💰 Financial Performance

Revenue Growth by Segment

The cable segment registered a healthy 33% growth in FY25, primarily driven by strong demand for copper cables. However, the EPC segment saw a significant decline, with revenue from original SWSM village orders dropping 47.5% to INR 835 Cr in FY25 from INR 1,592 Cr in FY24. The manufacturing segment previously witnessed 26% growth in FY23.

Profitability Margins

Profitability margins at the consolidated level moderated to 6.65% in FY25 from 7.27% in FY24. The PBILDT and PAT margins in FY23 were 9.72% and 5.32%, respectively. PBIT margins in the cable segment fell to approximately 4% in FY24 and FY25 from 10-11% in FY23 due to a lower share of high-margin OFC sales.

EBITDA Margin

PBILDT margin stood at 6.65% in FY25, a decrease from 7.27% in FY24. Core profitability was impacted by a change in revenue mix, with a rising share of lower-margin copper cables and a decline in high-margin EPC and OFC projects.

Capital Expenditure

The company added INR 28.43 Cr to Fixed Assets in FY24, mainly for the expansion of existing manufacturing capacity. Purchase of Property, Plant, and Equipment was INR 1.20 Cr for the half-year ended September 2025 compared to INR 8.49 Cr in the previous period.

Credit Rating & Borrowing

BCL has a 'Stable' outlook from CARE Ratings. The rating is supported by the MP Birla Group, which provides unsecured loans and corporate guarantees for working capital facilities. Average utilization of fund-based working capital limits was approximately 71% for the 12 months ending April 2025.

⚙️ Operational Drivers

Raw Materials

Copper and Optical Fibre are the primary raw materials. Copper cables typically have thinner and more volatile margins compared to Optical Fibre Cables (OFC).

Capacity Expansion

Manufacturing capacity was expanded in FY24 with a capital outlay of INR 28.43 Cr. Current installed capacity in units is not specified.

Raw Material Costs

Raw material costs are highly volatile, particularly for copper and optical fibre. The company uses selective hedging via forward contracts to manage exchange fluctuations related to imports, which totaled INR 153.10 Cr in FY23.

Manufacturing Efficiency

Inventory Turnover Ratio (ITR) improved 36.94% to 10.43 times in FY25 from 7.65 times in FY24 due to decreased inventory levels.

📈 Strategic Growth

Expected Growth Rate

25%

Growth Strategy

The company is diversifying its order book, with the energy sector's share increasing to 58% from 32%. Growth will be driven by the execution of higher-margin EPC orders and a gradual recovery in OFC demand expected in FY26. The company also aims for a Total Operating Income (TOI) of more than INR 1,000 Cr to achieve positive rating sensitivity.

Products & Services

Optical Fibre Cables (OFC), Copper Cables, and Engineering, Procurement, and Construction (EPC) services for the energy and water sectors (e.g., SWSM projects).

Brand Portfolio

Birla Cable, MP Birla Group.

Market Expansion

The company is expanding its presence in the energy sector, which now represents 58% of the order book profile.

Strategic Alliances

The company operates as part of the MP Birla Group, receiving financial support and corporate guarantees from group entities like VTL.

🌍 External Factors

Industry Trends

Telecom operators are shifting toward optical fibre cables, requiring network improvements. The industry faces stiff competition due to high installed capacity and the entry of players with inferior technology.

Competitive Landscape

The cable industry is characterized by cut-throat competition and players offering products at highly advantageous price levels, which pressures margins.

Competitive Moat

The company's moat is derived from being part of the resourceful MP Birla Group, which provides demonstrated financial support and operational synergies. This support is sustainable as long as group linkages remain strong.

Macro Economic Sensitivity

Demand is mainly dependent on the operational and capital expenditure from telecom and power distribution companies.

Consumer Behavior

Telecom operators are increasingly demanding optical fibre cables for network upgrades, shifting away from traditional copper-based infrastructure.

⚖️ Regulatory & Governance

Industry Regulations

The company must comply with accepted standards of propriety, regulatory compliances concerning business operations, and SEBI (Listing Obligations and Disclosure Requirements) Regulations.

Legal Contingencies

The company monitors current or future litigations as part of its financial risk identification, but specific case values are not disclosed.

⚠️ Risk Analysis

Key Uncertainties

Key risks include raw material price fluctuations (copper and optical fibre), execution risks in large tender-based EPC orders, and the timely realization of receivables from major projects.

Technology Obsolescence Risk

The company faces risks from competitors offering products with inferior technology that do not meet international standards, potentially affecting overall network quality.

Credit & Counterparty Risk

The company has exposure to an elongated collection cycle in the EPC segment, with the operating cycle stretching to 143 days in FY25 from 111 days in FY24.