Cables Electricals Archives

FINCABLES – Finolex Cables – Q4 FY26 Earnings Call – 29-May-26

FINCABLES/ Finolex Cables’ topline growth hinges on communications scale-up and EHV JV execution; margins depend on preform cost advantages and copper/FX stability; cash flow recovery tied to inventory normalization and supply chain resilience.

1–2 minutes

Also see: FINCABLES – Finolex Cables – Q4 FY26 Financial Results – 28-May-26

3-Scenario Framework

📊 Base Case (50% Probability)

Drivers: Middle East conflict lingers but stabilizes, fiber prices moderate, preform plant stabilizes by Q3 FY27 (5-7% cost advantage). EHV JV maintains INR 400-450 crore revenue, communications EBIT margins improve to 7-8%. Electrical segment grows 15% on project demand, but retail remains weak.
Outcome: Revenue +15-18% YoY, EBITDA margins expand 100-120 bps, cash flow improves but lags due to inventory.

FINCABLES – Finolex Cables – Q4 FY26 Financial Results – 28-May-26

Finolex Cables’ FY26 delivered 18.8% revenue growth but just 1.8% PAT, with WC build in inventories/receivables crushing cash generation. Communication Cables show early margin recovery, but re‑rating hinges on FY27 WC normalization as copper cycle turns and collections catch up — shifting from value to cash compounder.

1–2 minutes

🔍 Observations

Topline

Revenue surged 18.8% YoY (₹5,319 Cr → ₹6,321 Cr), with Q4 FY26 alone up 22.3% QoQ (₹1,599 Cr → ₹1,951 Cr) — strongest quarter of the year.
Electrical Cables drove the bulk, contributing ₹5,490 Cr (86.9% of net revenue), up 22.0% YoY; Communication Cables marginally declined to ₹500 Cr from ₹508 Cr.
Copper Rods segment grew 27.2% YoY (₹1,684 Cr → ₹2,143 Cr) but is largely inter-segment; net contribution post eliminations is modest.

Bottomline

PAT grew a thin 1.8% YoY (₹701 Cr → ₹714 Cr) despite 18.8% topline growth — muted profit leverage driven by cost absorption.
Associate/JV income fell 11.8% YoY (₹232 Cr → ₹205 Cr), reducing an important non-operating cushion; Q4 FY26 associate income of ₹107 Cr (vs ₹49 Cr in Q4 FY25) was an outlier quarter.
Tax efficiency improved: effective tax rate fell to 23.1% in FY26 vs 24.0% in FY25, providing marginal PAT support.

Margins

EBIT margin (segment EBIT ÷ net revenue): FY26 = ₹583 Cr ÷ ₹6,321 Cr = 9.2% vs FY25 = ₹492 Cr ÷ ₹5,319 Cr = 9.2% — flat YoY despite scale.
PAT margin compressed: FY26 = ₹714 Cr ÷ ₹6,321 Cr = 11.3% vs FY25 = ₹701 Cr ÷ ₹5,319 Cr = 13.2% — 190 bps dilution as associate income share in total profits declined proportionally.
Material cost ratio rose: FY26 cost of materials consumed = ₹5,328 Cr on ₹6,321 Cr revenue = 84.3% vs FY25 ₹4,360 Cr on ₹5,319 Cr = 82.0% — input cost pass-through pressure evident.

Growth Trajectory

Electrical Cables EBIT grew 18.3% YoY (₹476 Cr → ₹563 Cr), in line with revenue — segment-level margins held.
Communication Cables turned meaningfully profitable: EBIT ₹8.2 Cr (FY25) → ₹13.9 Cr (FY26), a 69.8% jump on flat revenue — operating leverage kicking in.
Copper Rods EBIT declined (₹4.4 Cr → ₹3.2 Cr) on higher revenues — margin dilution at the commodity pass-through segment, as expected.

KEI – KEI Industries – Q4 FY26 Earnings Call – 5-May-26

KEI Industries’ topline growth hinges on Sanand execution and metal prices, while margins depend on export mix and cost pass-through; base case supports 20%+ revenue CAGR with stable 11% EBITDA margins.

