Delton Cables Q1 FY27: Record first quarter built on EPC led growth

Delton Cables reported its strongest ever first quarter for revenue, operating profit, and profit after tax in Q1 FY27. Revenue rose to ₹ 2,863.6 million from ₹ 1,563.3 million in Q1 FY26, a year on year increase of 83.2%. EBITDA increased to ₹ 254.3 million from ₹ 137.0 million, up 85.6%, while EBITDA margin remained broadly stable at 8.88% versus 8.76% a year ago. Profit after tax rose to ₹ 75.9 million from ₹ 30.8 million, up 146.2%. The company also reported EPS of ₹ 8.79 compared with ₹ 3.57 in Q1 FY26.

The quarter’s growth was driven primarily by the EPC segment, with additional contributions from railways, telecom, and other segments. In management’s commentary, Q1 FY27 was positioned as a continuation of the company’s multi year transformation toward a more diversified, approval heavy, low voltage cable business with a sharper focus on private sector EPC customers.

Segment mix and the shape of demand

Delton disclosed a segment contribution mix for Q1 FY27 that highlights the company’s present revenue engine. EPC contributed 50% of quarterly revenue, railways contributed 19%, telecom contributed 9%, and other segments contributed 21%. The company stated that EPC segment revenue grew 80% year on year and the railways segment grew 15%.

A key supporting indicator is the order book. As of June 30, 2026, Delton’s total order book stood at ₹ 4,182 million, with 88% of the order book comprising EPC orders. The company also stated that the order book equals 1.5 times Q1 FY27 revenue, suggesting near term visibility even as the mix remains concentrated toward EPC.

The demand drivers referenced in the presentation are tied to broader infrastructure and formalisation trends. These include power transmission and distribution and renewables, railway electrification, and telecom fibreisation and data centre growth. Delton also highlighted the role of mandatory BIS certification in shifting share toward organised manufacturers with strong approvals.

Margins, costs, and the quality of profitability

While growth was strong, the cost structure shows the trade offs that come with scale. In Q1 FY27, cost of materials consumed increased to ₹ 2,300 million from ₹ 1,177 million, broadly tracking the topline expansion. Employee benefit expense rose to ₹ 152 million from ₹ 115 million, and other expenses rose to ₹ 56 million from ₹ 35 million.

The company noted that EBITDA margins improved sharply versus Q4 FY26 by 408 basis points and also referenced a 215 basis point improvement over the EBITDA margin of 6.73% posted during FY2026. Even so, finance costs remain a factor to watch. Finance costs rose to ₹ 129 million in Q1 FY27 from ₹ 77 million in Q1 FY26. For FY26, finance costs were ₹ 396 million versus ₹ 262 million in FY25.

The presentation also makes an important disclosure on comparability. It notes revalued land in FY26 and provides restated return ratios for FY25. This affects how investors interpret return on equity and return on capital employed trends across years.

Working capital focus and asset light positioning

A central theme in Delton’s turnaround narrative is working capital discipline. The company stated that working capital days improved to 74 in FY26 from 218 in FY22, and that the cash conversion cycle improved to 51 days in FY26 from 214 days in FY22. It also stated an aim to maintain the working capital cycle below 75 to 80 days.

Operationally, Delton attributes inventory improvement to rationalising inventories by reducing SKUs and running a focused product range. On receivables, the company stated it is reducing focus on public sector clients and focusing on high rated EPC players, along with direct sales to customers.

Alongside working capital, the company presented an asset light approach for future growth. It described maximising asset utilisation by sweating assets and installing machinery in leased facilities, favouring an OPEX model instead of a capex heavy approach. The presentation also includes an illustrative revenue outlook chart from ₹ 400 crore in 2024 to ₹ 2,500 crore by 2030.

What to track from here

Delton’s Q1 FY27 performance shows strong momentum, with record quarterly numbers and a clear linkage between strategy and segment traction, especially in EPC. The company also has measurable operational priorities, such as maintaining a sub 75 to 80 day working capital cycle and using an asset light expansion model.

At the same time, the mix of orders and revenue still leans heavily toward EPC, as reflected in the 88% EPC share in the order book as of June 30, 2026. Finance costs also rose sharply year on year. These factors will matter as the company scales and seeks to expand approvals and enter newer sectors such as nuclear, defence, water, and smart metering.

Overall, the quarter reinforces the company’s stated positioning: a low voltage cables and solutions player leveraging approvals, brand recall, and infrastructure tailwinds. Sustaining growth while maintaining margin quality, managing financing costs, and broadening the revenue base beyond EPC will be the key tests in the coming quarters.