US tariff recovery masks weak profit growth; capacity crunch limits near-term

Revenue +17.4% YoY solid, but PAT +6.5% YoY weak; NPM compressed to 3.7%

Operating margin +320 bps YoY but PAT growth lags revenue growth

Correct; exports ₹155 Cr vs ₹87 Cr Q4 FY26, though baseline was tariff-suppressed

Only 5.5% growth; export order book at ₹97 Cr remains small relative to shipment

Q1 run rate ₹155 Cr; 4x would be ₹620 Cr, so ₹700-800 requires acceleration

Q1 exports ₹155 Cr vs ₹87 Cr Q4 FY26 post-IEEPA resolution; normalization underway after tariff-suppressed prior period

FY25 EBITDA margin (8%) targeted by Q4 FY27 as stated in prior call; tracking on plan; current 7.1% (incl. other income)

₹30 Cr+ spent to date; ₹65 Cr earmarked from ₹122 Cr equity raise; no overruns flagged but timeline risk remains

Domestic B2B industrial grew 92% YoY to ₹296 Cr; power cables remain 57% of revenue, driven by infrastructure/grid investment

₹615 Cr vs ₹583 Cr (5.5% growth); exports orders only ₹97 Cr despite ₹155 Cr Q1 shipments; management deliberate but risky

Q1 is fully in line with expectations. 6.6% operating margin is meaningful progress. By end of FY27 (Q4), expect to achieve FY25 levels (8%). Drivers: US normalization, favorable power cable mix, exports at 29%+.

Most critical machinery ordered in advance, on schedule. Civil mobilization started. Major construction within 6-7 months on internal timeline. Expect partial Q1 FY28 operations. No major overruns expected, only normal variations.

₹30 Cr+ spent to date; from internal accruals and ₹122 Cr equity raise. No debt taken yet; targeting term loan later. Post-completion debt-equity below 0.3x.

₹1,200 Cr in FY29 expected at ~75% capacity utilization.

Deliberate. After tariff shock, we and distributors more cautious. Steady pipeline; no pressure to build large order book. Distributors now taking tariff pass-through, reducing risk. No bottleneck concerns. Confident of ₹700-800 Cr exports FY27 without large order book.

Till FY25, exports were 1.5% higher margin vs domestic. FY26 all changed; we had negative EBITDA on US exports due to tariffs. Now improving. Paramount can pivot fast; shown this twice. FY22: 22% exports; FY23: 50% (₹400 Cr); FY24: 26% as demand fell but domestic doubled. Will keep improving gradually. Not a margin downside risk.

Practically 100% throughout. Been investing continuously; every machine producing from day one. Problem is manufacturing not selling. Capacity constrained.

FY27 expect 15-20% roughly; existing plants up to the neck. Next year (post-Narmadapuram), much faster pace. Target ₹5,000 Cr by FY31; hope to better it. Historically grown 30%, 35%, 40% per year; problem always capacity.

Yes. Gradual improvement in US market. Domestic steady. Stabilization ongoing. By Q4 FY27, expect FY25 levels (8%).

Roughly 29,000 tons last year Q1. Q1 FY27 approximately 4% increase year-on-year.

Not largest player; competitors have reverse integration (making glass). High capex model. Data center boom is golden phase; we see demand and will participate. Some specific items we not yet doing. Our driver remains power cables and specialized conductors (HTLS). Already ₹100 Cr HTLS business in hand.

Till now exporting cables up to 600 volts; largest exporter from India to US. Now adding solar cables (higher than 600V), big market due to renewable investment. Some data center products held with approvals; fructifying into direct demand. Quality already has traction in US for 4-5 years.

Approved up to 66 KV. 132 KV will need production sample; approvals expected within 1 year, possibly 6-8 months. End of FY28 expect approvals; by FY29 should have all. Also exploring 220 KV, 400 KV.

₹1,200 Cr is initial 4x multiple expected. But 4x never actual; happens at 5.5x, 6x over time as small additions drive revenue. End of day, expect steady 5.5x, 6x multiples after Phase 2.

E-Beam definitely part of Phase 1 (₹300 Cr capex). Longer gestation product; higher barrier to entry; higher margin accretive. By end FY29 hope for most major certifications; major certs start 1 year after for defense, railways, shipbuilding niche.

₹155 Cr Q1 FY27; 4x would be ₹620 Cr but should do better. Expecting ₹700-800 Cr FY27. New products (solar) margins similar to current, may grow as demand strengthens.

Major competitors: South Korea, Vietnam, Cambodia. Egypt, Ecuador, Turkey emerging. Last year we worst hit: faced 25%+, 50%+ duty vs competitors at 10-18%. Had pipeline of orders finished in factory, 2 months at sea. Navigated through that.

No firm price orders beyond 3-4 months delivery. Book metal next working day after order. Practically zero risk in theory; reality some +/- happen. Variable price orders protected but variations occur. Do not take metal risk as policy for many years.

Targeting 90-100 days. Q1 at 96 days. Gradually expect to keep within that level. Receivables normalized to 64 days from 79 days end March.

Existing plants at 100% utilization; capacity constraint limits upside; Narmadapuram not yet ramping

Q1 ₹155 Cr run rate; tariff normalization confirmed; but small export order book warrants caution

Partial Q1 FY28 start targeted; 75% utilization assumed for FY29 target; construction/machinery timeline risk

Currently 7.1% incl. other income, 6.6% operating excl. other income; US recovery and power cable mix driving

Plan is in place but EHV ramp timeline uncertain; capacity utilization at 75% creates headroom for margin upside

₹30 Cr+ spent to date; ₹65 Cr from equity raise earmarked; internal accruals and term loan to follow

Currently 0.15x; net worth strengthened to ₹894 Cr from ₹778 Cr; comfortable trajectory

Greenfield facility in Madhya Pradesh; machinery on order with long lead times; civil construction started but subject to delays. Q1 FY28 partial ops target could slip to Q2 or later, pushing ₹500 Cr FY28 revenue out of reach.

Exports ₹155 Cr in Q1 but order book only ₹97 Cr; management deliberately keeping it small post-tariff shock to protect margins. If US demand slows or order cadence breaks, H2 FY27 export volume could retrace faster than domestic can offset.

IEEPA tariff invalidation by US Supreme Court is key driver of Q1 recovery; 29% of revenue now comes from exports to US. Any new tariff/trade friction could quickly erode margins and volumes (as demonstrated by FY26 negative EBITDA on US exports).

Existing plants (Dharuhera, Khushkhera) at ~100% utilization; cannot grow faster than 15-20% in FY27 until Narmadapuram adds capacity in FY28. Any market upside in H2 FY27 cannot be captured; risk of losing share to competitors or customers pivoting.

PAT grew only 6.5% YoY while revenue grew 17.4% YoY; NPM compressed to 3.7% from historical ~4.5-5%. Operating leverage not flowing to bottom line; suggests cost pressures, product mix headwinds, or one-off charges masking underlying earnings power.