1–2 minutes

Also see: KEI – KEI Industries – Q4 FY26 Financial Results – 4-May-26

3-Scenario Framework

📊 Base Case (60% Probability)

Drivers: Sanand Phase 1 stabilizes by H1 FY27, copper prices flat to +5%, export share reaches 18–20%. Volume grows 17%, revenue 20–22%, EBITDA margin 10.8–11%. Capex funded internally; working capital cycle improves to 2.75 months. EPS growth: ~20%.

POLYCAB – Polycab India – Q4 FY26 Earnings Call – 6-May-26

POLYCAB’s topline remains robust on structural domestic demand and export diversification, bottomline resilient via margin discipline and cost pass-through, but margins face near-term pressure from mix shifts and input costs.

1–2 minutes

Also see: POLYCAB – Polycab India – Q4 FY26 Financial Results – 6-May-26

3-Scenario Framework

📊 Base Case (60% Probability)

Drivers: Domestic demand resilience (power sector capex, real estate) + export recovery (U.S./EU grid upgrades). Wires & Cables grows 15-18%, FMEG 20-25%, with EBITDA margins at 13-14%. Exports reach 6-7% of revenue by FY27. Capex at INR 14-16B/year supports capacity. PAT margins sustain at ~9%.

RRKABEL – R R Kabel – Q4 FY26 Earnings Call – 30-Apr-26

RRKABEL/ R R Kabel’s topline growth hinges on export recovery and cable scaling; margins depend on RM stability and capex execution; FMEG turnaround is the key downside risk.

1–2 minutes

Also see: RRKABEL – R R Kabel – Q4 FY26 Financial Results – 30-Apr-26

3-Scenario Framework

📊 Base Case (50% Probability)

Middle East disruptions persist H1 FY27 but export diversification offsets 50% of revenue loss. RM volatility continues; pricing pass-through lags in FMEG. Capex phased as planned; cables reach 30% of Wires & Cables revenue by FY28. Topline: INR 11,000–11,500 Cr in FY27; margins expand 100–150 bps.

POLYCAB – Polycab India – Q4 FY26 Financial Results – 6-May-26

Polycab’s FY26 strong: revenue scale, margin expansion, FMEG profitability inflection, FCF nearly tripled. FY27 watch items: ₹42,656M acceptances unwind, receivables impairment trajectory, EPC stabilization. Earnings engine intact, but investors must stress‑test working capital assumptions before fully crediting OCF print.

1–2 minutes

🔍 Observations

Topline

Revenue surged 28.9% YoY to ₹288,838M in FY26, with Q4 FY26 alone at ₹88,645M — up 26.9% YoY, signaling accelerating momentum into year-end.
Wires & Cables dominates at ₹255,344M (88.4% of segmental revenue), growing 32.7% YoY; FMEG scaled 23.0% YoY to ₹20,693M.
EPC contracted 13.2% YoY to ₹16,665M — the only segment shrinking, dragging blended growth.

Bottomline

PAT jumped 32.4% YoY to ₹27,084M in FY26; Q4 PAT at ₹7,856M grew 7.0% YoY but was up 24.7% QoQ, reflecting strong sequential recovery.
Basic EPS rose from ₹134.34 to ₹177.53 (+32.2% YoY), tracking PAT growth closely with minimal dilution.
Effective tax rate eased to 25.0% in FY26 vs. 24.3% in FY25, largely stable; deferred tax credit of ₹344M aided PAT modestly.

Margins

EBITDA proxy: PBT ₹36,131M + D&A ₹3,859M + Finance Costs ₹2,430M = ₹42,420M → EBITDA margin 14.7% on revenue of ₹288,838M vs. ~13.7% in FY25 (₹30,678M / ₹224,083M) — ~100bps expansion.
Net profit margin improved to 9.4% in FY26 from 9.1% in FY25 on revenue; contained material cost ratio (71.3% vs. 68.9% in FY25) offset by operating leverage on fixed costs.
FMEG turned profitable in FY26 at ₹548M segment profit vs. a loss of ₹389M in FY25 — a structural inflection.

