Financial Performance Overview

Q4 FY26 Results

  • Revenue: INR 573 crores, up 13.6% YoY and 24.5% QoQ
  • EBITDA (including other income): INR 38.8 crores
  • EBITDA Margin: 6.7%, improved from 4.3% in Q3 FY26 (250 basis points improvement)
  • PAT: INR 20.5 crore, up 9.5% YoY and 175% QoQ

Full Year FY26 Results

  • Revenue from operations: INR 1,912 crores, up 23% YoY (from INR 1,557 crores in FY25)
  • Total revenue (including other income): INR 1,964 crores
  • EBITDA (including other income): INR 117.5 crores
  • EBITDA Margin: 6%
  • PAT: INR 60.2 crores
  • PAT Margin: 3.1%
  • EPS: INR 1.97

Historical Growth Trends (FY22-FY26)

  • Total revenue grown from INR 585 crores to INR 1,964 crores (4-year CAGR: 35.4%)
  • PAT grown from INR 8.2 crore to INR 60.2 crore (4-year CAGR: 64.6%)
  • Net worth nearly quadrupled from INR 202 crores to INR 778 crores

Non-Recurring Items for FY26

  • Other income includes INR 27.8 crores from maturity of keyman insurance policies
  • Employee benefit expense includes one-time charge of INR 2.4-2.5 crores from implementation of four new labor codes notified on November 21, 2025

Segment Performance

Domestic Business

  • Revenue: INR 1,361 crores, grew 27% YoY
  • Domestic share of total revenue: 71% (up from 69% in FY25)
  • B2B industrial sales: INR 1,001 crores, grew 37.3% led by power cables
  • B2C retail and distribution: INR 179 crores, grew 10.6%
  • B2G government and PSU business: INR 182 crores (stable)

Export Business

  • Revenue: INR 550 crores, grew 13.9% despite tariff disruptions
  • Maintained eight active distributors in US (up from two in FY22)
  • Continued zero-rejection record for six years of US exports

Operational Metrics

  • Metal throughput for FY26: 29,664 metric tons, up 12% YoY
  • 3-year CAGR for metal consumption: approximately 45%
  • Existing plants at Dharuhera (Haryana) and Kushkhera (Rajasthan) running at optimal utilization
  • Order book as of March 31, 2026: INR 583 crores
  • Domestic orders: INR 508 crores (87% of order book)
  • Export orders: INR 76 crores
  • Power cable orders: INR 466 crores, up 66% YoY

US Tariff Impact and Recovery

  • 10% reciprocal tariff imposed by US on April 2, 2025
  • Increased to 25% for Indian exporters in early August 2025
  • Further increased to 50% (including 25% Russian oil tariff) in late August 2025
  • US Supreme Court rulings between February-April 2026 invalidated tariffs imposed under IEEPA
  • Q4 FY26 showed improvement, recovery expected to strengthen in current financial year
  • Company maintained US market presence despite sub-economic margins

Narmadapuram Greenfield Project

  • Location: Narmadapuram, Madhya Pradesh
  • Land: 31 acres allotted by Madhya Pradesh Industrial Development Corporation
  • Investment: INR 300 crores by FY28
  • Timeline: Partial operations commencement in Q1 FY28, ramp up through FY28
  • Revenue targets: INR 500 crores in FY28, scaling to INR 1,200 crores in FY29
  • Product focus: Extra high voltage cables up to 132 kV, specialized conductors and cables for transmission sector, elastomeric EBeam cables, EPR cables, lead-sheathed rubber cables
  • Expected margins: 9-10%
  • Payback period: 3-4 years at operating level
  • Funding: Partly by equity raise (INR 122 crores total, with INR 30 crores from promoters, INR 92 crores from investors), mostly by internal accruals and modest debt

Capacity Constraints and Expansion Strategy

  • Existing plants have reached physical space constraint
  • Annual capex of INR 50-55 crores over past three years in existing plants
  • FY26 capex: INR 50 crores in existing plants
  • Working capital cycle: 101 days in FY26 (vs 99 days in FY25)
  • Company follows policy of not accepting firm-price orders with delivery beyond 3-4 months

Growth Drivers and Market Outlook

Structural Demand Drivers

1. Power infrastructure: INR 3.35 lakh crore transmission and distribution spending between FY26-FY30

2. Renewable energy: 500 GW target by FY30 driving 210-220 GW solar addition

3. Data centers: Capacity growth from 1.7 GW to 8 GW by 2030, AI centers require 70% higher cable density

4. Exports: US market approximately USD 32 billion, growing at 6% CAGR, with USD 1 trillion grid capex planned

5. Real estate and infrastructure: INR 18-19 lakh crore construction capex planned between FY25-FY29

6. Railways and metro: INR 3 lakh crore Railways FY27 budget, 100% electrification on track

Management Guidance

  • FY27 revenue growth expectation: 15-20% (assuming current metal prices)
  • Volume growth expectation: Minimum 10%
  • Target to return to pre-tariff margin levels by end of FY27
  • Long-term vision: INR 5,000 crores revenue in next 5 years (by FY31)
  • Double-digit margins targeted within 3-4 years

Working Capital and Receivables

  • Trade receivables increased due to unusually weighted dispatch in Q4 FY26
  • More than 65% of Q4 sales dispatched in second half of Q4
  • More than three-quarters of receivables already recovered by May 15, 2026
  • Working capital position expected to normalize in current quarter

Export Market Strategy

  • US remains priority market (largest cables and wires market globally)
  • Planning to introduce 1-2 new products in US market by next quarter
  • Restarting focus on other geographies: Middle East, Europe, Australia, African markets
  • Middle East identified as focus area given reconstruction opportunities

Capital Structure

  • Current net debt: INR 110 crores (only working capital limits)
  • Debt-equity ratio: Very low, almost negligible
  • Recent equity raise: INR 122 crores total (INR 30 crores promoters, INR 92 crores investors)