Precision Wires Soars 17%, Record High After Strong Q3

Precision Wires India shares jumped sharply on Monday, climbing to a new high after the company reported strong third-quarter numbers and shared updates on its expansion pipeline.

The stock rose nearly 17% to ₹305.80 on the NSE during the session. Around midday, it was trading close to ₹303, far ahead of the Nifty 50 index, which saw only marginal gains of 0.33%. Trading activity was heavy, with roughly 12.5 million shares changing hands.

On 17 Feb 2026, the stock touched ₹308.20, a new 52-week high, and over the past year, the stock has surged 110.2%, while the Nifty 50 Index has risen 11.5%.

What Sparked The Surge?

The rally followed the release of Q3FY26 results that showed sharp improvement in both revenue and profit.

Standalone net profit came in at ₹37.69 crore, almost double the ₹18.95 crore reported in the same quarter last year. Revenue from operations rose 36.54% year-on-year to ₹1,336.9 crore from ₹979.10 crore.

The strong growth in earnings appears to have reassured investors about demand conditions and operating performance, leading to aggressive buying during the session.

How Is Capacity Expansion Shaping Up?

Apart from earnings, the company’s expansion updates played a key role in boosting sentiment.

During the December quarter, it completed the installation of around 6,000 metric tonnes per annum (MTPA) of additional copper winding wire capacity at its Silvassa unit. With this addition, the total installed capacity for copper winding wires now stands at 55,000 MTPA.

Further expansion projects at the same location have already been approved and are underway. Once completed, likely by the end of FY28, the company estimates total capacity could rise to 68,000 MTPA.

At Valvada in Gujarat, the copper rod project is under implementation. Internal trial production has begun, and commercial production is expected to start in Q1FY27.

Another project focused on copper refining and recycling at Zaroli, Gujarat, is also progressing. Commercial production there is targeted for Q2FY27.

What Do The Financial Indicators Suggest?

The company also declared a second interim dividend of ₹0.35 per equity share, with 19 February fixed as the record date.

From a financial standpoint, return on equity stands at 17%, higher than the industry average of 14%. Over the past five years, earnings have grown at about 18% annually. While that trails the industry’s 33% growth rate, the company retains a large share of profits to fund expansion.

Its median payout ratio over three years stands at 24%, implying that three-fourths of its earnings are being ploughed back into the business. At the same time, the company has established its dividend-paying history over the last decade or so.

On the charts, the stock has clearly moved beyond the resistance level of ₹270, currently trading closer to the ₹300 levels, implying strong buying sentiment in the stock. However, after such an abrupt movement, the markets may look to see some consolidation, but overall, the trend is strong.

Also Read - IRCTC Q3 FY26 Profit Rises 15.6% to ₹394 Crore

With its earnings growth momentum intact, the expansion of its capacity is also underway.

Sources:

Business Standard

Simply Wall Street