Dynamic Cables Q1: standalone PAT +37% YoY to ₹24.95 Cr, margins expand past 10.5%
PAT +37% YoY · revenue +33.2% · margins expanding · inline vs street
₹349.1 Cr
+33.2% YoY
₹24.95 Cr
+37% YoY
7.12%
+0.2pp YoY
₹5.15
Dynamic Cables opened FY27 with a strong standalone print: revenue from operations rose 33.2% YoY to ₹349.10 Cr and net profit climbed 37.0% YoY to ₹24.95 Cr (EPS ₹5.15, bonus-adjusted), with net margin widening to ~7.1% from 6.9% a year ago. Crucially, EBITDA margin came in near ~10.9% — above the 10.5% baseline analysts flagged as the key thing to watch and inside management's own guided 10.5–11% band — so the beat is profit-led, not just topline. There are no exceptional items on either side, so the reported and adjusted YoY growth are the same; this is clean, underlying growth. The sequential dip (revenue −1.8% QoQ, PAT +3.2% QoQ) is the expected seasonality — management has guided that H2 FY27 is the stronger half, so a softer June quarter versus the audited March quarter is not a red flag.
Q1 FY-2027 vs prior quarters
Against its own framework the quarter tracks ahead: management reiterated 18–20% annual revenue growth on the last call, and +33% YoY in Q1 sits well above that, while margins held in the guided range. Street had no published PAT number for a company this size, but the qualitative bar — EBITDA holding above 10.5%, order execution intact — was cleared; the ₹808 Cr order book flagged going into the print underpins visibility. The board also declared a final dividend (record date July 10) and refreshed the board/marketing leadership during the quarter — governance housekeeping rather than anything that moves the numbers. The one checkpoint the result does NOT yet answer is the delayed greenfield capacity, which management pegged to commence by September 2026 and called critical for the seasonally stronger second half.
The stock went into the print at ₹405, up 9.9% over the past month of trading.
For context: this is the highest quarterly PAT in the last 6 quarters on our records; PAT has now risen for 4 consecutive quarters.
What the summary numbers don't show
Unaudited, limited review by A Bafna & Co with unmodified conclusion — single business segment
Management reiterates its medium to long-term revenue growth guidance of 18-20% annually, supported by a strategic shift towards higher-margin core products. The delayed greenfield capacity expansion is now expected to commence operations by September 2026, which is critical for achieving growth in the seasonally stron
— This quarter: beat
What to watch
W1
Reengus greenfield capacity: management guided commencement by September 2026, called critical for seasonally stronger H2 FY27
W2
EBITDA margin sustaining in the guided 10.5–11% band as mix shifts to higher-margin core products, solar cables and HV conductors
W3
Order-book conversion from the ₹808 Cr backlog into H2 revenue to validate the 18–20% annual growth guidance
Standalone only; no consolidated statement filed. Source in Lakhs, converted to Cr (÷100). No exceptional items either period. Tax = current 877.36L + deferred (26.41)L = 850.95L. EPS restated for 1:1 bonus (Jul 2025) across all periods. Clean arithmetic.
Record revenue masked by thin volume growth and order weakness
The verdict, the claims that held up, the sharpest analyst exchanges, and the risks — the earnings call, decoded from the transcript.
Hold
confidence 7/10
Grade B
Met 10.5-11% OPM guide; PAT/revenue aligned with delivered. Missed implied volume growth expectation (5-6% vs historical 15-25%+). Order book growth lag vs revenue growth suggests execution headwind.
Cautiously Optimistic
next 1–2 quarters
Optimistic
multi-year
Q1 delivered headline beats (₹349.1 Cr revenue, ₹25 Cr PAT, both +33-37% YoY) but only 5-6% volume growth—rest driven by aluminum price inflation, now reversing. Order book grew only 10% YoY despite 33% revenue, signaling customer hesitation and front-loaded bookings. Margin (10.9%) stable but pricing power tested; customers taking only near-term contracts. Long-term guidance (18-20% growth) backed by Sept 2026 capacity expansion but lacks near-term momentum.
