Detailed Narrative
Q4 FY26 Performance and Full Year Resilience
Paramount Communications reported a strong sequential recovery in Q4 FY26, with revenue reaching ₹573 crores, marking a 13.6% YoY and 24.5% QoQ growth. EBITDA, including other income, was ₹38.8 crores, and the EBITDA margin improved by 250 basis points QoQ to 6.7%. For the full financial year FY26, revenue from operations grew 23% YoY to ₹1,912 crores, demonstrating the company's resilience despite significant challenges from US tariff disruptions.
Impact of US Tariffs and Market Recovery
FY26 was significantly impacted by escalating US tariffs, which rose from 10% to 50% over the year, causing major disruption to the export business. Despite this, Paramount maintained its presence in the US market, even at sub-economic margins. Following US Supreme Court rulings in early 2026, tariffs were invalidated, restoring India's competitive position. Management expects a strong demand pull from the US market from Q2 FY27 onwards, driven by the country's need for over $1 trillion in grid infrastructure investment.
Strategic Pivot to Domestic Demand
In response to export market volatility🌐, Paramount successfully pivoted to domestic demand, which grew 27% in FY26 to ₹1,361 crore, increasing its share of total revenue to 71%. This strategic flexibility allowed the company to compensate for export losses and maintain overall growth. The domestic order book, as of March 31, 2026, stood at ₹508 crores, with power cable orders alone increasing by 66% YoY to ₹466 crores.
Narmadapuram Greenfield Project for Future Growth
To address physical space constraints at existing plants and drive future growth, Paramount is accelerating its Narmadapuram greenfield project in Madhya Pradesh. This third manufacturing facility, with an investment of approximately ₹300 crores by FY28, is expected to partly commence operations in Q1 FY28. It targets sales of ~₹500 crores in FY28, scaling to ₹1,200 crores by FY29, with initial margins of 9-10% and overall asset turns of 6.5-7.5x after Phase 2.
Long-term Vision and Margin Improvement Drivers
Paramount aims to achieve a revenue milestone of ₹5,000 crores within the next five years (by FY31), effectively doubling sales every three to four years. This growth will be fueled by the Narmadapuram expansion, deeper domestic penetration, export diversification, and a focus on higher value-added products like EHV cables. Management expects overall margins to recover to FY25 levels by the end of FY27, driven by new product introductions, US market recovery, and volume growth.
Capital Allocation and Working Capital Management
The Narmadapuram project's ~₹300 crore investment will be funded through a mix of equity (₹122 crores, including ₹30 crores from promoters and ₹92 crores from investors), internal accruals, and modest debt. The company's debt-equity ratio is currently very low, with total debt around ₹110 crores against working capital limits. While trade receivables increased at FY26 end due to weighted Q4 dispatches, management expects normalization within Q1 FY27, with over three-quarters already recovered by mid-May.