UNIVCABLES - Universal Cables

📊 NSE: UNIVCABLES 🏢 Cables - Power 📅 Last Updated: 12/14/2025 14:46

💰 Financial Performance

Revenue Growth by Segment

Total Income from Operations grew by 25.53% YoY in H1 FY26, reaching INR 1,414.47 Cr compared to INR 1,126.81 Cr in H1 FY25. The cable business is the primary driver, contributing approximately 84% of Total Operating Income (TOI) in FY25, up from 72% in FY23.

Geographic Revenue Split

Not specifically disclosed by region, but the company maintains an export presence that provides a natural hedge; exports contributed to a favorable foreign currency movement income of INR 4.54 Cr in FY24 and INR 5.85 Cr in FY23.

Profitability Margins

Net Profit Margin for H1 FY26 improved significantly to 3.96% (INR 56.04 Cr) from 1.82% (INR 20.56 Cr) in H1 FY25. However, FY25 annual PBILDT margins saw a decline to 7.46% from 8.21% in FY24 due to a higher mix of lower-margin products.

EBITDA Margin

PBILDT margin stood at 7.46% in FY25, a decrease of 75 basis points from 8.21% in FY24. This compression was driven by increased sales of lower-margin aluminium conductor cables and lower realizations in the Optical Fiber Cable (OFC) segment.

Capital Expenditure

The company is currently executing a major capacity expansion project with a planned investment of INR 500 Cr. This expansion is focused on a new plant to increase the production of high-margin Extra High Voltage (EHV) cables.

Credit Rating & Borrowing

Maintains a 'Stable' outlook from CARE Ratings. Borrowing costs are managed through a mix of rupee debt and foreign currency borrowings; the company's overall gearing improved to 0.31x as of March 31, 2025, from 0.34x in the previous year.

⚙️ Operational Drivers

Raw Materials

Key raw materials include aluminium and copper (implied by cable types) and materials for Optical Fiber Cables. Aluminium conductor cables specifically impacted margins in FY25 due to their lower-margin profile.

Capacity Expansion

Ongoing INR 500 Cr capacity expansion for EHV cables. Current performance is supported by an adequate order book of INR 1,443 Cr as of mid-2023, providing medium-term revenue visibility.

Raw Material Costs

Raw material costs are a significant portion of the cost structure; the company established a dedicated hedging desk in January 2022 to mitigate price volatility. In FY25, a shift toward aluminium-based products reduced overall realizations.

Manufacturing Efficiency

Capacity utilization is expected to improve with the commissioning of the new INR 500 Cr plant from FY26 onwards, shifting the product mix toward higher-margin EHV cables.

📈 Strategic Growth

Expected Growth Rate

25%

Growth Strategy

Growth is targeted through the commissioning of a new manufacturing facility and a strategic shift toward the high-value EHV cable segment. The company is leveraging its INR 1,443 Cr order book and its status as a dominant player in the EHV and EPC turnkey segments to capture power sector demand.

Products & Services

EHV (Extra High Voltage) power cables, MV (Medium Voltage) power cables, Optical Fiber Cables (OFC), and EPC (Engineering, Procurement, and Construction) turnkey contracts for power infrastructure.

Brand Portfolio

Unistar

New Products/Services

Increased focus on high-margin EHV cables and turnkey EPC projects is expected to drive margin improvement from FY26 onwards.

Market Expansion

Expansion is focused on increasing capacity for the EHV segment to serve private power companies, railways, and state utilities.

Market Share & Ranking

Identified as a dominant player in the EHV cable segment in India.

Strategic Alliances

Part of the MP Birla Group, which provides financial and management support.

🌍 External Factors

Industry Trends

The cable industry is growing but remains highly competitive. There is a clear trend toward higher voltage (EHV) requirements in the power grid, where the company is positioning itself to capture higher margins.

Competitive Landscape

Faces competition from both large organized players and smaller unorganized manufacturers, particularly in the low-voltage and standard cable segments.

Competitive Moat

The company's moat is built on its established reputation in the specialized EHV segment and its ability to execute complex EPC turnkey projects, which are harder for unorganized players to replicate.

Macro Economic Sensitivity

Highly sensitive to government and private infrastructure spending in the power and railway sectors.

Consumer Behavior

Demand is driven by institutional and industrial procurement cycles rather than individual consumer trends.

Geopolitical Risks

Exposure to global commodity price fluctuations for aluminium and copper which are critical for cable manufacturing.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Companies Act 2013 and Section 148 regarding the maintenance of cost records for specified products. Compliance is monitored by a Risk Management Committee under Listing Regulations.

Environmental Compliance

The company spent INR 76.01 Lakhs on CSR initiatives in FY25 against an obligation of INR 127.47 Lakhs, with the unspent amount of INR 51.69 Lakhs transferred to a special account for ongoing projects.

Taxation Policy Impact

The company reported a Net Profit before Tax of INR 107.24 Cr for H1 FY26, with a corresponding Net Profit after Tax of INR 80.59 Cr, implying an effective tax rate of approximately 24.8%.

Legal Contingencies

No instances of fraud were reported by statutory or secretarial auditors for FY25. There are no reported legal cases that impact the company's status as a going concern.

⚠️ Risk Analysis

Key Uncertainties

Volatility in raw material prices and the competitive intensity of the cable industry are primary risks. Execution delays in EPC projects can impact quarterly revenue by over 15% as seen in historical Q-o-Q fluctuations.