Prime Cable Industries: Connecting to Growth with a Strong H1 FY26 Performance

Prime Cable Industries Limited has reported a strong financial performance for the first half of fiscal year 2026 (H1 FY26), demonstrating robust growth across key metrics. The company, a significant player in the cable and wire manufacturing sector, saw its revenue from operations surge by an impressive 61.86% year-on-year, reaching INR 90.71 crores. This top-line expansion was complemented by even stronger bottom-line growth, with Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) increasing by 84.44% to INR 9.72 crores. Profit After Tax (PAT) more than doubled, climbing 122.94% to INR 5.48 crores. This performance highlights the company's operational efficiency and its ability to capitalize on market demand.

The growth was primarily fueled by robust demand from government and infrastructure projects, alongside increasing traction from private sector clients. The company's strategic diversification efforts are evident in its revenue mix, with government and PSU-linked projects contributing 53.5% and private corporate sales expanding to 46.5%. This balanced approach reduces reliance on a single client segment, providing greater stability. Furthermore, the company maintained a healthy order book of INR 106 crores, offering strong revenue visibility for the next four to five months.

Strategic Expansion and Product Diversification

Prime Cable Industries is actively pursuing strategic initiatives to sustain its growth trajectory. A significant development is the planned capital expenditure of INR 150 crores to enhance capacity for medium voltage cables. This expansion is slated for commissioning by Q2 of the next financial year, with an anticipated utilization rate of 30-40% by the end of that year. This move is critical for tapping into the burgeoning energy sector, which requires higher voltage cables for transmission and distribution.

In a bid to further diversify its product portfolio and align with national priorities, the company is set to introduce solar cables. This new product line is expected to be launched by the end of the current month or by mid-December. The solar power generation industry presents a massive opportunity, and this addition will enable Prime Cable Industries to cater to a new segment of clients, strengthening its position in the renewable energy market. The company also continues to expand its geographical footprint by seeking vendor approvals in additional states across India, aiming to increase its presence beyond the current 15 states.

Operational Excellence and Market Positioning

The company's operational efficiency is underpinned by its Ghiloth manufacturing unit, which commenced production of control and power cables in 2024. This unit boasts an NABL certified in-house testing lab, ensuring stringent quality control and product reliability. This certification not only enhances customer trust but also reinforces the company's commitment to delivering high-quality products. The company's capacity utilization is also on an upward trend, projected to reach 60-65% by March 31st and over 80% by the next financial year, indicating efficient asset utilization.

Prime Cable Industries' comprehensive product range, including control cables, power cables, aerial bunch cables, instrumentation cables, and housing/building wires, caters to diverse industrial demands. The company's strategic positioning across India's power transmission and distribution ecosystem allows it to serve various segments, from generation to consumption. This broad market exposure, coupled with ongoing expansion and product diversification, positions Prime Cable Industries for sustained growth in the dynamic Indian market.

Outlook and Investor Confidence

Management expressed confidence in maintaining the H2 momentum, supported by the healthy order book and strategic initiatives. The focus remains on sustaining double-digit EBITDA margins, improving working capital efficiency, and executing the robust order book. The planned expansions and new product launches are expected to further strengthen the company's market position and drive future revenue growth. Prime Cable Industries is not just responding to market demand but proactively shaping its future through disciplined capital allocation and strategic diversification, fostering investor confidence in its long-term prospects.