Detailed Narrative
Strong H1 FY26 Financial Performance
Prime Cable Industries Limited delivered a robust performance in H1 FY26, with revenue from operations growing 61.9% year-on-year to ₹90.7 crores. This growth was supported by strong demand from government and infrastructure projects, as well as private sector clients. EBITDA increased by 84.4% year-on-year to ₹9.7 crores, with margins improving to 10.7% from 9.4%. Profit after tax more than doubled to ₹5.48 crores, achieving a margin of 6.04%.
Robust Order Book and Pipeline
The company maintained a healthy order book of ₹106 crores as of September 30, 2025, with ₹48 crores from private institutional clients and ₹58 crores from government projects. This order book is expected to be executed within approximately four to five months. Additionally, the company has a strong pipeline of tenders worth ₹500-600 crores for the next five to six months, indicating continued demand visibility.
Capacity Expansion and Utilization Targets
Current production capacity stands at ₹350 crores, with capacity utilization at 55% in H1 FY26, up from 35% in the last financial year. The company plans to add ₹150 crores in capacity for medium voltage cables using IPO proceeds, with commercial production expected by Q2 of the next financial year. Management targets existing capacity utilization to reach 60-65% by FY26 end and over 80% by next year, with the new capacity achieving 30-40% utilization by the end of next year.
Product Diversification and Market Reach
Prime Cable Industries is focusing on diversifying its product portfolio and expanding its market presence. The company plans to add solar cables to its product offerings by the end of November or first half of December 2025, tapping into the growing solar power generation sector. Furthermore, the company is actively working to expand its vendor approvals to the remaining 12-13 states in India, aiming to reduce dependence on single clients or states and enhance market penetration.
Operational Efficiency and Margin Management
The company's EBITDA margins improved to 10.7% due to better operational leverage and cost control. While gross margins saw a ~2% dip, management attributed this to price variations in finished goods and changes in inventories, rather than core operational issues. The company is focused on maintaining double-digit EBITDA margins and improving working capital efficiency, including reducing debtor days and working cycle days.