Financial Performance Highlights

Consolidated Results for Q1 FY27 (ended June 30, 2026):

  • Revenue growth: 39% year-on-year
  • EBITDA growth: 32% year-on-year
  • EBITDA margin: 13.8% (improvement of approximately 70 basis points sequentially)
  • Profit After Tax: ₹7,967 million (highest ever quarterly PAT)
  • PAT growth: 33% year-on-year
  • PAT margin: 9.7%
  • Finance costs: ₹800 million
  • Other income: ₹1,049 million

Balance Sheet and Capital Allocation:

  • Net cash position: ₹39.9 billion
  • Working capital cycle: 15 days in Q1 FY27 (temporarily improved due to letter of credit usage)
  • Expected long-term working capital cycle: 45-50 days
  • Capital expenditure: ₹3.2 billion during the quarter

Business Segment Performance

Wires & Cables Business:

  • Revenue growth: 39% year-on-year
  • Domestic business growth: 43% year-on-year
  • Volume growth: Low to mid-single digits year-on-year (on strong base of 26% growth in Q1 FY26)
  • Wires grew faster than cables during the quarter
  • Channel sales outperformed institutional sales
  • Regional performance: West (strongest), followed by North, South, and East
  • International business: Declined year-on-year due to geopolitical developments
  • EBIT margins: 13.3%
  • Medium to long-term margin guidance maintained at 11-13%

FMEG Business:

  • Revenue growth: 71% year-on-year
  • Tenth consecutive quarter of outperforming industry growth rates
  • Solar business (largest category): More than twofold growth year-on-year
  • All other categories (fans, lighting, switches, switchgears, conduit pipes, fittings) delivered healthy growth
  • EBIT margins: 8%
  • Target EBITDA margins of 8-10% by FY2030 under Project Spring
  • Premium mix increased significantly: 25% overall, 33% in fans, 38% in lighting and luminaries

EPC Business:

  • Revenue: ₹3,077 million (11% year-on-year decline)
  • Profitability: ₹338 million
  • Margin: 11%
  • Expected sustainable operating margins: High single-digit range

Strategic Updates and Market Commentary

Global Macroeconomic Context:

  • Geopolitical developments affecting energy markets and global trade routes, particularly around Strait of Hormuz
  • Oil prices moderated from April peaks but remain volatile
  • IMF projects global growth approximately at 3% for 2026
  • RBI repo rate held at 5.25% with neutral stance

Indian Economic Outlook:

  • India remains one of the strongest performing major economies
  • Government capex: ₹2.51 lakh crores in first 2 months of FY27 vs ₹2.21 lakh crores last year (14% growth)
  • Robust domestic demand, public investment, healthy credit expansion, and increasing private sector capex

Growth Drivers and Opportunities:

  • Data center opportunity: Estimated ₹20,000-25,000 crores market over 6-8 years
  • 1 megawatt translates to ₹3.5 crores worth of cables (50-60% conventional, balance optical fibre)
  • Transmission & distribution: Average capacity addition expected to increase from 15,000 circuit km (FY20-FY25) to 20,000-21,000 circuit km (FY26-FY30)
  • Government infrastructure spending, manufacturing base broadening, real estate sector strength

Project Updates

Bharat Net Project:

  • Overall order size: ₹8,000 crores
  • Execution portion: ₹4,500 crores over 3 years
  • Fibre already secured for execution period, not exposed to current high fibre prices
  • Expected revenue recognition: ₹800-1,000 crores from Bharat Net this year

RDSS Project:

  • Order book: ₹3,250 crores (started execution)
  • Expected revenue: ₹800+ crores this year
  • Combined Bharat Net and RDSS order book: ₹10,900 crores

Export Business Update

  • Middle East impacted in March, certain geographies continue to be affected
  • Healthy order book from US, Europe, and Latin America
  • Q1 export mix: Middle East (20-24%), North America (45-50%), Europe (18-20%)
  • Added 10 new geographies in global footprint last year
  • Current footprint: 94 countries
  • Export target: North of 10% of overall top line by 2030

Raw Material and Pricing

  • Copper and aluminum prices plummeted in June
  • Aluminum down 18-20% from June 1 to June 30
  • Copper declined from ~₹14,000 to ₹13,100-13,200
  • Price correction of 3-4% taken in first fortnight of July
  • Cost-plus model for pricing

Q&A Session Highlights

Volume Growth:

  • Full year FY26 volume growth: 18%
  • Guidance: 1.5x market growth (mix of volume and value)

Market Share:

  • Gained 3-4% market share in previous periods
  • Wires outpaced cables growth in Q1 FY27

Capacity Expansion:

  • Transformer companies have robust capacity addition plans
  • Order book to revenue ratio at 2.5x for transformer companies

Product Categories:

  • FMEG category descending order: Solar, fans, pipes and conduits, lights, switchgears, switches
  • Solar contribution: Less than 50% of FMEG business

Management Commentary

  • Confident in medium-term outlook for Indian economy
  • Focus on execution excellence, strengthening competitive positioning
  • Investments in innovation, talent, and capabilities
  • Priority on sustaining growth momentum and profitable growth