PRIMECAB - Prime Cable Ind.

📊 NSE: PRIMECAB 🏢 Cables - Electricals 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Revenue from operations grew 61.86% YoY to INR 90.71 Cr in H1FY26. Segment contributions: Power Transmission (53.5% of revenue, INR 48.64 Cr), Power Distribution (33.5%, INR 30.50 Cr), Power Generation (8%, INR 7.05 Cr), and Panel Builders (3%, INR 2.87 Cr).

Geographic Revenue Split

Top 12 states account for 88.3% of revenue. Key contributors in H1FY26: Jharkhand (INR 13.78 Cr), Rajasthan (INR 13.02 Cr), Karnataka (INR 10.17 Cr), West Bengal (INR 7.74 Cr), Uttar Pradesh (INR 5.31 Cr), and Bihar (INR 5.07 Cr).

Profitability Margins

PAT margin improved from 4.38% in H1FY25 to 6.04% in H1FY26 (up 166 bps). Gross margins saw a ~2% dip due to inventory valuation and raw material price variations, though operational efficiencies offset this at the EBITDA level.

EBITDA Margin

EBITDA margin stood at 10.72% in H1FY26, up 131 bps from 9.41% in H1FY25. EBITDA rose 84.44% YoY to INR 9.72 Cr, driven by operational leverage and improved capacity utilization.

Capital Expenditure

Planned capex of INR 150 Cr for a new Medium Voltage (MV) cable unit expected to be commissioned by Q2 FY27. Maintenance capex is minimal at ~INR 0.20 Cr (20 Lakhs) per year due to the newness of the Ghiloth plant.

Credit Rating & Borrowing

Total debt as of H1FY26 is INR 45.35 Cr, comprising short-term borrowings of INR 32.04 Cr (up from INR 24.27 Cr in FY25) and long-term borrowings of INR 13.31 Cr. Credit rating and specific interest rates were not disclosed in available documents.

⚙️ Operational Drivers

Raw Materials

Copper and Aluminum (implied by cable manufacturing) represent the primary inputs. Cost of raw materials consumed in H1FY26 was INR 79.87 Cr, accounting for ~88% of total revenue.

Capacity Expansion

Current installed capacity is INR 350 Cr. Planned expansion of INR 150 Cr for Medium Voltage cables will bring total capacity to INR 500 Cr by Q2 FY27.

Raw Material Costs

Raw material costs were INR 79.87 Cr in H1FY26 (88% of revenue). Management noted a 1-2% variation in costs due to inventory changes and raw material price fluctuations.

Manufacturing Efficiency

Capacity utilization improved to 55% in H1FY26 from 35% in FY25. Management targets >80% utilization for existing capacity by FY27 and 30-40% for the new MV unit by the end of next year.

📈 Strategic Growth

Expected Growth Rate

61.86%

Growth Strategy

Growth will be achieved through a INR 150 Cr capacity expansion into Medium Voltage (MV) cables by Q2 FY27, increasing total revenue potential to INR 500 Cr. The company is also diversifying into the private sector (now 46.5% of revenue) and expanding its geographic footprint beyond its top 12 states.

Products & Services

Aerial Bunched Cables (ABC), Control Cables, Instrumentation Cables, Communication Cables, House Wires, and Panel Wires.

Brand Portfolio

PRIMECAB

New Products/Services

Medium Voltage (MV) cables are the primary new product focus, supported by the upcoming INR 150 Cr capex unit.

Market Expansion

Expansion into new geographies and deeper engagement with private sector clients to balance the current 53.5% government/PSU revenue share.

🌍 External Factors

Industry Trends

Growing demand for power transmission and distribution infrastructure. Aerial Bunched Cables (ABC) are increasingly preferred in hilly, forest, and congested urban areas due to ease of installation and safety.

Competitive Landscape

Operates in a competitive tendering environment with a winning ratio of ~20%. Competitors are not specifically named.

Competitive Moat

Moats include NABL certified in-house testing, vendor approvals across 15 states, and a specialized product mix (Control cables) with higher margins (12-13%). These are sustainable due to the high barriers of entry for government vendor registrations.

Macro Economic Sensitivity

Highly sensitive to Indian infrastructure and power sector spending, as 53.5% of revenue is tied to government/PSU projects.

Consumer Behavior

Shift toward more efficient and safer distribution solutions like ABC cables in urban planning.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to quality standards and vendor approval processes from state electricity boards and PSUs. Specific pollution or pricing control regulations were not detailed.