Financial Performance Highlights

H1 FY27 Results (Unaudited)

  • Revenue from operations: ₹202 crore (190% growth YoY from ₹69 crore in H1 FY26)
  • Operating profit: ₹23.78 crore (160% growth YoY)
  • Profit after tax: ₹13.15 crore (191% growth YoY from ₹4.53 crore)
  • EBITDA margin: 11.77% (compared to 13.13% in H1 FY26)
  • Cash flow from operations turned positive during the period

Q2 FY27 Performance

  • Revenue: ₹106 crore
  • Product mix shift evident with HT cables and MVCC contributing approximately 30% of revenue
  • Winding wires contributed 33% of revenue
  • LT cables contributed 31% of revenue

Operational Metrics

Capacity Expansion

  • Cable manufacturing capacity increased from 7,500 km to 11,000 km
  • Planned expansion to 16,000 km with commercial production targeted from March 2027
  • Winding wire capacity increased from 3,307 tons to 4,200 tons
  • Planned expansion to 5,500 tons (66% overall increase)
  • CCV line installation completed, expected to become operational within days

Order Book Status (as of September 30, 2026)

  • Total order book: ₹147 crore
  • HT cables and MVCC: ₹54 crore (36.7% of order book)
  • Winding wires: ₹69 crore (47% of order book)
  • LT cables: ₹24 crore (16.3% of order book)
  • Active pipeline: ₹200 crore
  • Combined visibility: ₹347 crore
  • Q2 order execution: ₹107 crore with ₹111 crore of new orders won

Volume Metrics (Q2 FY27)

  • HT cables and MVCC sales: 518 km
  • LT cables and conductors: 1,498 km
  • Winding wires: 937 tons (937,238 kg)

Realization Metrics

  • H1 FY27 EBITDA per km: HT cables and MVCC - ₹75,808; LT cables - ₹22,252
  • H1 FY27 EBITDA per kg: Winding wires - ₹45
  • Q2 FY27 EBITDA margins by product: HT and MVCC - 13.13%; Winding wires - 11.82%; LT cables - 11%

Strategic Developments

Product Mix Transformation

  • Significant shift from wire and cable supplier to specification-driven power cable company
  • HT and MVCC sales increased from ₹0.52 crore in H1 FY26 to ₹39 crore in H1 FY27
  • Target product mix for FY27: HT and MVCC 40-50%, Winding wires 40%, LT cables 10-20%
  • Future target: LT cables to reduce to 5-10% with HT cables and winding wires each around 45%

Market Segmentation

  • Government vs private sector business split: Approximately 50% each in H1 FY27
  • Expanding presence in railway sector (supplying to RVNL) and targeting defense sector
  • Registered in Uttarakhand for products up to 33 kV MVCC

Land Acquisition and Future Expansion

  • Advanced stage of taking possession of newly acquired land
  • Funding mix: Own earnings and bank loans
  • Plan to shift existing factories to new location between FY28 and FY29
  • New land cost approximately 25% of current UPSIDC industrial area rates
  • Future expansion planned to 5x current capacity levels

Working Capital and Financial Position

Borrowings and Collateral (as of September 30, 2026)

  • Total borrowings: ₹122 crore (short-term: ₹115 crore; long-term: ₹7 crore)
  • Cash and cash equivalents: ₹61 crore
  • Net debt: Approximately ₹60 crore
  • Fixed deposits of ₹48 crore (including ₹5.62 crore pledged mutual funds) provided as collateral against bank CC limits

Receivables Management

  • Receivables as of September 30, 2026: ₹95 crore
  • ₹25 crore relates to sales in last week of September (not yet due)
  • ₹44 crore received in October 2026
  • Only 5% (₹4 crore) were receivables older than 180 days
  • ₹3.5 crore of aged receivables already collected in October
  • Collections identified as top management priority

TReDS Facility

  • Interest rates: 9-12%
  • Classified as non-cash transaction in operating cash flow
  • Repayments shown under financing activities
  • Expected to continue as normal financing facility

Management Guidance and Outlook

Revenue Growth Targets

  • Year-on-year growth target of 100% for FY28
  • H2 traditionally stronger period for cable industry
  • Expect significant portion of ₹347 crore visibility to be executed in H2 FY27

Margin Outlook

  • Expect margin improvement due to better product mix
  • No expectation of margin decline
  • HT cables typically yield 12-14% EBITDA margins
  • Winding wires typically yield 10-13% EBITDA margins
  • LT cables typically yield 9-11.5% EBITDA margins

Capacity Utilization

  • Currently operating at approximately 80% capacity
  • Expansion plans aligned with growth targets
  • CCV line enables participation in larger HT cable projects

Q&A Highlights

Margin Clarification

  • EBITDA margin decline from 13.7% to 11.5% due to abnormal metal price gains in H1 FY26
  • Full-year FY26 margin was 11.91%
  • Current margins considered sustainable industry levels

Working Capital Strategy

  • No current working capital stress
  • Sufficient facilities arranged for current year growth
  • Planning additional facilities for FY28 growth
  • Land acquisition to help release fixed deposits used as collateral

Product Expansion Plans

  • Focus on HT cables, MVCC, and winding wires only
  • Planning to expand beyond 33 kV capacity
  • BIS certification for higher voltages expected in 2-3 months
  • Considering CTC winding wire production

Execution Timeline

  • Government contracts: Maximum 6-month execution period
  • EPC contracts: Faster payment terms (advances or letters of credit)
  • 18-month warranty period on government tenders