BIRLACABLE - Birla Cable
📢 Recent Corporate Announcements
CARE Ratings has downgraded Birla Cable's credit-enhanced bank facilities totaling ₹296 crore following a downgrade of its guarantor, Vindhya Telelinks Limited (VTL). The downgrade is attributed to VTL's moderate operations, execution delays in its EPC segment, and a stretched operating cycle with debtors rising to ₹2,191.85 crore. However, BCL's standalone rating of ₹55 crore is on 'Positive Watch' due to its proposed merger into VTL, which is expected to streamline operations over the next 10-12 months. BCL's own performance showed revenue growth to ₹557 crore in 9MFY26, though margins slightly compressed to 4.66%.
- Downgraded ₹120 Cr long-term and ₹176 Cr short-term CE facilities to CARE A (CE) and CARE A1 (CE) respectively.
- Guarantor Vindhya Telelinks saw debtors increase from ₹1,527.71 Cr in FY25 to ₹2,191.85 Cr as of December 2025.
- BCL standalone rating (₹55 Cr) placed on 'Rating Watch with Positive Implications' due to the VTL merger.
- Merger swap ratio confirmed at 10 equity shares of VTL for every 115 shares of BCL held.
- BCL 9MFY26 revenue rose to ₹557 Cr from ₹505 Cr YoY, but operating margins dipped to 4.66% from 4.93%.
Birla Cable Limited has filed its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The filing confirms that for the quarter ended March 31, 2026, all physical security certificates received for dematerialization were processed according to regulatory standards. The company's Registrar and Share Transfer Agent, MUFG Intime India Private Limited, verified that physical certificates were mutilated, cancelled, and replaced by the depository's name in the records. This is a standard administrative procedure to ensure the integrity of electronic shareholding.
- Confirmed compliance with SEBI Regulation 74(5) for the quarter ended March 31, 2026.
- Physical security certificates received for dematerialization were mutilated and cancelled after verification.
- The name of the depository was substituted in the register of members as the registered owner within prescribed timelines.
- Certificate issued by Registrar and Share Transfer Agent, MUFG Intime India Private Limited (formerly Link Intime).
Birla Cable Limited has announced the launch of its second 100-day campaign, "Saksham Niveshak," running from April 1, 2026, to July 9, 2026. The initiative is designed to assist shareholders in updating their KYC details, bank mandates, and contact information to facilitate the payout of unclaimed dividends. This administrative drive aims to prevent the mandatory transfer of shares and dividends to the Investor Education and Protection Fund (IEPF) after a seven-year period. The company has made details of unclaimed dividends for the past seven years available on its website for shareholder verification.
- The 100-day campaign is scheduled to run from April 1, 2026, through July 9, 2026.
- Aims to facilitate the recovery of unpaid or unclaimed dividends for the past 7 years.
- Shareholders holding physical shares must update PAN, bank details, and nominations with RTA MUFG Intime India Pvt. Ltd.
- The initiative follows guidelines issued by the Investor’s Education and Protection Fund Authority (IEPFA) and the Ministry of Corporate Affairs.
Birla Cable Limited has announced the closure of its trading window for all designated persons and their immediate relatives starting April 1, 2026. This action is a standard regulatory requirement under SEBI (Prohibition of Insider Trading) Regulations, 2015. The closure is ahead of the declaration of the audited standalone and consolidated financial results for the quarter and financial year ending March 31, 2026. The trading window will remain closed until 48 hours after the results are officially announced.
- Trading window closure effective from April 1, 2026.
- Closure is in anticipation of audited financial results for Q4 and FY ending March 31, 2026.
- Window will reopen 48 hours after the public declaration of financial results.
- Applies to all Designated Persons and their immediate relatives as per SEBI regulations.
Birla Cable Limited has approved a scheme of amalgamation with Vindhya Telelinks Limited, which will result in the dissolution of Birla Cable. Shareholders of Birla Cable will receive 10 shares of Vindhya Telelinks for every 115 shares held. The merger consolidates the M.P. Birla Group's cable and EPC businesses, creating a unified entity with a combined 9-month turnover of approximately Rs. 3,118 crore. This strategic move aims to enhance operational efficiency, strengthen the balance sheet for large-scale infrastructure projects, and simplify the corporate structure.
- Share swap ratio: 10 shares of Vindhya Telelinks (FV Rs. 10) for every 115 shares of Birla Cable (FV Rs. 10).
- Birla Cable reported a 9-month turnover of Rs. 557.01 crore and a net worth of Rs. 229.12 crore as of December 2025.
- Vindhya Telelinks reported a standalone 9-month turnover of Rs. 2,561.27 crore and a net worth of Rs. 1,335.37 crore.
- Post-merger, the total share capital of Vindhya Telelinks will expand from 1.18 crore to 1.39 crore shares.
- Public shareholding in the merged entity (Vindhya Telelinks) will increase to 58.74% from 56.46%.