₹349.1 Cr
Revenue · +33.2% YoY₹25 Cr
Reported PAT · +37% YoYFlat
Margins · vs guidance: MixedDid the claims hold up?
33% YoY revenue growth to highest ever Q1
METDelivered ₹349.1 Cr, 33.2% YoY; confirmed against FY26 Q1 base
10.9% EBITDA margin reflecting improved operational efficiency
METDelivered 10.9% OPM; within prior guidance of 10.5-11%
37% PAT growth despite strong demand
METDelivered 37.0% YoY, ₹25.0 Cr; corroborates call narrative
Healthy order pipeline with ₹811 Cr order book
OVERSTATEDOrder book only 10% YoY growth (implies ~₹738 Cr prior Q1); weak given 33% revenue growth
Volume growth similar to historical pace
MISSManagement admits only 5-6% volume growth; balance 27-28% from aluminum price inflation
Sustained demand across government and private sectors
OVERSTATEDQ1 was pricing-driven; customers postponing orders (Apr-May weakness); only near-term contracts being booked
Earnings quality
What changed since the last call
Order book momentum weakened
DowngradeOrder book only ₹811 Cr (+10% YoY); prior calls assumed order book supporting 15-20%+ revenue CAGR; now clearly lagging at +10%.
Volume growth cratered
DowngradeQ1 volume ~5-6%; prior call base (last Q1 ~25-26% volume growth) shows sharp deceleration; pricing now the only lever.
US market entry achieved
NewUS started Q1 (15% of exports = ~₹45 Cr revenue annualized); distribution-led model; first orders placed, reordering pending.
Capacity expansion on track
NeutralSept 2026 commissioning confirmed (was 'delayed'); now inline with prior guidance.
Fixed price contracts only 20%
Neutral80% variable pricing; limited pricing power when costs fall; margin compression risk if aluminum prices decline.
The Q&A
Analysts probed order book weakness (only 10% YoY despite 33% revenue); management blamed April–May pricing shock and customer reluctance to lock long-term at high prices. Questioned capacity rationale (85% utilization, new plant still 6+ months away); management defended via asset turnover model (6-7x) and internal expansion potential. Skepticism on data center/HTLS/EV timelines; management candid about nascent stage and dependency on customer pull.
Raw material volatility & margin protection — Sucrit D. Patil, Eyesight Fintrade
AnsweredVariable price contracts pass volatility to customers; fixed price contracts include raw material booking at order time; 4x working capital turnover maintained through credit ratings.
Volume vs price growth split — Piyush Sevaldasani, Sundaram Alternates
Answered5-6% volume growth; balance derived from aluminum price inflation. High base effect from prior Q1 (25-26% volume) and April-May order postponement.
Order book weakness — Piyush Sevaldasani, Sundaram Alternates
PartialApril-May saw reluctance to book at elevated prices; customers waiting for price correction; industry-wide phenomenon, not Dynamic-specific.
Capacity expansion timeline — Piyush Sevaldasani, Sundaram Alternates
AnsweredDelays now behind; on track for September 2026 commissioning.
US market entry & realization — Vidit Trivedi, Asian Market Securities
AnsweredUS started Q1, ~15% of exports. Distribution-led model; first shipments dispatched; reordering pending. Traditionally exported to Asia/Africa/Middle East.
US market outlook & margins — Nitin Jain, Fair Value Equity Advisory
AnsweredEarly stage; first shipments being consumed; margins initially similar to domestic, upside as foothold established. Long-term huge opportunity.
Order book & contract mix — Nitin Jain, Fair Value Equity Advisory
AnsweredOrder cycle shortened, not dispatch impacted. ~20% fixed price; 80% variable. Customers not booking far-fetched orders at high prices.
Solar segment guidance — Kedar M Lepaxy, Global Consilient Research
Answered20% in Q1; expect similar for H1 FY27. H2 may increase slightly with new plant; more notable next year.
Debt & inventory — Sonal Minhas, Prescient Capital
AnsweredInventory value up 20-30% due to higher raw material costs (volume same, value higher). Debtors stable on last-6-months basis.
Competitor risk (Adani/Birla) — Gaurav Gandhi, Glorytail Capital
PartialApproval process long; few players have required certifications. Birla focused on house wire, not power cables. Adani still unclear; order flow not yet impacted.
