Q2 FY27 Financial Performance (Standalone)

  • Net Sales: ₹3,776 crores, a growth of 38.52% YoY.
  • Wire and Cable Sales: Grew by 39.5% YoY.
  • Operating Margin: 9.97% vs. 9.88% in Q2 FY26.
  • EBITDA: ₹401 crores vs. ₹311 crores last year; growth of 28.69%.
  • EBITDA Margin: 10.62% of net sales.
  • Profit After Tax (PAT): ₹262.45 crores vs. ₹203.51 crores; growth of 28.96%.
  • PAT Margin: 6.95% vs. 7.46% in Q2 FY26.

Segment-wise Q2 Performance

  • Domestic Wire & Cable: ₹3,184 crores (46% growth).
  • Export Sales: ₹493 crores (vs. ₹472 crores last year).
  • EHV Sales: ₹217 crores (vs. ₹172 crores).
  • EPC Sales: ₹46 crores (vs. ₹47 crores).
  • Stainless Steel Wire: ₹61 crores (vs. ₹53 crores).

Sales Channel Mix (Q2)

  • B2B (Domestic Institutional): 26%
  • B2C (Distribution Network): 59%
  • Exports: 13%
  • Domestic EPC & Stainless Steel Wire: 2%

H1 FY27 Financial Performance (Standalone)

  • Net Sales: ₹6,961 crores (31% growth YoY).
  • Wire and Cable Sales: 32% growth.
  • Operating Margin: 11.09%.
  • EBITDA Margin: 11.73% (vs. 11.46% in H1 FY26).
  • EBITDA Growth: 34%.
  • PAT: ₹536.59 crores (34.4% growth).
  • Domestic Wire & Cable Growth: 38%.
  • Export Sales: ₹834 crores (vs. ₹846 crores).
  • EHV Sales: ₹403 crores (vs. ₹298 crores).

Operational and Business Metrics

  • Active Dealers: 2,146 as of September 30, 2026.
  • Order Book (as of call date):
  • Wire and Cable: ₹4,927 crores
  • EPC: ₹258 crores
  • Export Orders: ₹991 crores (of which ~50% is from the USA)
  • Credit Ratings:
  • Long-term: AA+ (CARE, India Ratings, ICRA)
  • Short-term: A1+
  • Book Value per Share: ₹753 (vs. ₹697 on March 31, 2026).
  • Cash & Bank Balance: ₹698 crores (includes QIP balance of ₹169 crores).

Capital Expenditure (Capex)

  • H1 FY27 Capex Incurred: ₹402 crores.
  • Sanand Project: ₹333 crores.
  • Total Sanand Capex Incurred (till Sept 30, 2026): ₹1,876 crores.
  • Expected Additional Capex for FY27: ~₹200 crores.
  • Future Annual Capex Guidance: ~₹600 crores annually for the next 3-4 years.
  • Includes maintenance capex of ₹100-150 crores.

Capacity and Utilization

  • Total Metal Consuming Capacity: ~183,000 metric tons per annum (copper & aluminum).
  • H1 FY27 Capacity Utilization:
  • Cable Division: 77%
  • House Wire Division: 64%
  • Stainless Steel Wire: 91%
  • Communication Cable: 43%
  • Sanand Phase 2 Update: Commercial production of EHV and HT cables is expected to commence by the end of March 2027. The plant is currently billing ~₹200 crores per month and is targeted to reach ₹250-300 crores per month in Q3 FY27. Full peak utilization is expected by FY28-29.

Management Guidance and Commentary

  • FY27 Revenue Growth: Guidance upgraded to more than 25% growth.
  • FY27 EBITDA Margin: Guidance maintained at 11%.
  • Long-term Growth: Targeting a 20% CAGR for the next 3-4 years.
  • Demand Drivers: Strong demand is noted from data centers, power T&D, renewable energy (solar/wind), thermal power projects, EV infrastructure, railway electrification, metros, urban infrastructure, and new manufacturing projects globally.
  • Pricing Strategy: For institutional orders, prices are quoted based on prevailing market rates. For retail (B2C), prices are revised twice a month based on metal price movements. The company maintains a natural hedge with 3-4 months of institutional order book and 3-3.5 months of inventory.
  • Working Capital: Inventory increased in H1 primarily due to the ramp-up of the new Sanand plant (₹600-700 crores impact) and metal price valuation. Inventory days are expected to normalize by March 2027.
  • EPC Business: The company is winding down its EPC segment. It reported an EBIT loss of ~₹8 crores in Q2 and expects a total loss of ~₹20 crores for FY27.
  • Return Metrics: The management expects Return on Equity (ROE) to be 19-20% and Return on Capital Employed (ROCE) to be 23-24% from next year onwards as the Sanand project is completed.

Q&A Session Highlights

  • Margins: Management clarified that the QoQ margin decline was due to inventory valuation adjustments and that the annualized guidance of 11% EBITDA margin is intact. Margins are expected to improve to 11.5-12% as Sanand ramps up.
  • Volume vs. Value Growth: The management emphasized that they guide and measure growth in value terms due to capital constraints and working capital requirements, not volume.
  • Exports: The strong export order book of ₹991 crores is expected to be executed over the next 3-4 months. The U.S. market is particularly strong.
  • Competition: Management stated that new competition (like Ultravolt) has not triggered pricing wars and does not impact their growth guidance.