Prime Cable Industries Limited Q1 FY27 Earnings Analysis

- The company aims for robust revenue growth of 40% to 50% year-on-year for FY '27 and FY '28. - Expansion into medium-voltage cables is expected to significantly enhance revenues, with the new Ghiloth facility planned to add capacity of INR 250 crores by Q1 FY '28. - Utilisation of manufacturing capacity is projected to reach peak levels gradually during FY '28, achieving approximately 85% utilisation within 4-5 months after Q1 FY '28. - Revenue growth in the past four years (from INR 54 crores in FY '22 to INR 235 crores) driven by expanded approvals across 18 states and higher utilisation of expanded manufacturing capacity. - The company is focused on maintaining a 4-6 month order book to mitigate margin erosion due to raw material price changes. - Future volume growth aligns with capacity expansions and increased approvals in new geographies and product segments.

- **Revenue Growth:** Targeting 40%-50% year-on-year growth for FY '27 and FY '28, driven by capacity expansion and stronger execution. - **EBITDA Margins:** Expected to remain stable around 10%-11% in FY '27, with potential to improve to 12.5%-13% as medium-voltage (MV) cable contribution increases. - **Medium Voltage Segment:** New MV facility coming online by Q1 FY '28, projecting INR 250 crore capacity at 85% utilisation, which should enhance margins (~13% EBITDA in MV segment). - **Operating Efficiency:** Margins improved from 5% to 10%-12% due to economies of scale; company aims to maintain or improve operational efficiency. - **Profit After Tax:** Demonstrated strong growth with 38% YoY increase in H2 FY '26; further growth expected with higher utilisation and better product mix. - **EPS:** Growth aligned with revenue and margin expansion; no explicit EPS figures provided but implied upside with improved profitability.

- The company is executing a capacity expansion plan at its Ghiloth, Rajasthan facility focused on medium-voltage cables, expected to be operational by Q2 FY '27 with gradual ramp-up through FY '27 and FY '28. - Planned capex includes approximately INR 40+ crores, with INR 25 crores to be spent in H1 FY '27 and the balance by Q1 FY '28. - This expansion will add about INR 150 crores of annual revenue capacity at 85% utilization initially, with an additional capacity of INR 100 crores planned adjacent to the new plant by Q1 FY '28. - Total installed revenue capacity is projected to exceed INR 600 crores by FY '28 Q1, based on current raw metal prices. - Future growth investments will primarily be funded through internal accruals and debt, aiming to minimize equity dilution. - Additional capex of around INR 15 crores is planned by Q1 FY '28 for further capacity enhancement on existing land parcels.

- There is no mention of any current or planned new fundraising through debt or equity in the provided transcript. - The company discussed past expenses related to fundraising and public market readiness initiatives (including IPO evaluation and capital advisory), which were multi-year and not expected to recur. - Total debt as of March 31, 2026, stood at INR 51.5 crores, with net debt at INR 38.6 crores. No new debt raises were indicated. - Capex plans of around INR 40-odd crores are to be funded from existing resources, including IPO proceeds already deployed. - No explicit references to future fundraising activities through either debt or equity were made during the call.

- As of May 2026, Prime Cable Industries has an order book of approximately INR 190-191 crores planned over the next 4 to 6 months. - Order book mix: 40-45% EPC orders and 50-55% tender-based government orders. - About 25% of the order book pertains to medium voltage cables; rest are low-voltage products. - The company aims to maintain a lean order book of 4 to 6 months to avoid margin pressure from raw material price fluctuations. - Current bid-win ratio stands at 25-30%. - The tender pipeline targets INR 1500 crores worth of tenders to achieve an order book target around INR 300-350 crores. - Focus remains pan-India across sectors such as power T&D, generation, oil & gas, mining, and steel. - Production for new facilities expected to start by H2 FY '27, gradually increasing capacity utilisation.