💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue for H1 FY26 reached INR 72.44 Cr, representing a 21.58% YoY growth from INR 59.58 Cr in H1 FY25. Standalone revenue for FY24 grew 85.44% YoY to INR 101.10 Cr from INR 54.52 Cr in FY23, driven by scaling operations in the copper segment.

Geographic Revenue Split

The company is headquartered in Ahmedabad, Gujarat, with primary operations in the Bhayla and Bavla industrial areas. Specific % split by region is not disclosed in available documents.

Profitability Margins

Net Profit Ratio for FY25 was 6.35%, a 27.44% decrease from 8.76% in FY24. This decline was primarily due to high depreciation charges (INR 3.15 Cr in H1 FY26) following substantial fixed asset additions. ROE fell 72.15% YoY to 10.24% in FY25.

EBITDA Margin

EBITDA margin improved significantly from 3.31% in FY22 to 15.93% in FY24, a growth of 381% in margin efficiency. EBITDA grew 355% YoY in FY24 to INR 16.11 Cr from INR 3.54 Cr in FY23.

Capital Expenditure

The company undertook substantial capital expenditure of INR 32.99 Cr in FY25 for fixed asset additions. An additional INR 10.94 Cr was spent on fixed assets during H1 FY26 to support the scaling of copper strip and wire production.

Credit Rating & Borrowing

Assigned 'IVR BBB- / Stable' for long-term facilities and 'IVR A3' for short-term facilities. Finance charges for H1 FY26 were INR 2.50 Cr. Debt-Equity ratio improved 80.06% to 0.47x in FY25 following the INR 49.99 Cr IPO infusion.

⚙️ Operational Drivers

Raw Materials

Copper is the primary raw material, used for manufacturing bare copper strips, conductors, and wires. Specific % of total cost is not disclosed, but profitability is highly vulnerable to copper price fluctuations.

Capacity Expansion

Revenue scale increased from INR 27.69 Cr in FY22 to INR 101.10 Cr in FY24, reflecting a 265% increase in operational scale. Planned expansion is supported by the INR 49.99 Cr IPO proceeds for long-term working capital and capex.

Raw Material Costs

Raw material costs are a major component of the cost of goods sold, which stood at INR 119.46 Cr for FY25. Profitability is sensitive to adverse fluctuations in copper prices due to the fragmented nature of the sector.

Manufacturing Efficiency

Manufacturing efficiency is impacted by high depreciation from new asset additions. ROCE decreased 44.59% YoY to 17.72% in FY25 as the capital base expanded faster than immediate EBIT growth.

📈 Strategic Growth

Expected Growth Rate

21.58%

Growth Strategy

Growth is driven by the 100% acquisition of Manglam Envago Products Private Limited, consolidating its assets and liabilities. The company is utilizing INR 49.99 Cr in IPO proceeds to scale operations, launch new products, and expand its footprint in the copper conductor and wire market.

Products & Services

Bare copper strips, copper conductors, and copper wires used for electrical conductivity applications.

Brand Portfolio

DCG Cables & Wires (formerly DCG Copper Industries).

New Products/Services

New product launches in FY25 contributed to a 40.73% increase in inventory holding requirements to support market entry.

Market Expansion

Expansion is targeted through the National Stock Exchange SME platform listing (April 2024) to increase financial flexibility and market visibility.

Strategic Alliances

Acquired 100% shareholding of Manglam Envago Products Private Limited to enhance consolidated group operations.

🌍 External Factors

Industry Trends

The copper industry is evolving with increased demand for conductors and wires; however, it remains highly competitive and fragmented, requiring companies to scale operations to maintain margins.

Competitive Landscape

Operates in a highly fragmented sector with significant competition from both organized and unorganized players.

Competitive Moat

Moat is based on the experienced promoter's track record (since 2017) and established cordial relationships with suppliers and customers, providing a stable base for scaling.

Macro Economic Sensitivity

Sensitive to global economic conditions and the aftermath of the global health pandemic, which management monitors for impacts on carrying amounts of financial assets.

Consumer Behavior

Demand is driven by industrial applications requiring high-conductivity copper products.

Geopolitical Risks

Vulnerable to global copper price volatility which is often influenced by international trade and geopolitical factors.

⚖️ Regulatory & Governance

Industry Regulations

Complies with SEBI (LODR) Regulations, specifically Regulation 33 for financial result reviews by statutory auditors.

Taxation Policy Impact

Direct taxes paid in H1 FY26 were INR 1.99 Cr. The company complies with India GAAP and Section 133 of the Companies Act 2013.

Legal Contingencies

No specific pending court cases or labor disputes with INR values were disclosed in the provided financial or audit reports.

⚠️ Risk Analysis

Key Uncertainties

Volatility in raw material (copper) prices and the impact of future economic conditions on trade receivables and inventory carrying amounts.

Geographic Concentration Risk

Primary manufacturing and registered office concentration in Ahmedabad, Gujarat.

Third Party Dependencies

High dependency on copper suppliers; established relationships are cited as a key strength for procurement.

Credit & Counterparty Risk

Trade receivables are monitored for significant impact; current assets increased by INR 10.42 Cr in H1 FY26, suggesting a need for efficient collection to maintain liquidity.