New plant revenue contribution — Jigar Jani, Nuvama PCG Research
AnsweredMeaningful contribution from Q4 only. Ramp to 80-85% utilization over 12-18 months post-September.
Data center & HTLS opportunity — Kaustav Bubna, Kamana Holdings
PartialFuturistic plays; very large market. In product development. Most capex fungible; key focus is customer engagement & product approvals. Competition global (local + Mexico/Turkey/India/China).
Price elasticity long-term — Rushit Shukla, Nexus Equity Growth
PartialRaw material prices unpredictable. Target long-term 18-20% growth; some quarters high due to price/volume, others moderate. Overall trajectory maintained.
Pricing competition & margins — Neha Garg, ZenFlow Finance
AnsweredLot of expansion by all players; demand picking up pace in tandem. Competition healthy so far. Secular growth play in T&D.
Capacity utilization & E-beam — Kavina Desai, Skyridge Wealth
AnsweredExisting plants at ~85% utilization (optimal). E-beam is new setup in new plant only.
House wire diversification rationale — Khadija Mantri, Capri Global
AnsweredBuilding wire B2B segment only (not B2C distribution). Complementary to power cable segment. Not entering low-margin B2C space.
Order booking depth — Nitin Jain, Fair Value Equity Advisory (follow-up)
AnsweredPrice is king. Customers unwilling to lock orders for Q3 execution at high prices. Only near-term (2-4 month) delivery orders being taken.
New plant ramp & utilization target — Nikhil Purohit, Fident Asset (follow-up)
PartialTarget 80-85% utilization by end FY28; very difficult to predict 18 months hence; dependent on market response.
Guidance
Long-term 18-20% annual growth maintained
MediumReiterated on call; no short-term target given. Q1 33% driven by pricing, not sustainable.
EBITDA margin 10.5-11% range to continue
HighQ1 delivered 10.9% (within range). Cost discipline and mix improvement supporting; no new margin expansion expected.
₹45 Cr greenfield plant capex; 6-7x asset turnover expected
HighSeptember 2026 commissioning; target 12-18 months to 80-85% utilization by FY28. Brownfield expansion scope within plant.
Risks the call surfaced
Commodity price volatility
High80% of revenue on variable-price contracts; aluminum/copper spikes inflate revenue but mask weak volume. If prices correct, revenue stalls while margin compressed.
Order book–revenue divergence
HighOrder book +10% YoY (₹811 Cr) but revenue +33% implies pull-forward and shortened order cycle. Customers postponing orders (Apr-May weakness) to wait for price correction.
New plant execution & ramp
Medium₹45 Cr capex; September 2026 target ambitious post-prior delays. Ramp to 80-85% by FY28 assumes sustained 15-20%+ growth. If order book stays weak, capacity underutilized.
Volume growth deceleration
MediumOnly 5-6% volume growth this quarter vs historical 15-25%+ CAGR. Prior Q1 had 25-26% volume growth (high base). New baseline unclear; sustainable growth at risk if pricing unwinds.
Competitive capacity expansion
MediumAll major cable players (fragmented market) expanding capacity in HV/EHV; healthy competition claimed now but risk of overcapacity/price war as supply doubles.
Management
Score 7/10. Clear on numbers; candid on headwinds (volume weak, order booking soft in Apr-May). Evasive on new product timelines (data centers, HTLS described as 'futuristic', 'nascent'); no concrete milestones. On track for capacity expansion (Sept 2026, was delayed); OPM stable (10.9% within 10.5-11% guide). Volume growth missed expectation (5-6% vs historical 15-25%+). Order book growth lagged revenue (10% vs 33%).
1 · Sep 2026
New greenfield plant commissioning; ₹45 Cr capex, expected 6-7x turnover
2 · Q4 FY27
First meaningful revenue from new plant; ramp-up to 80-85% by FY28
3 · Next 3-4y
Solar/renewable segment targeting 25-30% annual growth; new order traction
Long-term guidance (18-20% growth) backed by Sept 2026 capacity expansion but lacks near-term momentum.