MARCO - Marco Cables

📊 NSE: MARCO 🏢 Cables - Power 📅 Last Updated: 12/14/2025 9:36

💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations grew by 55.49% YoY, increasing from INR 71.65 Cr in FY24 to INR 111.41 Cr in FY25, driven by a 13% rise in sales volumes and better realizations from a favorable product mix.

Geographic Revenue Split

Not explicitly disclosed in percentage terms, but the company is actively expanding into the West Bengal market and re-engaging in tendering business to diversify its geographic footprint.

Profitability Margins

Net Profit margin improved from 4.24% in FY24 to 4.66% in FY25. Return on Equity (ROE) increased significantly by 43.48% YoY, rising from 11.25% to 16.15% due to improved operational efficiencies.

EBITDA Margin

PBILDT margin sustained above 12% in FY25, supported by the execution of high-margin contracts under the Revamped Distribution Sector Scheme (RDSS).

Capital Expenditure

The company has minimal maintenance capex requirements but has scheduled debt repayments of INR 2.77 Cr in FY26 and INR 0.77 Cr in FY27.

Credit Rating & Borrowing

Credit rating was upgraded in July 2025 to CARE BB+; Stable (Long Term) and CARE A4+ (Short Term) from CARE BB; Stable / CARE A4, reflecting improved debt coverage metrics and a reduced working capital cycle.

⚙️ Operational Drivers

Raw Materials

The company is susceptible to fluctuations in input prices for raw materials such as copper and aluminum, which are standard for the wire and cable industry. Direct and other related expenses accounted for INR 90.17 Cr (approximately 81% of total revenue) in FY25.

Capacity Expansion

Current installed capacity is not specified in MT, but the company reported a 13% YoY increase in sales volumes during FY25, indicating high utilization of existing capacity to meet RDSS demand.

Raw Material Costs

Direct expenses rose 57.28% YoY to INR 90.17 Cr in FY25, closely tracking the 55.49% revenue growth. Procurement strategies involve managing volatility in highly competitive fragmented markets.

Manufacturing Efficiency

Working Capital Turnover Ratio improved by 46.76%, from 2.13 in FY24 to 3.13 in FY25, indicating significantly higher sales generated per unit of working capital.

📈 Strategic Growth

Expected Growth Rate

55%

Growth Strategy

Growth will be achieved through the Revamped Distribution Sector Scheme (RDSS), which currently accounts for 90% of operations. The company is also expanding into the West Bengal market and re-entering the tendering business to leverage its confirmed unexecuted order book of INR 63 Cr and a pipeline exceeding INR 60 Cr.

Products & Services

The company manufactures and sells wires, cables, and conductors, primarily serving the power distribution sector and EPC contractors.

Brand Portfolio

Marco Cables & Conductors.

Market Expansion

Targeting the West Bengal region and increasing engagement with private turnkey players to improve liquidity and revenue visibility.

Market Share & Ranking

Not disclosed in available documents; however, the industry is noted as being highly fragmented with numerous organized and unorganized players.

🌍 External Factors

Industry Trends

The industry is evolving with strong tailwinds from the central government's RDSS scheme for electricity distribution. There is a notable shift in the industry from direct state DISCOM contracts to private EPC contractors to manage working capital better.

Competitive Landscape

Intense competition from both organized and unorganized players, which hampers the ability of individual firms to scale rapidly or command premium pricing.

Competitive Moat

The company's moat is built on the 30+ years of experience of promoters Sugnomal and Sumit Kukreja and an established customer base, which helps in securing repeat orders in a fragmented market.

Macro Economic Sensitivity

Highly sensitive to government infrastructure spending, particularly the RDSS scheme which drives 90% of current business volume.

⚖️ Regulatory & Governance

Industry Regulations

Operations are heavily influenced by the Revamped Distribution Sector Scheme (RDSS) guidelines and state DISCOM tendering standards.

Environmental Compliance

ESG risks are currently listed as 'Not Applicable' in credit rating assessments.

Legal Contingencies

The company reported zero pending litigations in its financial statements as of March 31, 2025.

⚠️ Risk Analysis

Key Uncertainties

Key risks include the working capital-intensive nature of operations (199-day cycle) and the susceptibility of margins to volatile input prices for metals.