Birla Cable Limited has announced a special one-year window from February 5, 2026, to February 4, 2027, for the transfer and dematerialization of physical shares. This initiative, following a SEBI circular, specifically targets securities purchased or sold prior to April 1, 2019, including previously rejected transfer requests. Shares processed through this window will be mandatorily credited in demat form and will be subject to a one-year lock-in period. This move aims to facilitate ease of investment and secure rights for long-term physical share holders.
- Special window active for one year from February 5, 2026, to February 4, 2027.
- Applies to physical securities purchased or sold before the April 1, 2019, deadline.
- Transferred shares will face a mandatory 1-year lock-in period from the date of registration.
- Includes provisions for re-lodging previously rejected or deficient transfer requests.
- Excludes securities currently in legal dispute or those already transferred to the IEPF.
Birla Cable reported a strong performance for the quarter ended December 31, 2025, with consolidated revenue from operations growing 29.6% YoY to ₹204.51 crore. Net profit saw a significant jump of 178% YoY to ₹4.02 crore, driven by higher operational scale and a sharp reduction in finance costs. The company's 9-month profit for FY26 reached ₹6.06 crore, already surpassing the full-year profit of FY25. Notably, the bottom line was impacted by a one-time employee benefit expense of ₹2.23 crore due to the implementation of new Labour Codes.
- Revenue from operations grew 29.6% YoY to ₹204.51 crore in Q3 FY26 compared to ₹157.80 crore in Q3 FY25.
- Consolidated Net Profit increased by 178% YoY to ₹4.02 crore from ₹1.44 crore in the same quarter last year.
- Finance costs significantly reduced to ₹2.23 crore in Q3 FY26 from ₹3.94 crore in Q3 FY25, indicating improved debt management.
- 9M FY26 Net Profit of ₹6.06 crore has already exceeded the total FY25 annual profit of ₹5.03 crore.
- Employee expenses include a ₹2.23 crore incremental impact from the new Labour Codes effective November 2025.
Birla Cable Limited has announced the resignation of Shri R. Sridharan from his positions as Manager and Chief Executive Officer (CEO). The resignation is effective from the close of business hours on January 19, 2026, and is attributed to personal reasons. Following this departure, he will also cease to be a Key Managerial Personnel (KMP) of the company. The board has acknowledged his long-standing association and contributions to the firm.
- Shri R. Sridharan resigned as Manager and CEO effective January 19, 2026
- The resignation is cited as being due to personal reasons
- He ceases to be a Key Managerial Personnel (KMP) under Section 203 of the Companies Act
- The company has not yet announced a successor for the CEO position
Birla Cable Limited has announced the resignation of Shri R. Sridharan from his dual role as Manager and Chief Executive Officer (CEO). The resignation is effective from the close of business hours on January 19, 2026, and is attributed to personal reasons. Consequently, he also ceases to be a Key Managerial Personnel (KMP) for the company. While the company acknowledged his long association, a successor has not yet been named in this announcement.
- Shri R. Sridharan resigned as Manager and CEO effective January 19, 2026.
- The resignation is cited as being due to personal reasons.
- Sridharan ceases to be a Key Managerial Personnel (KMP) under Section 203 of the Companies Act.
- The company has not yet announced a replacement or interim leadership plan in this filing.
Birla Cable Limited has filed its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018. The filing confirms that all physical share certificates received for dematerialization during the quarter ended December 31, 2025, were processed according to regulatory standards. The company's Registrar and Share Transfer Agent, MUFG Intime India Private Limited, verified that certificates were mutilated and cancelled. This ensures that the depository's name is correctly updated in the register of members within the prescribed timelines.
- Compliance certificate submitted for the quarter ended December 31, 2025.
- Confirmation that physical security certificates were mutilated and cancelled after due verification.
- MUFG Intime India Private Limited confirmed the substitution of the depository's name in the records.
- The process was completed within the prescribed SEBI timelines for dematerialization requests.
Birla Cable Limited has announced the closure of its trading window for all designated persons starting January 1, 2026. This action is in compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015, ahead of the company's financial results for the quarter and nine months ending December 31, 2025. The window will remain closed until 48 hours after the unaudited standalone and consolidated financial results are officially declared. This is a standard regulatory procedure to prevent insider trading before the public disclosure of financial performance.
- Trading window closure effective from January 1, 2026.
- Closure pertains to the financial results for the quarter and nine months ending December 31, 2025.
- Window to reopen 48 hours after the declaration of standalone and consolidated financial results.
- Applies to all Designated Persons and their immediate relatives as per the company's internal code.
Birla Cable Limited has mutually terminated its Power Purchase Agreement (PPA) and related Shareholders Agreement with Continuum MP Windfarm Development Private Limited. The 1.5 MW wind-solar hybrid power project was deemed non-feasible for power supply under existing open access regulations. Consequently, the company is divesting its 17,39,400 equity shares in the project back to the promoter at the original cost of Rs 10 per share. The company will receive a total cash consideration of Rs 173.94 Lakhs within seven working days without any additional liability.
