Dynamic Cables Ltd Q4 FY26 Earnings Analysis

- Long-term revenue growth target is 18%-20% annually, consistent with past performance. - Management expects industry growth around 12%-13%, with the company aiming to grow at 1.5x industry rate (~18%-20%). - Volume growth is difficult to quantify quarterly but is expected to correlate with product mix; long-term growth remains optimistic. - Order book shows a steady increase (10% quarterly growth recently), indicating sustained demand. - New CAPEX of Rs.40-45 crores expected to add incremental annual turnover of Rs.250-260 crores, supporting revenue growth from FY26 end. - Expansion in solar cable business (currently 15%-20% of sales) projected to at least double in 3-4 years, contributing to revenue increase. - Opportunities in power distribution, renewable energy, data centers, and conductors are expected drivers of future growth. - Competition and tariff issues (e.g., US exports) may influence short-term growth; however, overall outlook remains positive.

- Long-term revenue growth is projected at 18%-20% annually, consistent with the company's historical trend. - Operating profit growth is expected to continue with improved operating leverage and better product mix; recent nine-month growth was 29%. - Sustainable EBITDA margins are targeted around 10%-11% for the B2B cable business. - Gross margins historically fluctuate around 20%, driven by sales mix; long-term sustainable margin expected to remain stable. - Incremental CAPEX of Rs.40-45 crores is expected to generate an additional turnover of around Rs.250 crores, supporting growth beyond FY26. - New product segments (solar DC cables, data center cables) and expansion into high growth verticals (renewable energy, power transmission) provide upside potential. - Earnings growth is optimistic, supported by order book stability (Rs.787 crores) and expanding private sector business (currently 78%). - Overall, management remains confident of sustaining growth momentum and long-term value creation for stakeholders.

- Dynamic Cables Limited is undertaking a Greenfield CAPEX of around Rs. 35-45 crores, expected to complete by the end of FY26. - This CAPEX is anticipated to add incremental revenue of approximately Rs. 250-260 crores annually, based on a 6x asset turnover ratio. - The current CAPEX will be exhausted by FY27 end or early FY28; additional CAPEX plans will be considered thereafter to sustain 18%-20% growth. - Optimum capacity utilization is expected around 80%-85%, and new CAPEX decisions will align with growth targets and asset turns. - The company will share detailed CAPEX plans once the current project is finished and new investments are decided. - The CAPEX supports product expansion into solar DC cables and data center cable development, targeting new growth verticals.

- The management did not provide a specific update on any new fundraising through debt or equity during the call. - They mentioned that the current CAPEX of around Rs. 40-45 crores is underway and will contribute incremental turnover, but no mention of external funding. - Future CAPEX plans beyond the current projects will be decided and shared once the existing CAPEX is completed. - No explicit discussion around raising new debt or equity funding was made in the transcript. - The company appears to be focused on organic growth funded through operational cash flows and internal accruals at this stage.

- As of December 31, 2025, the order book stands at Rs. 787 crores, showing a 10% quarter-on-quarter growth. - The order book has grown from around Rs. 450-500 crores three years ago to Rs. 700-800 crores currently. - Capacity constraints influence the order book size; it is maintained in line with deliverable capacity. - Capacity utilization is around 75%-80%. - With the completion of new CAPEX by March 2026, management aims to increase the order book further, potentially targeting around Rs. 1000 crores by March or June 2026. - Order wins have accelerated post-monsoon, supporting order book growth. - The company focuses on absorbing increased capacity efficiently to grow the order book. - Q4 experiences higher dispatches due to seasonality with government projects.