# 1. Financial Performance ## A. Key Figures * Net Sales: **₹2,590.32 Cr** Q1 FY26 (+25.44% YoY) * EBITDA: ₹297.62 Cr Q1 FY26 (+28% YoY) · Margin: 11.49% (vs. 11.25%) * **PAT:** **₹195.75 Cr** Q1 FY26 (+30.28% YoY) · **Margin: 7.56%** (vs. 7.28%) * **Book Value per Share:** **₹626** (30-Jun) vs. ₹5 (31-Mar) * **Net Cash Position:** **₹1,048 Cr** (30-Jun), including ₹1,106 Cr from QIP * **Total Borrowings:** **₹203 Cr** (30-Jun), primarily for channel finance * **Acceptance Creditors:** **₹448 Cr** (30-Jun) vs. ₹246 Cr (31-Mar) ## B. Revenue Growth * **Robust Volume Expansion:** Strong double-digit sales growth underpinned by solid demand and operational scaling, with volume growth estimated in the **28% to 30%** range. ## C. Profit Margins * **Margin Surge Driven by Operational Leverage:** Significant improvement in EBITDA and PAT margins reflects operating efficiency and favorable base comparison, despite inclusion of **treasury and hedging gains** in reported figures. * **Sustainable Margin Guidance:** Management reaffirmed target of **~11% EBITDA margin** as standard metric, clarifying it is a blended figure inclusive of non-core operational income. * **Cost Stability Supports Pricing:** Stable raw material costs (copper, aluminum) enabled pricing consistency, while logistic savings expected to contribute only **modestly** to future margins. ## D. Balance Sheet & Cash Flow * **Strong Liquidity Profile:** Balance sheet significantly strengthened post-QIP, with net cash position exceeding ₹1,000 Cr, enabling strategic flexibility. * **Working Capital Dynamics:** Rise in acceptance creditors indicates expanded trade financing, aligned with growing sales and distribution activity. --- # 2. Order Book & Demand ## A. Key Figures * **Order Book:** **₹3,921 Cr** total pending orders · **₹3,381 Cr** from Wire and Cable segment * **EHV Cable Revenue Guidance:** **₹550–600 Cr** expected full-year revenue ## B. Order Book Composition & Execution * **Robust Backlog:** Large and diversified order book with strong exposure to domestic cables, EPC, and export segments, supporting near-term revenue visibility. * **Execution Timeline:** Orders typically fulfilled in **3–4 months**, extending to **5 months** for institutional (domestic/export) projects. ## C. Institutional Demand Drivers * **Energy-Led Growth:** Domestic institutional demand primarily fueled by power T&D, solar EPC, and BESS infrastructure investments. * **Expanding End Markets:** Rising demand from new manufacturing facilities, housing wires, and highway projects underpins broader structural momentum. --- # 3. Capacity & Production ## A. Key Figures * **QIP Proceeds Raised:** **₹2,000 Cr** (28 Nov 2024) · **₹913 Cr** utilized by 30 Jun 2025 * **Capex (Current FY):** **₹410 Cr** total · **₹296 Cr** for Sanand, **₹95 Cr** for land (Salarpur & Sanand) * **Sanand Total Capex:** **₹1,900–2,000 Cr** estimated · **₹880 Cr** spent by 30 Jun 2025 * **Sanand Capacity:** **₹6,000 Cr** top-line capacity · **₹1,200 Cr** EHV, **₹4,800 Cr** LV/MV * **EHV Market Size:** **₹3,000 Cr** current · projected **₹6,000 Cr** in 3 years ## B. Sanand Ramp-Up * **Execution on Track:** Sanand Phase 1 (LT/HT cables) on schedule for **September 2025** commercial launch, with EHV production to follow by **end of Q1 next fiscal**. * **Capex Phasing:** **₹600–700 Cr** expected in next 9 months, **₹300–400 Cr** in first half of next FY; remaining QIP funds fully committed to capex. * **Strategic Advantages:** Proximity to port (~350 km) to lower logistics costs vs. North Indian plants (~1,400 km); electron beam capability added for solar wire demand. * **Financial Impact Timing:** Commercial contribution begins **Q3 FY27**, with full depreciation starting **FY27**; no near-term earnings impact. * **Long-Term View:** 3-year ramp-up to full utilization; future expansion sites in Rajasthan and Sanand on hold until current project completes. ## C. Utilization Rates * **Healthy Utilization:** Cable plants at **74–75%** capacity across Silvassa and Pathredi, supported by recent brownfield investments. * **Flexible Deployment:** Focus on optimal utilization across export, retail, and institutional channels; idle capacity mitigated via HT cable fallback for EHV lines. ## D. EHV Capacity * **Growth in Focus:** EHV market poised to double in 3 years; new capacity aligned with strong tender pipeline and **3–5 year strategic outlook** for domestic and overseas growth. * **Technology Flexibility:** Sanand EHV facility designed for both **HVAC and HVDC** cables with shared infrastructure, enhancing scalability and efficiency. --- # 4. Product & Segment Mix ## A. Key Figures * **Institutional Cable Sales:** ₹711 Cr (+24%) · **EHV Cable Sales:** ₹116 Cr (+47%) * **B2C Sales:** ₹1,326 Cr (+22%), **51% of total sales** * **Wires & Cables Segment Growth:** ~32% YoY * **Stainless Steel Wire Sales:** ₹51 Cr (-4%) * **EPC Sales (ex-cable):** ₹61 Cr (-53%) ## B. Wires & Cables * **Institutional Momentum:** Strong double-digit growth in institutional and EHV cables, with segment’s share rising to **45% of total sales** amid robust infrastructure demand. * **B2C Resilience:** B2C remains the largest contributor, growing at a healthy pace despite slight mix shift, maintaining **~51% sales share**. * **Segment Profitability Outlook:** Domestic-export margin gap at **5%**, expected to widen post Sanand plant ramp-up, enhancing export economics. * **Strategic Focus:** Firm commitment to remain **pure-play in wires and cables**, with no plans to vertically integrate into solar components. ## C. Housing & Solar Wires * **Housing Wire Scale-Up:** High growth in housing wires driven by low base and distribution expansion, now