- Termination of 1.5 MW wind-solar hybrid power offtake agreement due to supply non-feasibility.
- Divestment of 17,39,400 equity shares in Continuum MP Windfarm Development Private Limited.
- Total cash consideration of Rs 173.94 Lakhs to be received at the original purchase price of Rs 10 per share.
- Exit completed without any financial liability or penalty on either party.
Financial Performance
Revenue Growth by Segment
The cable segment registered a healthy 33% growth in FY25, primarily driven by strong demand for copper cables. However, the EPC segment saw a significant decline, with revenue from original SWSM village orders dropping 47.5% to INR 835 Cr in FY25 from INR 1,592 Cr in FY24. The manufacturing segment previously witnessed 26% growth in FY23.
Profitability Margins
Profitability margins at the consolidated level moderated to 6.65% in FY25 from 7.27% in FY24. The PBILDT and PAT margins in FY23 were 9.72% and 5.32%, respectively. PBIT margins in the cable segment fell to approximately 4% in FY24 and FY25 from 10-11% in FY23 due to a lower share of high-margin OFC sales.
EBITDA Margin
PBILDT margin stood at 6.65% in FY25, a decrease from 7.27% in FY24. Core profitability was impacted by a change in revenue mix, with a rising share of lower-margin copper cables and a decline in high-margin EPC and OFC projects.
Capital Expenditure
The company added INR 28.43 Cr to Fixed Assets in FY24, mainly for the expansion of existing manufacturing capacity. Purchase of Property, Plant, and Equipment was INR 1.20 Cr for the half-year ended September 2025 compared to INR 8.49 Cr in the previous period.
Credit Rating & Borrowing
BCL has a 'Stable' outlook from CARE Ratings. The rating is supported by the MP Birla Group, which provides unsecured loans and corporate guarantees for working capital facilities. Average utilization of fund-based working capital limits was approximately 71% for the 12 months ending April 2025.
Operational Drivers
Raw Materials
Copper and Optical Fibre are the primary raw materials. Copper cables typically have thinner and more volatile margins compared to Optical Fibre Cables (OFC).
Capacity Expansion
Manufacturing capacity was expanded in FY24 with a capital outlay of INR 28.43 Cr. Current installed capacity in units is not specified.
Raw Material Costs
Raw material costs are highly volatile, particularly for copper and optical fibre. The company uses selective hedging via forward contracts to manage exchange fluctuations related to imports, which totaled INR 153.10 Cr in FY23.
Manufacturing Efficiency
Inventory Turnover Ratio (ITR) improved 36.94% to 10.43 times in FY25 from 7.65 times in FY24 due to decreased inventory levels.
Strategic Growth
Expected Growth Rate
25%
Growth Strategy
The company is diversifying its order book, with the energy sector's share increasing to 58% from 32%. Growth will be driven by the execution of higher-margin EPC orders and a gradual recovery in OFC demand expected in FY26. The company also aims for a Total Operating Income (TOI) of more than INR 1,000 Cr to achieve positive rating sensitivity.
Products & Services
Optical Fibre Cables (OFC), Copper Cables, and Engineering, Procurement, and Construction (EPC) services for the energy and water sectors (e.g., SWSM projects).
Brand Portfolio
Birla Cable, MP Birla Group.
Market Expansion
The company is expanding its presence in the energy sector, which now represents 58% of the order book profile.
Strategic Alliances
The company operates as part of the MP Birla Group, receiving financial support and corporate guarantees from group entities like VTL.
External Factors
Industry Trends
Telecom operators are shifting toward optical fibre cables, requiring network improvements. The industry faces stiff competition due to high installed capacity and the entry of players with inferior technology.
Competitive Landscape
The cable industry is characterized by cut-throat competition and players offering products at highly advantageous price levels, which pressures margins.
Competitive Moat
The company's moat is derived from being part of the resourceful MP Birla Group, which provides demonstrated financial support and operational synergies. This support is sustainable as long as group linkages remain strong.
Macro Economic Sensitivity
Demand is mainly dependent on the operational and capital expenditure from telecom and power distribution companies.
Consumer Behavior
Telecom operators are increasingly demanding optical fibre cables for network upgrades, shifting away from traditional copper-based infrastructure.
Regulatory & Governance
Industry Regulations
The company must comply with accepted standards of propriety, regulatory compliances concerning business operations, and SEBI (Listing Obligations and Disclosure Requirements) Regulations.
Legal Contingencies
The company monitors current or future litigations as part of its financial risk identification, but specific case values are not disclosed.
Risk Analysis
Key Uncertainties
Key risks include raw material price fluctuations (copper and optical fibre), execution risks in large tender-based EPC orders, and the timely realization of receivables from major projects.
Technology Obsolescence Risk
The company faces risks from competitors offering products with inferior technology that do not meet international standards, potentially affecting overall network quality.
Credit & Counterparty Risk
The company has exposure to an elongated collection cycle in the EPC segment, with the operating cycle stretching to 143 days in FY25 from 111 days in FY24.