PLAZACABLE - Plaza Wires

📊 NSE: PLAZACABLE 🏢 Cables - Power 📅 Last Updated: 12/14/2025 11:03

💰 Financial Performance

Revenue Growth by Segment

The company achieved a standalone revenue of INR 218.18 Cr in FY25, representing a growth of 9.74% compared to INR 198.81 Cr in FY24. Revenue is primarily driven by the 'Plaza Cable' brand of copper wires and cables, with the company currently operating at nearly 100% capacity.

Geographic Revenue Split

Revenue is predominantly domestic (India) with a pan-India distributor channel of 500+ dealers and 15+ branches. International expansion is in early stages, with exports to Bhutan contributing INR 0.097 Cr (less than 0.1% of total revenue) in FY25.

Profitability Margins

Profitability has faced significant pressure; Net Profit Ratio declined from 1.85% in FY24 to 1.32% in FY25. Operating margins, which historically ranged between 7-8%, dropped to 3.0-4.0% in FY24 and further to 3.1% in H1 FY25 due to IPO expenses and copper price volatility.

EBITDA Margin

Operating margin was reported at 5.0% for FY24 and 3.1% for H1 FY25, a sharp decline from historical levels. This contraction is attributed to fixed-price contracts signed during high copper price volatility and increased operational costs from capacity expansion.

Capital Expenditure

The company is doubling its manufacturing capacity through a new facility at Baddi, Himachal Pradesh. Total IPO proceeds allocated for this capital expenditure were INR 22.00 Cr, with the plant scheduled to commence operations in February 2025.

Credit Rating & Borrowing

CRISIL has reaffirmed a rating of 'CRISIL BBB-/Negative'. The negative outlook reflects concerns over weakened operating margins. Interest coverage ratio is projected to be in the range of 2.5-3.0 times for FY25, down from 4.3-4.5 times in FY24.

⚙️ Operational Drivers

Raw Materials

Copper is the primary raw material, accounting for approximately 75-80% of the total revenue cost. Other materials include PVC compounds for wire insulation.

Import Sources

Not specifically disclosed in available documents, though the company notes high sensitivity to global copper price fluctuations.

Capacity Expansion

The existing plant at Baddi is operating at full capacity (generating ~INR 198-218 Cr revenue). A new facility is being set up to double capacity, aiming to support revenue exceeding INR 300 Cr by FY26.

Raw Material Costs

Raw material costs represent 75-80% of revenue. In FY25, the company faced increased input costs which led to a 21.57% decline in Net Profit (INR 2.88 Cr in FY25 vs INR 3.68 Cr in FY24) despite higher sales.

Manufacturing Efficiency

The company is currently functioning at nearly full capacity. Manufacturing efficiency is expected to improve as the new facility stabilizes and fixed cost absorption increases with higher scale.

Logistics & Distribution

The company operates through a pan-India channel with over 15 branches and 500 dealers to manage nationwide distribution of its wire products.

📈 Strategic Growth

Expected Growth Rate

36%

Growth Strategy

Growth will be achieved by doubling manufacturing capacity with the new plant starting Feb 2025, targeting government and private projects, and expanding the distributor network. Revenue is projected to rise from ~INR 220 Cr to over INR 300 Cr in FY26.

Products & Services

Various types of copper wires and cables sold under the 'Plaza Cable' brand.

Brand Portfolio

Plaza Cable

New Products/Services

Expansion into international markets (starting with Bhutan) and potential new product variants following the capacity doubling in FY25.

Market Expansion

Targeting international markets beyond Bhutan and increasing penetration in Indian government and private infrastructure projects.

Market Share & Ranking

Not disclosed in available documents; however, the company is noted to face intense competition from unorganized players.

Strategic Alliances

The company does not have any subsidiaries, joint ventures, or associate companies as of March 31, 2025.

🌍 External Factors

Industry Trends

The industry is shifting toward organized players, but remains fragmented. Future growth is tied to infrastructure development and the stabilization of raw material costs. PWL is positioning itself by doubling capacity to capture larger project orders.

Competitive Landscape

Intense competition from both large organized players and a significant number of unorganized regional manufacturers.

Competitive Moat

Moat is based on the 'Plaza Cable' brand and a 20-year promoter track record. However, the moat is relatively narrow due to the commoditized nature of wires and intense competition from unorganized players.

Macro Economic Sensitivity

Highly sensitive to global copper prices and infrastructure spending in India. A slowdown in construction would directly reduce demand for house wires and cables.

Consumer Behavior

Increasing demand for branded, high-quality electrical wires in residential and commercial construction.

Geopolitical Risks

Global developments impacting copper supply chains and trade relations with neighboring countries like Bhutan for export growth.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with manufacturing standards for electrical components and safety norms at the Baddi facility.

Taxation Policy Impact

Effective tax rate for FY25 was approximately 26.3% (Tax expense of INR 1.03 Cr on PBT of INR 3.91 Cr).

Legal Contingencies

The company reported no material changes or commitments affecting its financial position between the end of FY25 and the date of the Board's report.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the timely stabilization of the new manufacturing plant; a delay could result in stagnant revenues and margins dropping below 4%, significantly impacting cash accruals.

Geographic Concentration Risk

High concentration in India, with minimal (less than 1%) revenue from international markets like Bhutan.

Third Party Dependencies

High dependency on copper suppliers, as raw material constitutes 75-80% of the cost structure.

Technology Obsolescence Risk

Low risk of immediate obsolescence for copper wires, but a shift toward alternative materials or wireless technologies in specific niches could pose long-term risks.