representing **~30% of total business**; targeted **22–25% annual growth** ahead. * **Solar Specialty Cables:** Experiencing very high growth momentum, though not quantified, signaling emerging strategic opportunity. * **Market Outperformance:** Rapid share gain in housing wires despite late entry, now a key competitive pillar. ## D. EPC Segment * **EPC Contraction:** Sharp decline in non-cable EPC sales due to lapping of prior-year Gambia project, confirming strategic de-emphasis on project-based revenue. --- # 5. Export & Geography Mix ## A. Key Figures * **Export Sales:** **₹374 Cr** (+61%) · **Wires & Cables Exports:** **₹323 Cr** (+122% YoY) * **Active Dealers:** **2,094** as of June 30 * **Export Contribution Target:** **17%–20%** of total sales in 2–3 years ## B. Regional Contribution * **Explosive Export Growth:** Wires and cables exports surged on strong demand from new geographies, particularly the **USA and Europe**, despite a low prior base. * **Diversified Global Footprint:** Strong presence in **Middle East, Australia, Africa, and Europe**, with top export destinations concentrated in these regions; minimal reliance on any single market. * **Balanced Sales Strategy:** Management prioritizing full capacity utilization through a mix of export, retail, and institutional channels, with **comparable margins across domestic and export markets** (5% difference). * **Project-Led Export Model:** Business is predominantly short-term and project-based, with **4–5 month order cycles**, supported by regular quoting activity from established EPC and utility clients. ## C. New Markets * **Strategic Geographic Expansion:** Recent entry into **US and Europe** driving high-growth momentum; initial success reflects execution of broader internationalization strategy. ## D. Distribution Network * **Dealer Network Scale:** Robust distribution infrastructure with **over 2,000 active dealers**, focused on strengthening coverage in underpenetrated **Southern and Eastern India**. * **Channel Efficiency:** **90% of export sales** are direct to EPCs/utilities; distributor use limited to **10%–15%**, primarily in the US, while agents facilitate access elsewhere. * **Ongoing Network Optimization:** Annual addition of **5%–7% new dealers** with active pruning of underperformers; **70% of dealers** covered under channel financing, with integration taking **4–8 months**. --- # 6. Risks & Market Challenges ## A. Tariff & Geopolitical Exposure * **Limited US Exposure:** Exports to the US are minimal and currently constrained by tariff uncertainties, with no material reliance on the market at present. * **Pending Tariff Risks:** Proposed US tariffs on India via third countries (Mexico, China, South Korea) remain unimplemented—still on paper with no official notification. * **Demand Pause, Not Erosion:** US project delays due to policy uncertainty are temporary; **strong underlying demand** expected to rebound within **2–3 months**. * **Resilient Revenue Buffer:** Potential export shortfall of **₹100–200 Cr** would be immaterial, offset by diversified markets and domestic absorption capacity. ## B. Competitive Positioning * **Sustained Margins Amid Rivalry:** Maintained **5–15% EBITDA margins** and **17–20% annual growth** despite persistent entry of small domestic players. * **Cost Advantage vs. Global Peers:** Competitive production costs neutralize pricing threats; focus remains on **certifications, market development**, and customer acquisition. * **Proven Resilience in Australia:** Over **11 years of successful exports** despite entrenched Chinese competition due to proximity. ## C. HVDC Market Dynamics * **Emerging Domestic Opportunity:** HVDC cables represent a strategic growth avenue in India’s transmission space, though adoption is nascent. * **Import Dependence Today:** Most Indian HVDC projects currently rely on imported cables, signaling a high barrier but significant future localization potential. --- # 7. Guidance & Outlook ## A. Key Figures * **Revenue Growth Guidance:** **18%–19%** current year · **20%+** from next year onwards * **EBITDA Margin Guidance:** **~11%** for current year · **5%–11%** historical range * **Capital Expenditure:** **₹600–700 Cr** annually to support growth and capacity expansion ## B. Revenue Targets * **Capacity-Led Growth:** Full-year revenue guidance reaffirmed, with Sanand facility ramping up from September and contributing meaningfully in H2. * **Sustained Momentum:** 20%+ growth expected from next fiscal as Sanand plant reaches full operation, enabling scalable output. * **Seasonal Dynamics:** Strong quarterly cable growth not extrapolated annually due to high H2 seasonality, particularly in Q3 and Q4. ## C. Margin Forecast * **Margin Trajectory:** EBITDA margin targeted near 11% this year, with structural improvement expected in **FY '27–'28** as Sanand utilization reaches **50%–60%+**, enhancing cost absorption. * **Export Leverage:** Margin expansion potential tied to export mix scaling to **targeted 18%**, which could lift margins to **5% or higher** over time. ## D. Growth Drivers * **Multi-Segment Demand:** FY26 growth to be driven by strong activity in solar, thermal, transmission, data centers, EV charging, and rail/metro infrastructure across public and private sectors. * **Outperformance Bias:** Historical track record suggests performance may exceed current guidance, supported by robust order book and execution capability. * **Housing Wire Strength:** Segment poised for **24%–25% growth** over next 2–3 years, above group average, before gradual normalization. * **HVDC Delay:** No near-term revenue visibility from HVDC cables due to **~2-year** prequalification and testing cycle.