Financial Performance Highlights
Q4 FY26 Performance:
- Revenue: Increased 22% year-on-year and 22% quarter-on-quarter
- EBITDA: Improved 7% year-on-year and 22% quarter-on-quarter
- PAT: Increased 6% year-on-year and 19% quarter-on-quarter
Full Year FY26 Performance:
- Revenue: Increased 19% compared to previous year
- EBITDA: Improved 14% compared to previous year
- PAT: Improved 14% compared to previous year
Segment-wise Performance
Electrical Cables Segment:
- Q4 Revenue: INR 1,697 crores (record quarterly performance)
- Q4 Growth: 22% YoY and 21% QoQ
- Full Year Growth: 22% higher than previous year
- Q4 EBIT: 30% higher QoQ and 17% higher YoY
- Full Year EBIT: 18% better than last year
Product-wise Performance (Volume Terms):
- Auto batteries: ~30% higher
- Industrial flexibles: ~17% higher
- Power cables: ~21% higher
- Solar cables: Nearing capacity utilization (introduced last year)
- Building wire: Marginal volume growth (impacted by copper price increases)
- Agricultural applications: Down 15-16% (impacted by monsoon patterns)
Communication Cables Segment:
- Q4 Revenue: 30% higher YoY and QoQ
- Full Year Revenue: Flat overall
- EBIT Margin: ~6% for full year
Raw Material Cost and Pricing Impact
- Middle East disturbances caused cost increases across raw materials
- INR depreciation contributed to higher production costs
- 14 price changes implemented during the year (all upward)
- Effective market price change: 24-25% across most electrical SKUs
- Inventory increased by approximately INR 300 crores due to precautionary buying
Capacity Expansion and Capex
FY26 Capex: INR 240 crores (including infusion into Sumitomo JV)
FY27 Planned Capex: INR 300 crores total
- INR 200 crores for capacity expansion plans
- INR 100 crores to complete optic fiber preform-related capex
Optic Fiber Expansion Status:
- Preform plant commissioned in March 2026
- Plant requires 2-3 months to stabilize (currently performing encouragingly)
- Fiber draw capacity expansion to be completed by July 2026
- Current fiber draw capacity: 4 million km (utilization: ~3.2 million km)
- Target capacity: 8 million km by end of Q2 FY27
- Revenue potential at expanded capacity: ~INR 750 crores (subject to product mix)
Joint Venture Performance
Sumitomo EHV JV:
- Turned profitable in FY26
- Revenue: INR 450 crores
- Profit: INR 21 crores
- Order book: INR 380 crores at year start
- Capacity utilization: >80% for key machinery
- Planning capacity enhancement to reach 70-75% overall utilization
Supply Chain Challenges
- Fiber prices hardened towards end of Q3 FY26 due to data center demand explosion in US/Europe
- Military applications in Russia and Middle East consuming significant fiber supply
- Raw material availability constrained (Chinese and Japanese capacities blocked)
- Germanium supply challenges for preform production
- Domestic contracts at fixed prices limiting immediate benefit from price increases
Export Performance
- FY25 exports: ~INR 30 crores
- FY26 exports: INR 52 crores
- Target: 2-3% of revenue from exports over next 2 years
- Export team revamped and operational for 6 months
FMEG Business Performance
- Fans: No volume growth (impacted by unseasonal rains and BIS norm changes)
- PVC conduits: Operating at ~85% capacity utilization
- Portfolio review and distribution strengthening underway
Management Commentary and Outlook
- Margin pressure expected to be temporary with costs pass-through capability
- Communication segment benefits expected in H2 FY27 after contract renewals
- Preform plant benefits expected from Q2/Q3 FY27 onwards
- Electrical segment has ~15% headroom without major investments
- Retail vs project mix in electrical: Now approximately 2/3 retail, 1/3 project (previously 80/20)
- No formal guidance provided due to geopolitical uncertainty in Middle East
Operational Metrics
- Cash flow from operations: INR 50 crores lower than last year
- Communication segment: ~75% from optic fiber cables
- Preform benefit expectation: 5-10% better than market prices after stabilization