Company Overview

Paramount Communications Limited is a cable and wire manufacturer serving power, telecom, railways, renewables, defence, space, IT, construction and oil & gas sectors. The company has two manufacturing plants at Dharuhera (Haryana) and Khushkhera (Rajasthan) with FY26 metal throughput of 29,664 MTPA (+12% YoY).

Financial Performance FY26

Revenue & Profitability:

  • Revenue from operations grew 22.8% YoY to Rs 19,122 Mn (FY25: Rs 15,567 Mn)
  • Total Revenue (including Other Income) reached Rs 19,644 Mn (+25.1% YoY)
  • EBITDA (including Other Income) stood at Rs 1,175 Mn (6.0% margin)
  • PAT declined 30.5% to Rs 602 Mn (3.1% margin)
  • Diluted EPS was Rs 1.97
  • Net Worth increased to Rs 7,781 Mn from Rs 7,167 Mn in FY25
  • Debt/Equity ratio stood at 0.15 (FY25: 0.04)

Q4 FY26 Performance:

  • Revenue from operations: Rs 5,733 Mn
  • Other Income: Rs 89 Mn
  • Total Income: Rs 5,822 Mn
  • Operating Margin: 5.2% (Rs 299 Mn)
  • EBITDA (including OI): Rs 388 Mn (6.7% margin)
  • PAT: Rs 205 Mn
  • EPS: Rs 0.67

Non-Recurring Items:

  • Other Income includes Rs 278 Mn from keyman insurance maturity
  • Employee benefits expense includes Rs 25 Mn one-time impact from four new Labour Codes notified 21 November 2025

Segment Performance

Domestic Business (71% of revenue):

  • Total domestic revenue grew 26.8% to Rs 13,617 Mn
  • B2B Institutional sales grew 37.3% to Rs 10,013 Mn (power-cable led)
  • B2C Retail/Distribution grew 10.6% to Rs 1,786 Mn
  • B2G Government/PSU remained stable at Rs 1,818 Mn

Export Business (29% of revenue):

  • Export revenue grew 13.9% to Rs 5,504 Mn despite US tariff disruptions from August 2025
  • Company is largest LV cable (up to 600V) exporter from India to US in CY2025
  • US Supreme Court ruling invalidated IEEPA duties/tariffs between February and April 2026, restoring India's competitive position
  • 8 active US distributors (increased from 2 in FY22)

Operational Metrics

Order Book (as on 31 March 2026):

  • Domestic Orders: Rs 5,078 Mn (+55% YoY)
  • Export Orders: Rs 755 Mn (-77% YoY)
  • Total Orders in Hand: Rs 5,833 Mn (-10% YoY)
  • Power order book at Rs 4,663 Mn (+66% YoY) - record high

Manufacturing & Capacity:

  • Metal throughput: 29,664 MTPA (+12% YoY)
  • 3-year metal throughput CAGR ~45%
  • Working capital: 101 days (FY25: 99 days)

Capital Expenditure & Expansion

Narmadapuram Greenfield Project:

  • Third manufacturing facility in Madhya Pradesh
  • Approximately 31 acres allotted by MPIDC, fully in possession
  • Civil and site drawing preparation underway
  • Long delivery machinery & plant equipment orders placed
  • Total investment: ~Rs 300 Cr (Rs 3,000 Mn) over 2-3 years
  • Funding: Internal accruals, equity infusion, modest debt
  • Partial commissioning expected in Q1 FY28
  • Product focus: Extra-High-Voltage (EHV) cables up to 132 kV, specialised conductors, elastomeric e-beam cables
  • Targeted turnover: Rs 500 Cr in FY28 → Rs 1,200 Cr by FY29

Future Guidance

  • Target to achieve Rs 50,000 Mn sales milestone in next 5 years (by FY31)
  • Aim to double revenues every 3-4 years through capacity expansion, deeper domestic penetration and export diversification
  • Export margin trajectory expected to gradually improve back to pre-tariff levels and beyond
  • Entry into high-EHV (up to 132 kV) and specialised conductors via Narmadapuram facility

Cash Flow & Balance Sheet

Cash Flow Statement FY26:

  • Net Cash from Operating Activities: Negative (due to increase in trade receivables from high domestic dispatches in H2 Q4 FY26)
  • Net Cash from Investing Activities: Rs (482) Mn
  • Net Cash from Financing Activities: Rs 717 Mn
  • Net Change in Cash & Cash Equivalents: Rs (185) Mn
  • Cash at Beginning of Year: Rs 233 Mn
  • Cash at End of Year: Rs 48 Mn

Balance Sheet Highlights (31 March 2026):

  • Total Assets: Rs 11,287 Mn
  • Property, Plant & Equipment: Rs 2,277 Mn
  • Inventories: Rs 2,849 Mn
  • Trade Receivables: Rs 4,134 Mn
  • Cash & Bank Balances: Rs 331 Mn
  • Short-Term Borrowings: Rs 1,139 Mn
  • Trade Payables: Rs 1,966 Mn

Management Commentary

Management noted that Q4 FY26 marked a strong sequential recovery with revenue +24.5% QoQ, PAT +175% QoQ, and EBITDA margin improving to 6.7%. The US tariff regime has stabilized following the US Supreme Court ruling. Domestic momentum remained strong with B2B institutional sales growing 37.3%. Operating cash flow negative position is expected to normalize in early FY27.