Growth Trajectory

Revenue CAGR implied over FY25–FY26: 28.9%; PAT CAGR: 32.4% — bottomline outpacing topline signals operating leverage in play.
Q4 FY26 revenue of ₹88,645M is the highest ever quarterly print, up 16.0% QoQ — growth isn’t decelerating.
EPC revenue decline and rising material costs (₹206,157M vs. ₹154,174M, +33.7%) are the two variables to watch for FY27 sustainability.

KEI – KEI Industries – Q4 FY26 Financial Results – 4-May-26

KEI’s FY26 shows accelerating topline, margin expansion, zero debt, and stronger cash conversion. Capex into C&W capacity aligns with 33.5% profit growth and infra tailwinds, though returns emerge FY27–28. EPC margin collapse and rising payables need resolution before next re‑rating can be justified.

1–2 minutes

🔍 Observations

Topline

Revenue from operations grew 20.7% YoY (₹97,359 Mn → ₹1,17,478 Mn), with Q4 FY26 alone up 19.3% YoY (₹29,148 Mn → ₹34,764 Mn) — demand remains structurally robust.
Cables & Wires dominates at 95.5% of FY26 revenue (₹1,12,206 Mn, +22.3% YoY), absorbing the EPC contraction entirely.
EPC revenue fell 14.4% YoY (₹6,562 Mn → ₹5,614 Mn), a deliberate mix-shift toward higher-margin wires business.

Bottomline

PAT surged 31.9% YoY (₹6,964 Mn → ₹9,184 Mn), outpacing revenue growth by ~11 pp — operating leverage is materialising.
Q4 FY26 PAT of ₹2,843 Mn grew 25.5% YoY (vs. ₹2,265 Mn), with sequential improvement of 21.1% over Q3 FY26 — momentum is accelerating.
Effective tax rate remained stable at ~25.5% (FY26: ₹3,139 Mn on ₹12,323 Mn PBT), providing no distortion to earnings quality.

Margins

EBIT margin (using KPI-stated EBIT of ₹12,964 Mn on revenue of ₹1,17,478 Mn): 11.0% in FY26 vs. 10.2% in FY25 (+80 bps) — a clean expansion.
PAT margin expanded to 7.8% in FY26 (₹9,184 Mn ÷ ₹1,17,478 Mn) from 7.2% in FY25 (₹6,964 Mn ÷ ₹97,359 Mn) — +60 bps.
Finance costs (₹641 Mn) remain well-contained at 0.55% of revenue despite rising capex, reflecting the net cash balance sheet.

Growth Trajectory

Basic EPS grew 27.0% YoY (₹75.65 → ₹96.09) on a near-stable share count — value per share is compounding ahead of book value.
Cables & Wires segment profit grew 33.5% YoY (₹9,749 Mn → ₹13,014 Mn), while EPC profit collapsed 68.0% (₹608 Mn → ₹194 Mn) — the portfolio is self-correcting toward quality.
Total equity grew 15.2% YoY (₹57,858 Mn → ₹66,649 Mn) organically, signalling retained earnings as the primary growth engine post-QIP.

RRKABEL – R R Kabel – Q4 FY26 Financial Results – 30-Apr-26

RR Kabel’s FY26 delivered 27.6% revenue and 58% PAT growth with margin gains, debt‑free balance sheet, and self‑funded capex. Yet a ₹75,967 Lakhs inventory surge crushed FCF and halved cash. FY27 hinges on inventory normalization and FMEG breakeven for re‑rating.

