Dynamic Cables Limited — Q3 FY26 earnings call

Call held 2 Feb 2026

Management summary

Dynamic Cables reported a strong Q3 FY26, with nine-month sales up 21% YoY and PAT growing 46% to ₹60 crores. The company's order book reached ₹787 crores, ensuring revenue visibility. While Q3 volume growth was low at 2-3% (YoY), management highlighted progress on new growth areas like renewable energy cables and the upcoming E-Beam facility, which received AERB approval. Challenges persist in the US export market due to tariffs.

Highlights

  • Strong and consistent performance in Q3 FY26, delivering guided revenue and profitability.

  • Nine-month sales increased by 21% YoY, demonstrating robust growth.

  • Operating profit for the nine months rose by 29% to ₹92 crores, with operating margin at 10.9%.

  • Profit after tax grew significantly by 46% to ₹60 crores for the nine months.

  • Order book stands at ₹787 crores as of December 31, 2025, providing strong revenue visibility.

Concerns

  • Q3 volume growth was weak at 2%-3% (YoY Q3 vs Q3), attributed to product mix and measurement complexities.

  • Gross margin saw a quarter-on-quarter dip, though management clarified it was due to sales mix, not raw material pass-through issues.

  • US export plans have not materialized due to unfavorable tariff situations, delaying market entry.

Key financials

2 periods

Headline

  • Nine-Month Sales Growth
    21%
  • Nine-Month Operating Profit
    ₹92 Cr
    YoY +29%
  • Nine-Month Operating Margin
    10.9%
  • Nine-Month PAT
    ₹60 Cr
    YoY +46%
  • Nine-Month Volume Growth
    17%

Q3

  • Volume Growth
    2%

What they filed

Q1 FY27: revenue up 33.2%, net profit up 38.9% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue234 252 331 262 282 +21%299 +19%355 +7%349 +33%
EBITDA24 26 34 27 31 +29%34 +31%38 +12%38 +41%
Net profit14 16 24 18 20 +43%22 +38%24 +0%25 +39%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Customer-wise Contribution (Nine Months)
    13% Government Sales78% Private Sales9% Exports
  • Product-wise Contribution (Nine Months)
    60% HV Cable33% LV Cable7% Conductors

Order book

high confidence

Total value

₹787 Cr

as of 2025-12-31 quantified

10% QoQ

Composition

  • Solar cable (product) 16%
The order book is a function of our capacity to deliver and is balanced with our deliverable capacity, which has increased due to de-bottlenecking and brownfield CAPEX.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex Capex disclosed
    • New E-Beam facility
    • General CAPEX for future growth
    • Current CAPEX generating additional turnover ₹40 Cr
    The new plant is progressing as planned and is expected to be commissioned by the end of FY26. Additionally, we have started planning for CAPEX to support future growth. The details of the same will be shared as and when finalized by the Board. So, we are doing a CAPEX of around Rs.40-45 crores, which should give us typically an additional turnover of around Rs.250 crores, whatever.

Guidance & targets

Revenue

  • Long-term Revenue Growth Revenue · Longer run · High confidence 18%-20%
    We believe that we should continue to compound our growth, our business at this way in the longer run.

    — Ashish Mangal

Profitability

  • Long-term Operating Margin (B2B) Profitability · Long-term yearly basis · High confidence 10%-11%
    The normalized margin on a long-term yearly basis will remain in 10%-10.5%-11% range.

    — Management

  • Long-term Gross Margin Profitability · Longer term · High confidence 20%
    But on a longer term, if you look at it, it is 20% gross margin which comes.

    — Management

Capacity

  • Optimum Capacity Utilization Capacity · Ongoing · High confidence 80%-85%
    our optimum capacity utilization is around 80%-85%.

    — Management

Product Segment Growth

  • Solar Cable Business Growth Product Segment Growth · Next three to four years · High confidence Double
    Yes, I believe that in the next three, four years we should be in a situation to double this business at least.

    — Management

Capex

  • E-Beam Facility Commissioning Capex · End of FY26 · High confidence Commissioned
    The new plant is progressing as planned and is expected to be commissioned by the end of FY26.

    — Ashish Mangal

  • Additional Turnover from Current CAPEX Capex · Annual · High confidence ₹250-260 crores
    So, we are doing a CAPEX of around Rs.40-45 crores, which should give us typically an additional turnover of around Rs.250 crores, whatever. If you do 6x, it will be around Rs.250-260 crores.

    — Management

What to watch in Q4 FY26

E-Beam Facility Commissioning Status

End of FY26
Current Progressing as planned
Target Commissioned

Why it matters

This facility is a key milestone for capacity expansion and new product capabilities, crucial for future growth.

The new plant is progressing as planned and is expected to be commissioned by the end of FY26.

Risks & concerns

  • US Export Market Tariffs

    medium

    Unfavorable tariff situations are delaying the company's entry into the US export market, despite product approvals, impacting a potential growth avenue.

    Management acknowledged

  • Weak Q3 Volume Growth

    low

    Q3 volume growth was 2-3% (YoY Q3 vs Q3), which management attributed to product mix and complexities in volume measurement for customized cables, rather than competitive pressure.

