💰 Financial Performance

Revenue Growth by Segment

Specialty Cables business recorded 19% QoQ growth in Q2 FY26. Overall revenue for FY 2024-25 was INR 1,506.12 million, representing a marginal decline of 0.75% from INR 1,517.57 million in FY 2023-24. Q2 FY26 consolidated revenue grew 20% QoQ to INR 344 million.

Geographic Revenue Split

Not disclosed in available documents; however, the company notes moderate growth in the domestic market.

Profitability Margins

Net Profit Ratio declined from 7.66% in FY 2023-24 to -13.06% in FY 2024-25. Operating Margin Ratio fell from 16.30% to -13.80% over the same period due to stagnant revenues and rising operating costs.

EBITDA Margin

EBITDA margin collapsed from 24.03% in FY 2023-24 to 1.72% in FY 2024-25. EBITDA fell 92.81% from INR 364.93 million to INR 26.23 million, primarily due to losses in the Train Control Division where expenditure is being incurred without corresponding revenue.

Capital Expenditure

Planned Capex of INR 24.38 crore for the development of the Electronic Interlocking System, with INR 1.7 crore incurred as of September 2025. Total PP&E stood at INR 271 million as of September 2025.

Credit Rating & Borrowing

Not disclosed in available documents. Finance costs increased by 78% from INR 43.14 million in FY 2023-24 to INR 76.75 million in FY 2024-25.

⚙️ Operational Drivers

Raw Materials

Copper and Chemicals (specifically for specialty cable production).

Capacity Expansion

Specialty Cables division has an annual installed capacity of 1,900 MT. The company is developing scalable manufacturing infrastructure for large-scale production of the Kavach train control system.

Raw Material Costs

Raw material consumption costs increased sharply in FY 2024-25, contributing to a total operating expenditure of INR 1,503.17 million, up 30.27% from INR 1,153.87 million in FY 2023-24.

Manufacturing Efficiency

Capacity utilization is expected to rise with new product launches in Solar and EV sectors; however, current utilization metrics were not specifically quantified.

📈 Strategic Growth

Expected Growth Rate

20%

Growth Strategy

Growth will be driven by the commercialization of the Kavach (Train Control) system in FY26 following safety audits, entry into the Solar cable market (BIS approval secured), and expansion into EV and submarine cable applications. The company is utilizing INR 149.72 crore of IPO proceeds for long-term working capital to support these high-growth segments.

Products & Services

Specialty cables for Defence and Private clients, Kavach (Train Control System), Electronic Interlocking Systems, Solar cables, and EV cables.

Brand Portfolio

QUADFUTURE, Quadrant Future Tek.

New Products/Services

Solar cables (BIS approved) and EV cables (in pipeline) are expected to drive higher capacity utilization and revenue diversification.

Market Expansion

Targeting high-growth sectors including Electric Vehicles (EV), Renewables (Solar), and Submarine applications to diversify the revenue mix.

🌍 External Factors

Industry Trends

The industry is shifting toward irradiated cables for EVs and renewables. The company is positioning itself to capture global demand for these advanced cables through specialized certifications and manufacturing capabilities.

Competitive Landscape

Faces intense competition in the specialty cable market and requires continuous technological upgrades to maintain its position in the railway signaling sector.

Competitive Moat

Moat is built on technological expertise in safety-critical systems (Kavach) and advanced manufacturing certifications (BIS for Solar). These are sustainable due to high entry barriers in safety-critical railway technology.

Macro Economic Sensitivity

Sensitive to raw material price volatility (Copper) and domestic infrastructure spending, particularly in Railways and Renewables.

Consumer Behavior

Increasing demand for green energy (Solar) and electric mobility (EV) is shifting the product requirement toward specialized, high-durability cables.

Geopolitical Risks

Exposed to geopolitical events that may cause supply chain disruptions for raw materials.

⚖️ Regulatory & Governance

Industry Regulations

Safety audit process for the Kavach system is a critical regulatory requirement for the Train Control Division. Secured BIS approval for Solar cables to enter the renewable energy market.

Taxation Policy Impact

Effective tax rate impacted by deferred tax assets of INR 65.31 million in FY 2024-25 due to losses.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the timeline for the Kavach system safety approval, which is critical for the company's return to profitability in FY26.

Geographic Concentration Risk

Operations are concentrated in a single manufacturing unit in Punjab, India.

Technology Obsolescence Risk

High risk due to the need for continuous technological upgrades in electronic interlocking and train control systems.

Credit & Counterparty Risk

Trade Receivables Turnover Ratio declined 37.04% from 5.49 to 3.46, indicating a slowdown in collections. Trade receivables stood at INR 310 million (Current + Non-current) as of September 2025.