/** blogpostTitle: Dynamic Cables FY26: Growth, mix shift, and a delayed capacity buildout blogpostSlug: dynamic-fy26 blogpostCoverImageUrl: null blogpostCoverImageDescription: Ultra realistic corporate finance scene showing a clean desk with a laptop displaying a multi year line chart rising from about 564 to 1198 and a margin line near 10 to 11 percent, plus a donut chart with four slices labeled HV 63, LV 6, Railway 12, Renewable 18, and a separate bar showing order book rising to about 808; neutral office lighting, no logos, no text beyond simple numeric ticks. blogpostShortTitle: Dynamic Cables FY26 growth and mix shift */

Dynamic Cables FY26: Growth, mix shift, and a delayed capacity buildout

Dynamic Cables Limited closed FY26 with its highest ever revenue and profitability, as per management commentary on the Q4 FY26 earnings call and the FY26 corporate presentation. Revenue for FY26 stood at INR1198 crore, up from INR1025 crore in FY25. Operating profit rose to INR130 crore, taking the operating margin to 10.8%. Profit after tax increased to INR84 crore.

The narrative across both documents is consistent on two points. First, the company has been shifting its business toward core, value added power cables and renewables. Second, it is preparing for the next leg of growth through a greenfield expansion and technology upgrades, even though execution timelines have slipped.

FY26 financial performance in context

FY26 extended the post FY22 upcycle for the company. The presentation shows revenue rising from INR564 crore in FY22 to INR1198 crore in FY26. Profitability improved alongside scale, with operating profit increasing from INR60 crore in FY22 to INR130 crore in FY26, while operating margin stayed in a narrow band around 9.4% to 10.8%.

Returns and balance sheet metrics also improved. The presentation reports ROCE at 26.8% in FY26 and a debt to equity ratio of 0.09x, down from 0.16x in FY25. The company also disclosed CRISIL A/Stable (long term) and CRISIL A1 (short term) ratings.

On the concall, management attributed the improvement in FY26 to operating leverage, a better product mix, and a reduction in finance costs driven by financial discipline and credit rating enhancement.

Mix shift: power cables and renewables take center stage

The company’s product mix has moved materially in FY26. The presentation shows FY26 revenue split of 63.1% HV cables, 6.0% LV cables, 12.4% railway signalling cables, and 18.4% renewable. However, management commentary on the concall adds an important clarification: railway signalling cables were discontinued and had zero contribution in FY26, versus 4% in FY25.

The concall also provides a different FY26 product contribution: HV cable 64%, LV cable 30%, conductor 6%. This suggests that the product mix chart in the presentation should be treated cautiously, or at least interpreted as a classification different from the concall’s categories.

Where the documents align clearly is the rising importance of renewables. The presentation states the renewable segment grew by 100% and contributed about 19% of total revenue in FY26. In the concall, management stated solar cables were about 18% of FY26 revenue, up from about INR105 crore (about 10%) in FY25, and indicated this share could rise to around 20% to 23% going forward.

Customer mix has also shifted toward private sector buyers. The presentation shows FY26 customer mix at 13.4% government, 80.2% private, and 6.4% export. The CFO echoed similar numbers in the concall, stating FY26 was roughly government 13%, private 80%, export 7%.

Order book and operating execution

Order visibility remained healthy. The company disclosed an order book of about INR808 crore at the end of Q4 FY26, with a steady climb from INR331 crore in Q1 FY23 to INR808 crore in Q4 FY26. The FY26 highlights section also reports cash flow from operations of INR62 crore.

Management addressed investor concerns about softer Q4 growth. It stated core product growth in Q4 was about 20%, while overall reported growth was about 7%, largely because low value add low voltage conductors and railway signalling cables were discontinued. It also discussed the impact of raw material price spikes in aluminium and PVC, which led to deferment of order booking and supplies in March, a pattern it described as typical during sudden commodity moves.

On margins, management repeatedly asked investors to focus on operating profit rather than gross margin, citing quarter to quarter changes in product mix, market mix, freight terms, and contract structures.

Strategy and capex: expansion, technology, and new products

The company laid out multiple growth levers in the presentation. These include a greenfield expansion, E-Beam technology adoption, new product development, export expansion aided by UL certification, and demand from emerging end users such as data centers and the EV ecosystem.

The most important near term execution item is the greenfield integrated plant supported by E-Beam technology. The presentation indicates a greenfield capex program of about INR45 crore and states commencement of production in September 2027.

In the concall, however, management guided that production would start around September 2026 and that the project is in final implementation stages, with trial production expected in the next 3 to 4 months. It acknowledged delays due to regulatory approvals, disruption in imported machinery deliveries linked to Iran war related logistics, and compliance requirements with AERB. This creates a timeline inconsistency across documents that investors will likely track closely.

Management also discussed a technical partnership with TS Conductor Corp, USA, to manufacture and market HTLS carbon core conductors (TS Conductor). It positioned this as a stepping stone into the high voltage conductor market, noting that type testing and approvals may take around a year, and that there is no hard timeline for revenue materialization.

Separately, the company highlighted PGCIL approval for ACSR and AL-59 conductors as another step toward expanding presence in conductors.

On exports, management stated FY26 exports saw slight degrowth and March exports were near zero. It reiterated intent to grow exports and said its US plans were earlier impacted by tariff issues. It is now re-establishing distributor relationships in the US and expects some contribution in FY27, without quantifying.

Takeaways

Dynamic Cables entered FY27 with strong FY26 financial performance, a low leverage balance sheet, and an order book of about INR808 crore. The biggest operational theme is a deliberate shift toward core power cables and renewables, alongside pruning of lower attractiveness segments such as railway signalling cables.

The key execution monitorable is the greenfield capacity addition with E-Beam technology. Management has acknowledged delays and provided reasons, but the commissioning timeline differs between the presentation and the concall. Alongside this, the TS Conductor tie-up and PGCIL approvals show an intent to build optionality in higher value conductors, though revenue impact is not yet committed.

If the company delivers on commissioning and ramps up while maintaining its operating margin band of about 10.5% to 11%, FY26 could prove to be a base year for a broader, more technology enabled product portfolio.