    Analyst acknowledged

  • Quarterly Gross Margin Fluctuation

    low

    Gross margins can fluctuate QoQ due to the sales mix (execution of high vs. low margin orders), but raw material price variations are 100% passed through in their B2B model.

    Analyst explained

Q&A highlights

5 direct
Weak Q3 Volume Growth and Competitive Pressure Partial
I mean it is not an apple-to-apple comparable business with our competitors, because our competitors are more channel-driven businesses, whereas we are completely B2B business, and therefore it is not exactly comparable in that terms.

Analyst questioned the low Q3 volume growth and potential market share loss, prompting management to explain the complexities of volume measurement and the differences in business models within the cable industry.

Asked by Piyush

Gross Margin Fluctuation and Raw Material Pass-through Direct
The gross margin has nothing to do with input prices or raw material prices in our business, because 100% of our price variation or the raw material price fluctuation is passed on to our customers.

Clarified that raw material price changes are fully passed through in their B2B model, and quarterly margin variations are due to product/sales mix, not absorption of input costs.

Asked by Nitin Jain

Order Book Growth and Dispatch Normalization Direct
this quarter the order book has been encouraging; so it is a 10% growth on a quarterly basis which is quite encouraging, and if you look at our order book growth pattern, you will see a similar trend...

Provided context on the 10% QoQ order book growth and confirmed that dispatches are picking up in Q4 due to seasonality and government project-related business.

Asked by Balasubramanian

Revenue Generation from New CAPEX Direct
So, we are doing a CAPEX of around Rs.40-45 crores, which should give us typically an additional turnover of around Rs.250 crores, whatever. If you do 6x, it will be around Rs.250-260 crores.

Quantified the expected additional annual turnover from the current CAPEX, providing a clear financial return on investment.

Asked by Mehul

US Export Market Viability and Tariffs Direct
Unfortunately, our US export plans have not materialized because of this tariff announcement. Although we are getting continuous approvals under the UL standards for our products, but the tariff situation is unfavorable and that is for delaying our entry into the US markets.

Highlighted a significant external challenge (unfavorable tariffs) that is currently preventing the company from entering the US export market, despite product approvals.

Asked by Nitin Jain

Solar Cable Business Growth Targets Direct
I believe that in the next three, four years we should be in a situation to double this business at least.

Provided a specific growth target for the solar cable segment, which is identified as a key growth driver, currently contributing over 15% to sales.

Asked by Nitin Jain

Data Center and Wind-related Products Update Partial
I mean we are more active in the solar side not on the wind side as such. ... On the data center wise, I think the industry as such is also in a very niche stage and it is very, very difficult to kind of provide an update on a quarterly basis.

Clarified the company's focus (solar over wind) and indicated that the data center market is still nascent, making specific updates difficult, suggesting it's not an immediate revenue driver.

Asked by Nitin Jain

2 min read 6 chapters

Detailed narrative

Strong Financial Performance in Q3 FY26 and Nine Months

Dynamic Cables delivered a strong and consistent performance in Q3 FY26, meeting its guided revenue and profitability targets. For the nine months ended December 31, 2025, the company reported a 21% year-on-year increase in sales. Operating profit for this period rose by 29% to ₹92 crores, achieving an operating margin of 10.9%. Profit after tax also saw significant growth, increasing by 46% to ₹60 crores, reflecting effective execution and financial management.

Robust Order Book and Revenue Visibility

As of December 31, 2025, Dynamic Cables maintained a healthy order book of ₹787 crores, ensuring strong revenue visibility for future periods. This represents a 10% quarter-on-quarter growth from the previous quarter's ₹721 crores. Management indicated that the order book is carefully managed to align with the company's deliverable capacity, which has been enhanced through de-bottlenecking and brownfield CAPEX initiatives.

Strategic Growth Initiatives and Capacity Expansion

The company is actively pursuing growth opportunities in power distribution, smart metering, and renewable energy sectors. A significant milestone was achieved with the receipt of AERB approval for its new E-Beam facility. This facility is on track for commissioning by the end of FY26, which will enable the company to expand into new product lines, such as DC cables for solar applications, further diversifying its offerings.

Product Mix and Margin Management

For the nine months, HV cables constituted 60% of product-wise contribution, LV cables 33%, and conductors 7%. Management clarified that quarterly fluctuations in gross margins are primarily driven by the sales mix of high-margin versus low-margin orders executed, rather than raw material price volatility. The company's B2B model ensures 100% pass-through of raw material price variations, maintaining a long-term gross margin of 20% and operating margin of 10-11%.

Solar Cable Business and US Export Challenges

The solar cable business is a key growth area, contributing over 15% to current sales and 16-17% to the order book. Dynamic Cables aims to double this segment's business within the next three to four years. However, the company's plans for US exports have been hampered by unfavorable tariff announcements, leading to delays in market entry despite obtaining necessary UL standard approvals.

Volume Growth Dynamics and Capacity Utilization

While nine-month volume growth stood at 17%, Q3 experienced a lower year-on-year volume growth of 2-3%. Management attributed this to the complex nature of volume measurement in the customized cable industry, where metal content is only 60-70% of total cost, and product mix variations. Capacity utilization remained stable at 75-80%, with an optimal range of 80-85% depending on specific cable specifications and seasonal demand.

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