Revenue and Profitability Trends
Examining the net sales figures, D P Wires witnessed a steady increase from ₹330.72 crores in March 2019 to a peak of ₹1,215.21 crores in March 2023. However, the fiscal year ending March 2025 saw a notable decline to ₹620.25 crores, reflecting a significant contraction compared to the previous two years. This volatility in sales is mirrored in the total operating income, which followed a similar pattern, peaking in 2023 before retreating sharply in 2025.
Operating profit before other income (PBDIT excl. other income) also displayed a rising trend from ₹24.80 crores in 2019 to ₹55.50 crores in 2023, before dropping to ₹26.29 crores in 2025. Including other income, the operating profit peaked at ₹60.81 crores in 2023 and declined to ₹35.19 crores in 2025. Profit after tax (PAT) followed this trajectory, increasing from ₹17.42 crores in 2019 to ₹41.01 crores in 2023, then falling to ₹22.20 crores in 2025. Despite the recent dip, the company’s earnings per share (EPS) remained relatively strong, with ₹14.32 reported in 2025 compared to ₹12.84 in 2019.
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Cost Structure and Margins
The company’s cost of raw materials and purchase of finished goods have been the largest components of expenditure, with raw material costs rising from ₹236.67 crores in 2019 to ₹356.10 crores in 2025, while purchases of finished goods surged dramatically to ₹185.66 crores in 2025 after peaking at ₹610.61 crores in 2023. Manufacturing expenses and other operating costs have also fluctuated but remained significant contributors to total expenditure.
Operating profit margins excluding other income have contracted from 7.5% in 2019 to 4.24% in 2025, indicating pressure on profitability despite higher absolute profits in earlier years. Similarly, the PAT margin has declined from 5.27% in 2019 to 3.58% in 2025, reflecting the impact of rising costs and reduced sales in the latest fiscal period.
Balance Sheet and Financial Position
D P Wires’ shareholder funds have shown consistent growth, rising from ₹122.66 crores in 2021 to ₹248.42 crores in 2025. The company’s reserves have also expanded significantly, reaching ₹232.92 crores in 2025 from ₹68.45 crores in 2019, signalling retained earnings accumulation and financial strengthening over time.
Total liabilities have increased in line with asset growth, with total debt rising sharply to ₹27.65 crores in 2025 from ₹2.99 crores in 2020, largely driven by short-term borrowings. The company’s net block of fixed assets has also expanded steadily, reflecting ongoing capital investment.
Cash Flow Dynamics
Cash flow from operating activities has been positive in recent years, with ₹51 crores generated in 2025, up from negative cash flow in 2021. However, cash flow from investing activities has been consistently negative, notably ₹120 crores outflow in 2025, indicating significant capital expenditure or investments. Financing activities have varied, with a positive inflow of ₹25 crores in 2025, suggesting fresh borrowings or equity infusion to support operations and growth.
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Summary and Investor Considerations
Overall, D P Wires has demonstrated a capacity for growth in revenue and profitability over the past six years, with notable peaks in 2023. The recent decline in sales and margins in 2025 highlights challenges that may be linked to market conditions or operational factors. The company’s balance sheet remains robust, supported by growing reserves and shareholder funds, though rising debt levels warrant monitoring.
Investors should weigh the company’s historical growth against recent volatility, considering the impact of cost pressures and capital expenditure on cash flows. The steady increase in book value per share from ₹72.68 in 2020 to ₹160.27 in 2025 reflects underlying value creation despite cyclical fluctuations.
In conclusion, while D P Wires has shown resilience and growth over the years, the recent financial year’s performance suggests a cautious approach, with attention to how the company navigates current market challenges and sustains profitability going forward.
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