💰 Financial Performance

Revenue Growth by Segment

Total operating income grew by 3.77% YoY, reaching INR 351.76 Cr in FY25 compared to INR 338.97 Cr in FY24. Growth was primarily driven by higher realization prices in the aluminum rod segment rather than volume increases. Revenue for the first half of FY26 (until September 2025) reached INR 183.4 Cr, with significant growth anticipated from the new finished cable segment.

Geographic Revenue Split

Not disclosed in available documents. The company operates a manufacturing facility in Sonipat, Haryana, serving the domestic market.

Profitability Margins

PAT margins improved significantly from 1.47% in FY24 to 2.63% in FY25, an increase of 116 basis points. Reported Profit After Tax (PAT) rose by 84.37% to INR 9.20 Cr in FY25 from INR 4.99 Cr in FY24. Upward rating sensitivity is tied to achieving operating margins of 5.5-6% through the commercialization of the power cables segment.

EBITDA Margin

Core profitability is expected to improve as the company shifts toward finished cable manufacturing; operating margins are currently targeted to reach 5.5-6% to trigger a rating upgrade. Net cash accruals were INR 10.1 Cr in FY25 and are projected to grow by 48-58% to reach INR 15-16 Cr over the medium term.

Capital Expenditure

The company is establishing a new manufacturing unit for finished cables funded through IPO proceeds, expected to be operational by December 2025. This expansion is the primary driver for the projected net worth increase from INR 24.6 Cr in FY25 to INR 90-95 Cr in FY26.

Credit Rating & Borrowing

Crisil assigned a long-term rating of 'Crisil BBB-/Stable' and a short-term rating of 'Crisil A3'. Interest coverage ratio was strong at 9.57 times in FY25 and is projected to nearly double to 18-19 times in FY26 due to reduced debt reliance and higher accruals.

⚙️ Operational Drivers

Raw Materials

Aluminum scrap and aluminum ingots are the primary raw materials used for manufacturing aluminum rods, ash, and dross.

Import Sources

Not disclosed in available documents; however, promoters have a background as traders of aluminum scrap and ingots.

Key Suppliers

Not disclosed in available documents. The company leverages established relationships built by promoters over a decade in the industry.

Capacity Expansion

Current installed capacity is 2,000 tons of aluminum rod per month (24,000 tons per annum). A new unit for finished cables is under development and scheduled for completion by December 2025.

Raw Material Costs

Raw material costs are highly sensitive to global aluminum price fluctuations. In FY25, revenue growth was driven by price realizations rather than volume, indicating that input cost volatility directly dictates the top-line and margin profile.

Manufacturing Efficiency

Bank limit utilization averaged 60.25% through September 2025, suggesting efficient use of working capital and sufficient liquidity cushion for operational exigencies.

📈 Strategic Growth

Expected Growth Rate

15-20%

Growth Strategy

Growth will be achieved through forward integration into the finished power cables segment, which is expected to be operational by December 2025. This move aims to capture higher value-add margins and scale operations beyond the current modest level of INR 351.76 Cr. The company is also utilizing IPO proceeds to strengthen its capital base, which is projected to grow net worth by approximately 265-285% by FY26.

Products & Services

Aluminum wire rods (9.5mm), aluminum ash, aluminum dross, and upcoming finished power cables.

Brand Portfolio

Jainik Power Cables (JPCL).

New Products/Services

Finished power cables, with commercialization expected to drive operating margins toward the 5.5-6% range.

Market Expansion

Expansion into the finished cable sector marks a shift from being a raw material/intermediate supplier to a finished goods manufacturer for the power sector.

Market Share & Ranking

Not disclosed in available documents; currently characterized as having a 'modest scale of operations'.

🌍 External Factors

Industry Trends

The industry is shifting toward integrated manufacturing. JPCL is positioning itself to move from rod manufacturing (intermediate) to finished cables (end-product) to capture higher margins and mitigate the risks of being a pure-play commodity processor.

Competitive Landscape

The company faces competition from both large-scale cable manufacturers and smaller regional aluminum rod processors.

Competitive Moat

The moat is based on the promoters' extensive 10-year industry experience and their transition from traders to manufacturers, which provides a robust understanding of the scrap-to-finished-product value chain. This is sustainable as it facilitates better procurement and customer retention.

Macro Economic Sensitivity

Highly sensitive to global commodity price cycles, specifically aluminum, which dictates realization prices and revenue growth.

Consumer Behavior

Demand is driven by infrastructure and power sector requirements for aluminum-based cabling and wiring.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to manufacturing standards for aluminum products and safety norms for power cable production.

⚠️ Risk Analysis

Key Uncertainties

Project-related risk is high as the company enters the finished cable sector, which is distinct from its current rod manufacturing business. Failure to scale this unit effectively by Dec 2025 could impact growth projections by 10-15%.

Geographic Concentration Risk

Manufacturing is concentrated in a single facility in Sonipat, Haryana.

Third Party Dependencies

Dependency on aluminum scrap and ingot suppliers; however, promoters' trading background mitigates this risk.

Technology Obsolescence Risk

The shift to finished cable manufacturing requires updated technology and processes compared to simple rod drawing.

Credit & Counterparty Risk

Receivables quality is not explicitly detailed, but the company maintains a healthy current ratio of 1.4 times.