Financial Performance Overview
Q4 FY26 Performance:
- Consolidated revenue: INR6,603 crores (26.7% YoY growth)
- Domestic revenue growth: 33.6% YoY
- Export revenue growth: 13.3% YoY
- EBITDA post forex: INR584 crores (19.3% YoY growth)
- PAT: INR254 crores (PAT margin 3.8%)
- One-time provisions totaling INR31 crores impacted PAT (gratuity/leave encashment: INR8 crores, ECB loan MTM impact, legal case provision)
- Adjusted PAT excluding one-time items: INR285 crores (14% YoY growth)
Full Year FY26 Performance:
- Annual revenue: INR22,902 crores (23.3% YoY growth, 29% CAGR over 5 years from INR6,406 crores in FY21)
- Domestic revenue growth: 29% YoY
- Export revenue growth: 12% YoY
- U.S. revenue growth: 50% YoY
- Export mix: 30% of total revenue
- EBITDA post forex: INR2,067 crores (23% YoY growth) at 9% margin
- PAT: INR977 crores (19% YoY growth) at 4.3% margin
Segmental Performance
Conductor Division (Q4 FY26):
- Revenue: INR3,764 crores (29.9% YoY growth)
- Volume growth: 9% YoY
- Domestic growth: 34.8% YoY
- Export growth: 14.6% YoY
- Export mix: 21.6% vs 24.5% YoY
- U.S. business: At par with Q4 FY25, but up 150% sequentially from Q3 FY26
- Premium products contribution: 49.3% vs 44.3% YoY
- EBITDA post forex: INR44,919 per metric ton vs INR41,430 YoY
Conductor Division (Full Year FY26):
- Revenue: INR12,712 crores (32.7% YoY growth)
- Volume growth: 8.6% YoY
- Domestic growth: 38.3% YoY
- Export growth: 15% YoY
- Premium products contribution: 45.8%
- EBITDA post forex: INR43,012 per metric ton vs INR36,683 YoY
- Order inflow: INR11,450 crores
- Order book (Mar 31, 2026): INR7,671 crores
- Installation: 1,949 circuit kilometers (highest ever)
Oil Division (Q4 FY26):
- Revenue growth: 5.6% YoY
- Volume: Approximately at par with previous year
- Global transformer oil volume: Down 1.4% YoY
- Domestic transformer oil volume: Up 8.5% YoY
- Automotive oil growth: 19.5% YoY
- Industrial lubricant growth: 6.1% YoY
- Export mix: 36.3% vs 41.7% YoY
- EBITDA post forex: INR5,656 per KL vs INR5,873 YoY
- Forex provision: ~INR15 crores due to rupee depreciation
Oil Division (Full Year FY26):
- Revenue: INR5,373 crores (6% YoY growth)
- Global transformer oil business growth: 3.5% YoY
- Domestic transformer oil business growth: 12.2% YoY
- Automotive oil growth: 11.1% YoY
- Industrial oil growth: 13.8% YoY
- Export mix: 39.8% vs 44.4% YoY
- EBITDA per KL: INR5,943 vs INR6,145 YoY
Cable Division (Q4 FY26):
- Revenue: INR1,903 crores (35% YoY growth)
- Domestic growth: 35.4% YoY
- Export growth: 33.6% YoY
- U.S. revenue growth: 52.2% YoY
- Export mix: 28.1% vs 28.4% YoY
- EBITDA post forex: INR202 crores (34.5% YoY growth) at 10.6% margin
- Pending order: ~INR1,800 crores
Cable Division (Full Year FY26):
- Revenue: INR6,220 crores (25.8% YoY growth)
- Domestic growth: 23.6% YoY
- Export growth: 30.6% YoY
- U.S. revenue growth: 46.7% YoY
- Export mix: 32.3%
- EBITDA post forex: INR633 crores (27.1% YoY growth) at 10.2% margin
- B2B channel business: Crossed INR500 crores (second year of operation)
- Distribution expansion: 120 new B2C distributors, 25 new B2B distributors
Industry Context and Market Developments
Renewable Energy:
- India added 50+ GW non-fossil fuel capacity in FY26 (highest ever)
- Total non-fossil capacity: 250-270 GW (India third largest in renewable deployment)
- Solar power crossed 140 GW with record 54 GW addition in FY26
- Wind power increased by approximately 6 GW in FY26
Data Centers:
- Current capacity: 1.5-1.7 GW
- Expected to scale to 5 GW by 2030 (optimistic estimate 7-8 GW)
- Expected investments: Over $30 billion
Transmission Infrastructure:
- Transformation capacity addition in FY26: 113,000 MVA (30% higher than FY25 but 11% below planned 126,000 MVA)
- 48% of capacity addition at 765 KV level (54,000 MVA commissioned)
- National Electricity Plan expects transmission network expansion from 5 lakh circuit km to 6.5 lakh circuit km by 2032
- Transformation capacity to scale from 1,429 GVA to 2,354 GVA
- Inter-regional transmission capacity to increase from 120 GW to 143 GW by 2027 and 168 GW by 2032
Capex and Capacity Utilization
FY26 Capex: INR740 crores
FY27 Planned Capex: INR1,500 crores
- Conductor division: INR400 crores
- Oil division: INR200 crores
- Cable division: INR850 crores
Current Capacity Utilization:
- Conductor division: 90-95%
- Cable division: 85-90%
- Oil division: 65-70%
- Lubricants: 85-90%
Outlook and Challenges
Near-term Headwinds:
- Significantly higher metal prices and premiums for aluminum and copper
- Higher freight costs including war premiums on export shipments
- Middle East supply chain disruptions affecting container transfers and insurance
- Manpower issues at project sites due to elections in Eastern India
- Domestic capacity additions increasing pricing pressure
- Severe Chinese competition in certain markets
- Large price difference between LME and SHFE (~$330-360/ton for aluminum)
Structural Growth Drivers:
- Energy infrastructure fundamentals remain intact
- Growth in T&D and rising electricity demand
- Data center expansion
- Growing EV presence
- Reconducting and upgradation of aging lines
- Significant investment in ultra-high voltage transmission infrastructure and HVDC
U.S. Market Opportunities:
- Strong traction led by data center opportunities
- Supplied to 3 major data center projects (~$15 million cable value)
- Receiving more RFQs for bidding
- Adding specific capacity for U.S. data center cables
- Extensive discussions with U.S. utilities for conductor business
- Tariff situation has settled providing better visibility
Medium-term Guidance:
- Conductor margins: INR35,000-36,000 per metric ton plus tailwinds (medium to long-term)
- Volume growth target: 10% YoY for conductors, 25% YoY for cables
Management Participants
- Mr. Kushal Desai – Chairman and Managing Director
- Mr. Chaitanya Desai – Managing Director
- Mr. Ramesh Iyer – Chief Financial Officer
- Moderator: Mr. Ambesh Tiwari – S-ancial Technologies