Financial Performance Highlights

Q2 FY27 Consolidated Results:

  • Revenue from operations: ₹3,284 crore (vs. ₹2,164 crore in Q2 FY26), growth of 52% YoY
  • Operating EBITDA: ₹286 crore (vs. ₹176 crore), growth of 63% YoY
  • EBITDA margin: 8.7% (vs. 8.1%), expansion of 60 bps
  • Profit before tax: ₹242 crore, up 56% YoY
  • Profit after tax: ₹181 crore (vs. ₹116 crore), growth of 55% YoY
  • PAT margin: 5.5% (vs. 5.4%)

H1 FY27 Consolidated Results:

  • Revenue: ₹6,452 crore (vs. ₹4,222 crore in H1 FY26), growth of 53% YoY
  • Operating EBITDA: ₹571 crore (vs. ₹319 crore), growth of 79% YoY
  • EBITDA margin: 8.9% (vs. 7.6%), expansion of 130 bps
  • Profit after tax: ₹386 crore (vs. ₹206 crore), growth of 87% YoY
  • PAT margin: 6.0% (vs. 4.9%)

Segment Performance

Wires & Cables Segment:

  • Q2 revenue: ₹3,010 crore (vs. ₹1,971 crore), growth of 53% YoY
  • Q2 segment profit: ₹282 crore (vs. ₹180 crore), growth of 57% YoY
  • Q2 segment margin: 9.4% (vs. 9.2%)
  • H1 revenue: ₹5,890 crore, growth of 55% YoY
  • H1 segment profit: ₹568 crore, growth of 78% YoY
  • H1 segment margin: 9.6% (vs. 8.4%)
  • Overall volume growth: High single-digit in Q2, low teens for H1
  • Wires outpaced cables with double-digit growth vs. single-digit for cables
  • Export growth was faster than domestic in Q2

FMEG Segment:

  • Q2 revenue: ₹274 crore (vs. ₹193 crore), growth of 42% YoY
  • H1 revenue: ₹562 crore, growth of 35% YoY
  • Q2 segment loss: ₹12 crore (similar to corresponding quarter)
  • Q2 loss margin: 4.5% (vs. 6.1%)
  • H1 segment loss: ₹12 crore (vs. ₹19 crore)
  • H1 loss margin: 2.2% (vs. 4.5%)
  • Growth was broad-based, led by appliances and new products

Corporate Actions and Developments

  • Board declared an interim dividend of ₹6.50 per equity share
  • Board approved investment of ₹200 crore towards land acquisition in Rajasthan to support future expansion plans
  • On 25 September 2026, entered into business transfer agreement with UM Cables Limited (wholly owned subsidiary of Usha Martin Limited) for acquisition of optical fibre cable business undertaking
  • Agreed consideration: Approximately ₹77 crore, subject to post-closing adjustments
  • Transaction subject to fulfilment of conditions precedent and not recognized in September 2026 results

Operational Metrics and Guidance

  • Net working capital cycle improved to 46 days as of September 2026 (from 49 days in March and 50 days in June)
  • Wire & cable segment volume growth guidance for FY27: Approximately 14-15% (revised from 16-18%)
  • Wire & cable segment EBIT margin guidance: 9.5% for FY27 and 10.5% for FY28
  • FMEG segment target: Achieve breakeven at segment profit level in FY27
  • Export contribution: Currently in 30-35% range, expected to remain in this range for remaining half

Capital Expenditure

  • FY27 planned capex: ₹550-600 crore (excluding Rajasthan land acquisition and UM Cables payout)
  • H1 FY27 capex spent: ₹281 crore (excluding UM Cables amount)
  • Rajasthan land acquisition: ₹200 crore (separate from main capex plan, partial outflow in FY27, remainder in H1 FY28)
  • UM Cables acquisition: ₹77 crore (separate from main capex plan)
  • FY28 capex budget: Approximately ₹300 crore

Financial Position

  • Debt leverage ratio: Approximately 0.55%
  • Trade acceptances: Approximately ₹1,290 crore
  • Working capital management focused on efficient use of LC facilities
  • Receivables days improved to 32 days from 34 days

Management Commentary

  • Industry fundamentals remain strong with opportunities in infrastructure development, power, electrification, housing, and industrial investments
  • Focus on sustaining growth momentum in wires & cables, strengthening international presence, and improving FMEG profitability
  • Committed to margin improvement, operational efficiencies, and stronger cash generation
  • Competition intensity noted but confidence in growth plans and market positioning

Q&A Highlights

  • Volume growth: High single-digit overall in Q2, wires double-digit, cables single-digit
  • Export growth driven by enhanced cable capacities and presence across continents, particularly Europe and Middle East
  • FMEG Q2 loss attributed to seasonal factors (low fan season) despite growth in lights and appliances
  • Working capital creditor days increased due to efficient capital control and higher commodity prices
  • UM Cables acquisition seen as opportunity to improve capacity utilization and grow optical fibre business
  • No significant fundamental changes in industry growth outlook despite minor guidance revision

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