💰 Financial Performance

Revenue Growth by Segment

Total Operating Income (TOI) grew by 26.5% YoY to reach INR 794.56 Cr in FY25, up from INR 627.99 Cr in FY24. The growth is driven by a 3-year CAGR of ~23%. Segmental contribution consists of Solar Cables (35%), Low Tension (LT) Power Cables (35%), and Instrumentation & Control Cables (30%).

Geographic Revenue Split

Not specifically disclosed by percentage, but the company is expanding into new domestic markets and segments, with a focus on Indian PSUs in the oil and hydrocarbon sectors.

Profitability Margins

Net Profit Margin improved to 1.85% in FY25 from 1.60% in FY24. However, PBILDT margins declined to 6.22% in FY25 from 6.62% in FY24 due to a shift in product mix toward lower-margin Power Cables, which now account for ~50% of revenue over the last three years.

EBITDA Margin

PBILDT margin stood at 6.22% in FY25, a decrease of 40 basis points from 6.62% in FY24. This compression is attributed to limited bargaining power with large clients and competitive pricing strategies to gain market share.

Capital Expenditure

The company has no significant capital expenditure plans envisaged for the near term as of late 2024; however, it maintains a gearing headroom with a current ratio of 1.53x to support future debt-funded expansion if required.

Credit Rating & Borrowing

Long-term bank facilities are rated CARE BBB; Stable and short-term facilities at CARE A3 (reaffirmed Oct 2025). Interest coverage ratio stood at 1.96x in FY25, improving from 1.69x in FY24.

⚙️ Operational Drivers

Raw Materials

Primary raw materials include copper, aluminum, and various polymers/PVC (implied by cable manufacturing). Specific percentage of total cost for each is not disclosed, but they are subject to high price volatility.

Key Suppliers

Not specifically named, though the company is an approved vendor for major clients like IOCL, HPCL, and BPCL who influence the supply chain ecosystem.

Capacity Expansion

Current installed capacity is approximately 65,000 core-cable-kilometres annually across manufacturing facilities in Chopanki and Kaharani, Rajasthan.

Raw Material Costs

Raw material costs are a significant portion of the cost structure; volatility in these prices directly strains the PBILDT margin, which fell to 6.22% in FY25 due to rising input costs and competitive pricing.

Manufacturing Efficiency

Inventory turnover ratio improved by 17.73% to 11.22x in FY25 from 9.53x in FY24, indicating better asset utilization and operational efficiency.

📈 Strategic Growth

Expected Growth Rate

23%

Growth Strategy

Growth is targeted through an order book of ~INR 260.00 Cr to be executed in FY26. Strategy involves increasing revenue from LT cables, expanding the customer base in the renewable energy and solar sectors, and leveraging long-standing relationships with PSUs and large private players like L&T and TATA Projects.

Products & Services

Control cables, Instrumentation cables, Low Tension (LT) Power cables, and Solar cables.

Brand Portfolio

CORDS®

New Products/Services

Increased focus on 1.9/3.3 kV Power Cables following the grant of BIS license and NABL accreditation for its test laboratory to serve the solar and hydrocarbon industries.

Market Expansion

Targeting new markets in the renewable energy, solar power, and hydrocarbon refinery segments to scale operations.

🌍 External Factors

Industry Trends

The cable industry is shifting from unorganized to organized sectors but remains highly fragmented. Demand is growing in the renewable and infrastructure segments, where CORDSCABLE is positioning itself with specialized products.

Competitive Landscape

Highly competitive and fragmented with many small and medium enterprises and several large players, restricting pricing flexibility.

Competitive Moat

Moat is built on a 50-year track record of the promoter, established relationships with PSUs, and specialized certifications (BIS, NABL) which act as entry barriers for high-spec industrial contracts.

Macro Economic Sensitivity

Highly sensitive to government policies and economic conditions affecting infrastructure and power sectors.

Consumer Behavior

Shift toward renewable energy and solar power is driving demand for specialized solar and LT power cables.

Geopolitical Risks

Volatility in global raw material costs and supply chain disruptions are noted as key external threats.

⚖️ Regulatory & Governance

Industry Regulations

Operations must comply with BIS standards for power cables and NABL accreditation for testing laboratories. Changes in environmental or safety standards pose regulatory risks.

Taxation Policy Impact

The company is subject to standard Indian corporate tax laws; however, it recently faced a GST dispute regarding input tax credit.

Legal Contingencies

Received a GST 'Order in Original' (No. 36/GST/BHD-TIJARA/25-26) on November 28, 2025, disallowing input tax credit for FY 2018-19 and 2019-20. Management states there is no material impact on financial or operational activities.

⚠️ Risk Analysis

Key Uncertainties

Volatility in raw material prices and intense industry competition are the primary uncertainties, potentially impacting margins by more than 0.5% as seen in the FY24-FY25 transition.

Geographic Concentration Risk

Manufacturing is concentrated in Rajasthan (Chopanki and Kaharani), making it sensitive to regional industrial policies.

Third Party Dependencies

High dependency on large PSU clients for repeat orders; however, the client base is diversified across oil, power, and infrastructure sectors.

Technology Obsolescence Risk

The company mitigates technology risks by equipping facilities with modern technology and maintaining stringent quality processes.

Credit & Counterparty Risk

Receivables management is critical; debtor turnover was 5.01x in FY25. The company deals with reputed PSUs and large corporates, which generally mitigates credit risk.