Detailed Narrative
Strong FY26 Performance Driven by Infrastructure Growth
Prime Cable Industries reported a robust FY26, with revenue growing 67% year-on-year to approximately INR235 crores, and PAT increasing by 66.2% to INR12.3 crores from INR7.4 crores in FY25. This growth was supported by strong execution across utilities and infrastructure-led projects, healthy traction from private EPC customers, and sustained order inflows, benefiting from India's broader wires and cables sector tailwinds.
Strategic Shift Towards Medium Voltage Cables and Capacity Expansion
The company is strategically expanding into the higher-margin medium voltage (MV) cable segment. Its third manufacturing facility at Ghiloth, focusing on MV cables, is expected to be operational by Q2 FY27, adding INR150 crores in annual revenue capacity. An additional adjacent facility will further add INR100 crores, bringing the total installed revenue capacity to over INR600 crores by Q1 FY28, funded through internal accruals and debt.
Improved Profitability and Margin Outlook
For FY26, EBITDA margins stood at approximately 10%, up from 9.5% in H2 FY26. Management expects FY27 EBITDA margins to remain stable at 10-11% during the initial ramp-up of MV facilities, with potential for expansion to 12.5-13% as MV contribution increases and product mix shifts in FY27 and FY28. The company also incurred INR2 crores in one-time📎 expenses in H2 FY26, which are not expected to recur.
Working Capital Management and Normalization Efforts
As of March 31, 2026, the company reported receivable days of 85, inventory days of 62, and a cash conversion cycle of 81 days. Receivables were elevated due to higher Q4 billing. Management expects these metrics to normalize to approximately 70-80 debtor days and an 80-day working cycle in H1 FY27, driven by a strategic focus on increasing private sector contribution for better cash flow efficiency.
Robust Order Book and Execution Visibility
The order book stood at approximately INR170 crores as of March 31, 2026, increasing to INR191 crores by May end after securing a INR32 crore order from a private EPC contractor. The current order mix is 40-45% from EPC and 50-55% from government tenders, with approximately 25% for medium-voltage cables. Management aims to maintain a 4-6 month order book to mitigate raw material price volatility impacts on EBITDA margins.
Competitive Strengths and Market Positioning
Prime Cable leverages its 30+ years of experience, extensive product range (3,000+ SKUs), and approvals across 18 states and major PSUs (GE, Siemens, L&T, BHEL, NTPC, PowerGrid) to create significant entry barriers. The company's ability to deliver customized solutions and its project-oriented manufacturing model differentiate it from larger, mass-product manufacturers, enabling participation in specialized, high-value opportunities.