Financial Highlights for H1 FY27

  • Revenue grew by 31% Year-on-Year to ₹712 crores compared to ₹543 crores in H1 FY26
  • Operating profit increased by 29% to ₹74.3 crores
  • Operating margin stood at 10.44%
  • Profit After Tax grew by 24% to ₹47.1 crores

Customer-wise Revenue Contribution (H1 FY27)

  • Government: 23%
  • Private: 69%
  • Export: 8%

Operational Metrics

  • Receivable days as on September 30, 2026 were at record low of less than 60 days (on cum GST sales)
  • Order book stood at approximately ₹829 crores
  • Volume growth for the quarter was 6%

New Manufacturing Facility Update

  • Plant and machinery installation completed at new manufacturing facility
  • Expected to start contributing from second half of FY27
  • Total investment in the plant: ₹40-45 crores
  • Revenue potential: ₹240-250 crores initially (based on 6x-7x asset turn)
  • Ramp-up expected over next 3-4 quarters

Product Mix (Q2 FY27)

  • High tension cables: 65%
  • Low tension cables: 28%
  • Conductor and other products: 7%

Finance Cost Guidance

  • Finance cost should remain below 15% of EBITDA
  • Currently hovering around 10-11% on six-month basis
  • Primarily related to working capital borrowings and vendor financing
  • No term debt for new plant - company remains debt-free on long-term basis

Margin Guidance and Commentary

  • Maintained EBITDA margin guidance of 10-11%
  • Gross margin decline attributed to product mix variation and order-specific margin differences
  • 80-90% of contracts have price variation clauses providing protection against commodity price volatility
  • Less than 20% of contracts are fixed price

Export Market Outlook

  • Export order book comprises 7-8% of total order book
  • Near-term challenges due to high sea freight costs, high insurance rates, and geopolitical situation
  • Long-term opportunity size described as "very huge and very encouraging"
  • US market shipments were challenging in last quarter due to logistics issues

Capacity and Growth Outlook

  • Current gross block: Approximately ₹200 crores (₹184 crores as of March 2026 plus ₹10-15 crores capitalization in H1)
  • Long-term capacity potential: ₹1,400-1,500 crores based on 7x asset turn
  • Ongoing capacity expansion expected through brownfield and greenfield projects
  • Maintained long-term revenue growth guidance of 20% CAGR

Raw Material and Inventory

  • Primarily use aluminum (not copper) in manufacturing
  • Do not use recycled aluminum in cable manufacturing
  • Inventory increase attributed to seasonal factors (H2-heavy business) and higher raw material prices
  • Inventory days within normal range

New Product Development

  • Solar cables (electron beam technology): Sales team engaging with customers, expecting results soon
  • Data center cables: Product development underway, considered huge future opportunity
  • No specific timeline provided for data center cable market entry

Customer Concentration

  • Top 10 customers contribute 40-45% of sales
  • 70-80% of sales come from repeat customers annually
  • Customer concentration not considered worrisome

Competitive Landscape

  • No immediate impact observed from UltraTech's entry into cable business
  • Competitive intensity expected to evolve with industry growth

Conference Call Participants

Management: Ashish Mangal (Managing Director), Murari Lal Poddar (CFO), Govind Saboo (IR Advisor)

Moderator: Natasha Jain (PhillipCapital India Private Limited)