💰 Financial Performance

Revenue Growth by Segment

Revenue grew 33.5% YoY to INR 1,025.4 Cr in FY25. For 1HFY26, revenue reached INR 543.6 Cr, a 23% YoY increase. Segmental contribution in 1HFY26 was led by High Voltage (HV) cables at 55%, Low Voltage (LV) cables at 37%, and Conductors at 8%. The growth is primarily driven by a ramp-up in LT and HT wire capacities which constitute 88% of total revenue.

Geographic Revenue Split

Domestic sales dominated with 91% contribution in FY25 (up from 88% in FY24), while export share declined to 9% from 12% in the previous year. In 1HFY26, the split was 90% domestic and 10% exports. The shift reflects robust domestic demand from the power and infrastructure sectors.

Profitability Margins

Net Profit Margin improved to 6.32% in FY25 from 4.92% in FY24. PAT for FY25 was INR 65 Cr, representing a 72% YoY increase. 1HFY26 PAT rose 49% YoY to INR 38 Cr. Operating Profit Margin stood at 10.28% in FY25 and improved to 10.63% in 1HFY26 due to effective cost management and higher realization from a diversified product mix.

EBITDA Margin

EBITDA margin was 10.28% in FY25, a slight increase from 10.06% in FY24. In 1HFY26, it further improved to 10.63% (INR 57.8 Cr). The margin resilience is attributed to back-to-back raw material procurement which hedges against price volatility.

Capital Expenditure

Planned capex for FY26 is between INR 40 Cr and INR 50 Cr, with INR 25 Cr already deployed in 1HFY26. This includes the completion of a new solar cable facility at Reengus, Rajasthan, scheduled for commissioning in H2FY26 to drive FY27 growth.

Credit Rating & Borrowing

Credit rating was upgraded to CRISIL A (Stable) from CRISIL A-. Interest coverage ratio significantly improved to 6.90x in FY25 (from 3.73x in FY24) and reached 10.46x in 1HFY26. Borrowing costs are reduced following a debt reduction of INR 96.58 Cr via preferential allotment in June 2024.

⚙️ Operational Drivers

Raw Materials

Aluminum and Copper are the primary raw materials, accounting for 80% to 85% of the total product value. Fluctuations in these commodities directly impact the cost of goods sold.

Import Sources

Not specifically disclosed in available documents, though the company manages volatility through prudent inventory policies and cost-plus pricing on an order-to-order basis.

Capacity Expansion

Current expansion is focused on the Reengus plant for solar cables, expected to be completed by March 2026. This will allow for a gradual ramp-up in production volumes starting FY27.

Raw Material Costs

Raw material costs represent approximately 80-85% of revenue. The company mitigates price risk by placing procurement orders only after receiving firm client orders, ensuring margins remain stable despite commodity price swings.

Manufacturing Efficiency

Return on Capital Employed (ROCE) improved to 24.6% in FY25 from 22.9% in FY24. Capacity utilization is expected to improve further post-debottlenecking and commissioning of the Reengus facility.

📈 Strategic Growth

Expected Growth Rate

20%

Growth Strategy

The company aims to grow at 1.5x the industry rate by expanding its product portfolio into high-margin segments like solar cables and data center cables. Growth is supported by a robust order book of INR 721 Cr as of September 2025 and the commissioning of new capacities in H2FY26.

Products & Services

Low Voltage (LV) cables, Medium Voltage (MV) cables, High Voltage (HV) cables, Extra High Voltage (EHV) cables, solar cables, data center cables, and railway signaling cables.

Brand Portfolio

Dynamic Cables.

New Products/Services

Recently added solar cables and data center cables with advanced technology. These are expected to contribute to a gradual margin expansion post-FY26 ramp-up.

Market Expansion

Targeting the renewable energy sector and private infrastructure projects. The share of private sector orders increased to 73% in FY25 from 64% in FY24.

🌍 External Factors

Industry Trends

The industry is shifting toward renewable energy (solar) and specialized cables for data centers. The cables and wires sector is expected to grow at 12-13% annually, driven by rural electrification and real estate expansion.

Competitive Landscape

Highly fragmented and competitive industry with presence of large branded players who restrict the pricing power of smaller entities.

Competitive Moat

Moat is built on a diversified product mix, long-standing promoter experience, and a shift toward private sector clients which improves liquidity. Sustainability is supported by a low gearing ratio of 0.16x and strong interest coverage.

Macro Economic Sensitivity

Highly sensitive to infrastructure and power sector spending. Growth is linked to India's GDP, urbanization, and the establishment of smart cities.

Consumer Behavior

Increasing preference for branded and high-quality specialized cables in the private infrastructure and renewable sectors.

Geopolitical Risks

Exposure to global commodity price cycles for aluminum and copper, which are influenced by international trade and geopolitical stability.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with Indian Accounting Standards (Ind AS) and Section 133 of the Companies Act. Revenue recognition is monitored as a key audit matter to ensure control transfer compliance.

Environmental Compliance

The company spent the entire required amount as per Section 135 of the Companies Act, 2013, for CSR and statutory requirements.

Legal Contingencies

Auditors reported an unmodified opinion on internal financial controls. No whistle-blower complaints were received during the year. Specific pending court case values were not disclosed.

⚠️ Risk Analysis

Key Uncertainties

Volatility in raw material prices (80-85% of value) and the inherent cyclicality of the power and infrastructure industries pose risks to sustained revenue growth.

Geographic Concentration Risk

91% of revenue is concentrated in the domestic Indian market, making the company vulnerable to local economic downturns.

Third Party Dependencies

High dependency on aluminum and copper suppliers; however, the company uses multiple vendors to mitigate supply chain disruptions.

Technology Obsolescence Risk

The company is addressing technology risks by investing in new product lines like data center and solar cables to stay relevant in a shifting energy landscape.

Credit & Counterparty Risk

Receivables quality has improved, with debtor days falling to 84 days. The shift to 78% private sector clients reduces the risk of long payment cycles associated with government contracts.