💰 Financial Performance

Revenue Growth by Segment

Cables & Wires segment revenue grew 147.17% YoY to INR 202.13 Cr in FY25 (from INR 81.78 Cr in FY24), contributing 80.68% of total revenue. Aluminum Conductors grew 154.22% YoY to INR 48.39 Cr in FY25 (from INR 19.04 Cr in FY24). Total Operating Income grew 148.22% YoY in FY25 to INR 250.26 Cr.

Geographic Revenue Split

The company has a pan-India presence across 10+ states, with a strong historical base in Eastern India (West Bengal, Bihar, Jharkhand, Odisha). It is currently expanding into Northern India following new vendor approvals in Himachal Pradesh and Punjab in H1 FY26.

Profitability Margins

Gross profitability improved as EBITDA margins rose from 7.25% in FY24 to 13.62% in FY25 and 15.85% in H1 FY26. PAT margins followed a similar trend, increasing from 4.64% in FY24 to 8.84% in FY25 and reaching 9.82% in H1 FY26 due to improved scale and lower raw material consumption costs.

EBITDA Margin

EBITDA margin stood at 15.85% for H1 FY26, a significant improvement from 13.62% in FY25. Core profitability is driven by higher capacity utilization (approx. 80%) and a shift toward higher-margin cable products.

Capital Expenditure

Planned Capex includes INR 10.45 Cr for the acquisition of a 1.18 lakh sq. ft. facility in Dankuni and INR 5.72 Cr for new machinery for the Conductor Division. The company aims to double its current capacity by March 2026.

Credit Rating & Borrowing

Assigned IVR BBB-; Stable rating by Infomerics in June 2025 for bank facilities totaling INR 71.70 Cr. Average working capital utilization remained low at ~24% for the 12 months ended April 2025.

⚙️ Operational Drivers

Raw Materials

Primary raw materials include Aluminum ingots/rods, Copper rods/wires, Steel, and insulating compounds such as XLPE and PVC. Aluminum and Copper represent the largest portion of the cost structure.

Import Sources

Not specifically disclosed in available documents, though manufacturing is concentrated in West Bengal.

Key Suppliers

Not disclosed in available documents; however, the company maintains established relationships with suppliers built over a decade of operations.

Capacity Expansion

Current installed capacity is 28,000 Kms (Unit I: 6,000 Kms; Unit II: 22,000 Kms). Management plans to double this capacity to 56,000 Kms by March 2026 and targets a 4x-5x expansion within the next 2-3 years.

Raw Material Costs

Raw material costs are a major component of the TOI; EBITDA margins improved in FY25 specifically due to a decline in raw material consumption costs as a percentage of revenue.

Manufacturing Efficiency

Capacity utilization for FY25 was 79.17% for Unit I and 81.18% for Unit II. The company is enhancing automation to further improve product quality and efficiency.

📈 Strategic Growth

Expected Growth Rate

80%

Growth Strategy

Growth will be driven by doubling manufacturing capacity by March 2026, entering the EPC sector (targeting a INR 1,000 Cr order book by FY27), and launching new products like AL-59, MVCC, and HTLS conductors. The company is also leveraging its new Electrical Contractor License to bid for government turnkey projects.

Products & Services

LT XLPE/PVC Power and Control Cables, Aerial Bunched Cables (ABC), ACSR/AAAC/AAC Conductors, Single-Core Service Wires, and EPC infrastructure services for power distribution.

Brand Portfolio

JD Cables

New Products/Services

New product lines include AL-59, MVCC, HTLS, and HT Cables, which are expected to contribute to the target revenue of INR 350-360 Cr in FY26.

Market Expansion

Expanding geographic reach to Northern India (Punjab and Himachal Pradesh) and aggressively participating in direct government tenders for power infrastructure.

🌍 External Factors

Industry Trends

The Indian cable industry is growing due to urbanization, smart city projects, and renewable energy expansion. The industry is shifting toward sustainable and high-efficiency conductors like HTLS to handle increased power loads.

Competitive Landscape

Operates in a highly fragmented and competitive sector with major players like Polycab, KEC, and KSC, as well as regional players like Cabcon and Lumino.

Competitive Moat

Moat consists of 10+ years of promoter experience, established relationships with reputed clientele, and 'Approved Vendor' status across 10+ states, which acts as a significant entry barrier for new players.

Macro Economic Sensitivity

Highly sensitive to government infrastructure spending and power sector reforms (e.g., RDSS). Growth is tied to India's goal of reducing T&D losses.

Consumer Behavior

Rising demand for reliable power and faster data transmission is driving utilities to upgrade from traditional wires to Aerial Bunched Cables and specialized conductors.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by BIS standards for cable manufacturing and state-specific vendor approval processes. The company recently secured an Electrical Contractor License from the Government of West Bengal.

Environmental Compliance

The company is pursuing new-generation cable technologies aligned with sustainability and holds ISO 9001:2015 and BIS certifications.

⚠️ Risk Analysis

Key Uncertainties

Raw material price volatility and the competitive nature of the EPC segment (where margins are lower at 8-9%) pose risks to overall profitability.

Geographic Concentration Risk

Historically concentrated in West Bengal and Eastern India, though H1 FY26 shows active diversification into Northern India.

Third Party Dependencies

Dependent on government tender timelines and fund releases from State Electricity Boards.

Technology Obsolescence Risk

Risk of technological disruption is mitigated by investing in new machinery (INR 5.72 Cr) and expanding into high-tech conductor segments.

Credit & Counterparty Risk

Counterparty risk is mitigated by a clientele consisting of reputed companies and government-backed SEBs with sound credit profiles.