Did revenue grow during the period?
- Yes, annual revenue increased by 6% to reach ₹115.45 crores.
- What caused the drop in profitability?
- The company cited higher finance and depreciation costs as the primary factors compressing margins throughout the year.
- What dividend did the board propose?
- The board recommended a dividend of ₹0.10 per equity share, which remains subject to approval at the upcoming annual general meeting.
- How did the fourth quarter perform?
- Net profit for the fourth quarter was ₹15.04 lacs, down from ₹30.80 lacs in the same quarter of the previous year.
Story so far
All notes on WIREFABR →- 28 May 2026 · 5:08 PM IST Wires & Fabriks profit plunges 82% as costs erode revenue gains
- today Wires & Fabriks reshuffles leadership as profitability stays under pressure
- today Wires & Fabriks profit drops 82% as costs erode margins