Any current/future new fundraising through debt or equity?

The company raised Rs. 97 crores through preference shares recently. As of June 30, around Rs. 71 crores of these funds have been utilized, primarily for working capital and Rs. 19 crores for CAPEX. The CAPEX for the new plant is about Rs. 35 crores, funded through internal accruals. The company expects to be free from all long-term debt by the end of the year; only working capital debt will remain. There is no mention of any immediate or planned future fundraising through additional debt or equity beyond these points.

Any current/future capex/capital investment/strategic investment?

Current CAPEX: A new plant with a total CAPEX of around Rs. 35 crores is being commissioned in H2 FY '25. New plant details: The plant focuses on HV cables, solar cables (including E-beam facility), and AL59 conductors. Revenue potential: Expected peak revenue from this new capacity is approximately 6x to 7x of the investment (around Rs. 200-250 crores). Land availability: New land of around 15,000 square meters purchased last year near existing plants for future CAPEX. Expansion potential: The 35,000 sq. meters plant area has 10,000-15,000 sq. meters still available for further CAPEX. Timelin

Future growth expectations in sales/revenue/volumes?

Dynamic Cables achieved a 28% volume growth in the latest quarter. The company aims to grow at 1.5x the industry growth rate, targeting around 25% revenue growth versus industry’s 15%-20%. Maximum monthly sales from current capacity reached Rs. 125 crores (March 2025), indicating potential annualized revenue of Rs. 1,500 crores. Optimum capacity utilization expected at 80%-90%. New plant commissioned with Rs. 35 crores CAPEX, expecting incremental revenue of Rs. 200-250 crores, to be ramped up by FY '26/FY '27. Continuous debottlenecking exercises are underway to enhance current plant capacity

Future growth expectations in earnings/operating earnings/profits/EPS?

The company reported a 26% year-on-year revenue growth and a 23% increase in operating profit in Q1 FY '26, indicating strong core operations and cost discipline. Operating margin is expected to remain stable around 10% to 10.5% in the near term. Profit after tax grew by 57% in Q1 FY '26, reflecting earnings strength. The company expects to ramp up new plant capacity (with incremental revenue potential of Rs. 200-250 crores) by FY '26 or FY '27. Optimum capacity utilization is around 80-90%, with current capacity enabling about Rs. 1,150-1,200 crores revenue annually; new plants and debottlene

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Dynamic Cables LtdQ2 FY25Industrial Products

Dynamic Cables Ltd Q2 FY25 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹370P/E: 17.7Market Cap: ₹1.5K CrSector: Industrial Products

Management growth scorecard

Revenue

Category 2

Margin

Category 3

Fundraise

Order

Yes

Capex

Yes

2 of 5 growth signals are positive.

Full analysis

Revenue guidance

Category 2

→Dynamic Cables achieved a 28% volume growth in the latest quarter.
→The company aims to grow at 1.5x the industry growth rate, targeting around 25% revenue growth versus industry’s 15%-20%.
→Maximum monthly sales from current capacity reached Rs. 125 crores (March 2025), indicating potential annualized revenue of Rs. 1,500 crores.
→Optimum capacity utilization expected at 80%-90%.
→New plant commissioned with Rs. 35 crores CAPEX, expecting incremental revenue of Rs. 200-250 crores, to be ramped up by FY '26/FY '27.
→Continuous debottlenecking exercises are underway to enhance current plant capacity.
→Solar cable market (a key growth segment) TAM estimated at Rs. 6,000-7,000 crores and expanding rapidly.
→Expects to enter US market with sales expected to start by end FY '26 or early FY '27.
→Target EBITDA margin maintained at 10%-10.5% in near term.

Margin guidance

Category 3

→The company reported a 26% year-on-year revenue growth and a 23% increase in operating profit in Q1 FY '26, indicating strong core operations and cost discipline.
→Operating margin is expected to remain stable around 10% to 10.5% in the near term.
→Profit after tax grew by 57% in Q1 FY '26, reflecting earnings strength.
→The company expects to ramp up new plant capacity (with incremental revenue potential of Rs. 200-250 crores) by FY '26 or FY '27.
→Optimum capacity utilization is around 80-90%, with current capacity enabling about Rs. 1,150-1,200 crores revenue annually; new plants and debottlenecking exercises would support further growth.
→Export sales (currently ~15% order book) and approvals in the U.S. market are expected to contribute to growth starting FY '26-end or FY '27.
→Overall, the business outlook suggests sustainable revenue and operating profit growth in medium term with stable margins.

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Fundraise plans

→The company raised Rs. 97 crores through preference shares recently.
→As of June 30, around Rs. 71 crores of these funds have been utilized, primarily for working capital and Rs. 19 crores for CAPEX.
→The CAPEX for the new plant is about Rs. 35 crores, funded through internal accruals.
→The company expects to be free from all long-term debt by the end of the year; only working capital debt will remain.
→There is no mention of any immediate or planned future fundraising through additional debt or equity beyond these points.

Order book

Yes

- Current order book: Rs. 734 crores (Q1 FY '26), up 57% year-on-year. - Order execution visibility: Orders generally have a 6 to 9 months execution timeline. - Order book breakup: 62% from power distribution, 15% exports, 12% government entities, and 11% from solar. - Export order book: Around 15%, mainly Asia and Africa; U.S. market entry expected end of FY '26 or FY '27 after approvals. - Management indicates healthy order book growth and strong future sales outlook. - Optimum capacity utilization expected at 80% to 90%, with peak revenue capacity from current plants around Rs. 1,150-1,200 crores annually. - Unutilized capacity may exist if delivery schedules are deferred by customers. This reflects a strong order book position with steady growth and diversification across domestic and export markets.

Capex plans

Yes

→Current CAPEX: A new plant with a total CAPEX of around Rs. 35 crores is being commissioned in H2 FY '25.
→New plant details: The plant focuses on HV cables, solar cables (including E-beam facility), and AL59 conductors.
→Revenue potential: Expected peak revenue from this new capacity is approximately 6x to 7x of the investment (around Rs. 200-250 crores).
→Land availability: New land of around 15,000 square meters purchased last year near existing plants for future CAPEX.
→Expansion potential: The 35,000 sq. meters plant area has 10,000-15,000 sq. meters still available for further CAPEX.
→Timeline for future CAPEX: New projects typically take 9 months to 1.5 years to commercialize depending on cable type.
→Strategic investments: Currently no plans for backward integration or other strategic tie-ups.
→CAPEX funding: Planned CAPEX to be funded through internal accruals; long-term debt expected to be cleared by year-end.

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