Systematic Industries FY26 Revenue Up 24%

Revenue: ₹5,563 million, representing a 24% year-on-year (YoY) growth.
EBITDA: ₹405 million.
Profit After Tax (PAT): ₹205 million.
Growth Track Record: From FY23 to FY26, the company achieved a Compound Annual Growth Rate (CAGR) of 20% in revenue, 40% in EBITDA, and 49% in PAT.
Debt Status: The company achieved net debt-free status as of March 31, 2026.

The company is undergoing a strategic shift from legacy steel wire manufacturing towards high-growth "New Age" segments:

New Age Portfolio: Includes Optical Ground Wire (OPGW), Optical Fiber Cables (OFC), and Aluminum Clad Steel (ACS) wire.
Vertical Integration: The company is the only integrated OPGW manufacturer in India controlling the entire value chain from steel processing to cable manufacturing.
FY26 Revenue Mix: Approximately 97% from legacy steel wire. The New Age segment is expected to contribute significantly to the bottom line in FY27 and FY28.
Margins: Legacy steel wire margins are lower, whereas New Age businesses are expected to deliver double-digit profitability.
Data Center Opportunity: Rising demand for OFC is driven by data center proliferation and the government's National Broadband Mission.

First EPC Contract: Secured from Power Grid of India for the end-to-end execution (supply and installation) of OPGW for the Agra-Kumher section.
Railway Order: Secured a landmark order worth over ₹100 million from Indian Railways for 24/48-fibre armoured OFC.
Tendering Pipeline: The company is eligible to participate in upcoming OPGW tenders estimated at ₹10,000 million (₹1,000 crore) in the coming year.

Manufacturing Units: Operates four manufacturing units with a combined capacity exceeding 1 lakh metric tons.
Capacity Utilization: Legacy plants are operating at 75% utilization. New Age business utilization will scale through FY27.
Value-Added Products: High-end and import-substitute products constitute 20% of steel wire volume, with a target to expand to 30-35%.
Exports: Exports to over 30 countries contribute 8-10% of total revenue, with a strategic target to reach 15%.

Committed to remaining a net debt-free company to maintain financial flexibility.
EPC services will be strictly limited to end-to-end OPGW projects where the company's manufactured product constitutes 60-70% of the project cost. The company will not transition into a general EPC company.
Strategic thrust will remain on high-end, premium segments of steel wire to ensure superior realizations.

Project Commissioning: Complete end-to-end commissioning of the OPGW EPC project for Power Grid (Agra to Kumher) by December 2026.
Order Fulfillment: Execute the RDSO-approved fiber cable orders for Indian Railways within specified non-public timelines.
Tendering Participation: Actively bid for the ₹10,000 million OPGW tender pipeline in FY27.
Capacity Ramp-up: Operationalize and scale New Age assets to reflect revenue contributions by March 2027/2028.

Capex: Specific figures for FY27 Capital Expenditures have not been earmarked, though management maintains a positive outlook on capacity expansions.
Supply Chain: The industry faces ongoing pressure regarding the supply of preforms for optical fiber; the company has successfully secured necessary materials to date.
Raw Material Volatility: Sudden spikes in raw material prices, driven by dollar appreciation and global supply chain disruptions, remain a persistent operational risk.
Geopolitics: Previous production schedules were hampered by a force majeure event concerning gas supply caused by international conflict. Broader geopolitical risks remain a factor.
Policy Impacts: Unforeseen changes in government policy regarding gratuity and leave provisions necessitated a one-time provision in the FY26 balance sheet, which temporarily impacted short-term profit growth.