Delton Cables FY26: EPC-led growth offsets a tougher margin quarter

Delton Cables Limited closed FY26 with strong top line momentum, driven by an increasing focus on large private EPC customers and a broader low-voltage product portfolio. For the year ended March 31, 2026, revenue rose to ₹ 9,863.8 million, up 39.07 percent over FY25. Q4 FY26 was even stronger on sales, with revenue of ₹ 3,203.1 million, up 58.4 percent year on year.

But the quarter also showed the trade-offs of fast growth in a volatile cost environment. Q4 FY26 EBITDA came in at ₹ 153.7 million versus ₹ 162.5 million in Q4 FY25, while EBITDA margin fell to 4.8 percent from 8.1 percent. For FY26, EBITDA increased to ₹ 663.8 million, and the EBITDA margin was 6.73 percent, which the company described as lower than expected due to higher and volatile input costs and supply chain disruptions linked to geopolitical tensions.

FY26 mix: EPC expands, railways deliberately reduced

Delton’s FY26 revenue mix highlights the scale of its pivot. Management stated that EPC, railways, and telecom and other segments contributed 52 percent, 28 percent, and 19 percent respectively during FY26. The company also noted that the EPC segment grew by 87 percent, while the railways segment de-grew by 21 percent. Importantly, the railways de-growth was attributed to a conscious decision to reduce its contribution because of a lower margin profile.

This commentary frames Delton’s execution as a mix and customer quality strategy rather than a pure demand story. The presentation also positions the company as a customised branded supplier for higher growth sectors like railways, EPC, telecom, and smart metering, building on its long-standing brand recall in telecom cables.

Note: Revenue and P&L table values are presented in the investor presentation as INR million. Adjusted PAT is stated as adjusted for exceptional income.

Working capital discipline becomes a key execution theme

One of the more concrete operating improvements presented is the reduction in working capital intensity over the last few years. Delton stated that working capital days improved to 74 in FY26 from 218 in FY22, and that cash conversion cycle improved to 51 days in FY26 from 214 days in FY22.

The levers described are operationally specific: reducing SKUs and rationalising inventories, shifting the customer mix away from public sector clients toward high-rated EPC players, and increasing direct sales to customers. The company also sets an explicit internal target, stating it aims to maintain its working capital cycle below 75 to 80 days.

This matters because Delton is in a working-capital heavy industry where a growing order book can translate into higher inventory and receivables. By showing a multi-year improvement trend and stating a target band, the company positions working capital management as part of its transformation rather than a one-off improvement.

Order book, exports, and a balance sheet reset

As of March 31, 2026, Delton reported an order book of ₹ 5,130 million, with 90 percent comprising EPC orders. This reinforces the central role of EPC in the near-term revenue trajectory.

The company also highlighted a sharp increase in exports during FY26, reporting exports of ₹ 140 million compared with ₹ 7 million in FY25. While exports remain small relative to the overall revenue base, the increase signals an attempt to diversify the revenue pool.

The most visible balance sheet event in FY26 is the revaluation of land. Delton stated that it revalued land holdings from ₹ 0.78 million to ₹ 2,401.3 million under a revised accounting policy aligned with Ind AS fair value principles. The company said the revaluation surplus was credited directly to reserves, with no profit and loss impact and no immediate tax outgo. It also claimed that book value per share increased from ₹ 105 in FY25 to ₹ 397 in FY26.

This change increases reported net worth and can improve collateral strength and borrowing capacity, but it is not an operating cash driver. Investors typically need to separate this accounting uplift from the underlying profitability and cash conversion trends.

Strategy posture: asset light capacity addition and sector expansion

The presentation describes an asset light approach to growth, centred on sweating assets and installing machinery in leased facilities to improve productivity, aiming for an OPEX model rather than a CAPEX heavy approach. The deck also mentions a phased capex plan and includes asset turnover and capacity utilisation references, along with a note on the impact of land revaluation.

On market positioning, Delton emphasizes a low-voltage focus and highlights sector tailwinds in India’s infrastructure, railways, and telecom modernization. The company also states it is increasing approvals, especially in the power cables segment, and entering new sectors such as nuclear, defense, water and smart metering. In telecom, it points to structured cabling solutions as an adjacency linked to brand recall.

The operating outcome investors will likely track is whether Delton can maintain its revenue growth while improving margin resilience, especially as it shifts the segment mix and increases exposure to large EPC projects.

Takeaways for investors from FY26

FY26 establishes that Delton’s transformation is producing meaningful scale, with revenue nearing ₹ 9.9 billion and an EPC-led mix. Working capital improvement is a standout execution metric, and the reported order book provides visibility, albeit heavily concentrated in EPC.

At the same time, Q4 FY26 shows that profitability can compress quickly when input costs turn volatile and supply chains become disrupted. The FY26 margin commentary and the rise in finance costs underscore that growth has to be paired with tighter cost control and balance sheet discipline.

The land revaluation is a major balance sheet event that lifts book value and reported net worth, but the core investment question remains operational: whether Delton can translate its sector focus, approvals, and asset light capacity strategy into steadier margins and higher quality earnings through the next cycle.