1–2 minutes

🔍 Observations

Topline

Revenue surged 27.6% YoY to ₹9,72,236 Lakhs in FY26, crossing the ₹9,700 Cr mark — driven almost entirely by Wires & Cables, which grew 31.0% to ₹8,76,374 Lakhs.
Q4 FY26 revenue of ₹2,53,586 Lakhs declined 14.5% QoQ from Q3’s ₹2,96,414 Lakhs — a seasonal dip, though Q4 still posted 14.3% YoY growth over Q4 FY25.
FMEG segment grew a muted 3.1% YoY (₹92,959 → ₹95,862 Lakhs), losing revenue mix share from 12.2% to 9.9% as W&C outpaced it decisively.

Bottomline

PAT jumped 58.0% YoY to ₹49,222 Lakhs (FY25: ₹31,161 Lakhs), outpacing revenue growth — signalling meaningful operating leverage.
Q4 FY26 PAT of ₹11,825 Lakhs was dragged by a ₹1,901 Lakhs exceptional charge (new labour codes). Ex-exceptional, Q4 PBT would have been ₹17,779 Lakhs vs. ₹17,318 Lakhs in Q4 FY25 — a modest 2.7% YoY normalised growth.
Basic EPS rose 57.8% YoY to ₹43.53 (FY25: ₹27.58), with share count virtually unchanged — all gains flow from earnings improvement.

Margins

EBITDA (PBT + Finance costs + D&A): FY26 = ₹65,902 + ₹7,526 + ₹9,226 = ₹82,654 Lakhs; FY25 = ₹40,945 + ₹5,890 + ₹7,050 = ₹53,885 Lakhs. EBITDA margin expanded 147 bps to 8.5% on ₹9,72,236 Lakhs revenue.
PAT margin widened 100 bps to 5.1% (FY25: 4.1%) — impressive for a commodity-linked business with inherently thin margins.
Material costs as % of revenue: FY26 = (₹8,22,158 + ₹46,001 − ₹74,934) / ₹9,72,236 = 81.7% vs. FY25 = (₹5,83,676 + ₹49,533 − ₹7,714) / ₹7,61,823 = 82.2% — a 50 bps input cost efficiency gain.

Growth Trajectory

Revenue CAGR over two years implied by FY24 base would require FY24 data; on a single-year basis, 27.6% topline + 58% PAT growth is exceptional for an industrial compounder.
W&C segment PBT grew 56.2% YoY (₹49,648 → ₹77,562 Lakhs) — volume, mix, and copper price tailwinds all likely at play.
FMEG losses narrowed from ₹4,591 Lakhs to ₹3,303 Lakhs (28.1% improvement) — still loss-making but trajectory is positive.

FINCABLES – Q3 FY26 Earnings Call – 12-Feb-26

FINCABLES’ topline growth hinges on solar/fiber structural demand and government program execution, while margins face cyclical copper risks and structural competition—expect 11–12% EBIT as the new normal. Bottomline resilience depends on cash flow discipline and auto/solar capacity utilization.

1–2 minutes

3-Scenario Framework

📊 Base Case (50% Probability)

Key Variables: Copper stabilizes at 13,500 INR, fiber demand sustains, gradual Birla ramp-up.

Topline: 15–18% YoY growth driven by solar/fiber; OFC revenue hits INR 500–600 crore.
Margins: 11–12% EBIT as auto/solar volumes offset wire compression.
Cash Flow: FCF INR 200–250 crore, supporting reinvestment in E-Beam/auto capacity.

RRKABEL – Q3 FY26 Earnings Call – 2-Feb-26

RRKABEL rides industry tailwinds with 15–17% growth potential, margin expansion to 10.5% by FY28, and wire & cable dominance. Execution risks, FMEG turnaround, and B2B scaling remain key swing factors shaping profitability.

1–2 minutes

3-Scenario Framework

📊 Base Case (50% Probability)

Commodity prices stabilize; RR Kabel executes phased capex and achieves 18% volume growth. FMEG turns EBIT-positive in Q4 FY26, and export momentum continues. Outcome: Revenue grows 15–17%, EBITDA margins expand 100 bps annually to 10.5% by FY28. Key variable: Copper averages $11,000–12,000/ton; EU tariff benefit materializes in FY27.