Johnsoncab margins more than doubled as revenue expanded rapidly

Johnsoncab Electricals Limited’s EBITDA margin more than doubled to 13.55% in the five months ended August 31, 2026, from 6.14% in fiscal 2024. Revenue from operations increased from Rs 88.34 crore in fiscal 2024 to Rs 210.47 crore in fiscal 2026, while profit after tax margin rose to 7.64% in the latest period.

Why did Johnsoncab margins more than double?

Johnsoncab’s reported EBITDA margin increased by 7.41 percentage points between fiscal 2024 and the five months ended August 31, 2026. EBITDA, or earnings before interest, tax, depreciation and amortisation, is defined by Johnsoncab as profit adjusted to exclude other income, depreciation and amortisation expenses, finance costs and tax expenses. The company calculates EBITDA margin by dividing EBITDA by revenue from operations.

The increase occurred across every disclosed period. EBITDA margin rose from 6.14% in fiscal 2024 to 8.68% in fiscal 2025 and 11.43% in fiscal 2026, before reaching 13.55% in the five months ended August 31, 2026. The fiscal 2026 margin was 5.29 percentage points above fiscal 2024, but it was the five-month 2026 margin that exceeded twice the fiscal 2024 level.

Profit after tax, or PAT, margins also rose over the same sequence. PAT margin, defined as profit for the year or period divided by revenue from operations, increased from 2.86% in fiscal 2024 to 3.91% in fiscal 2025, 6.38% in fiscal 2026 and 7.64% in the five months ended August 31, 2026. PAT increased from Rs 2.52 crore in fiscal 2024 to Rs 13.42 crore in fiscal 2026 and Rs 8.63 crore in the latest five-month period.

Was Johnsoncab’s margin expansion matched by revenue growth?

Johnsoncab’s margin expansion coincided with substantial revenue growth through fiscal 2026. Revenue from operations increased 58.24% to Rs 139.79 crore in fiscal 2025 from Rs 88.34 crore in fiscal 2024. Revenue then grew 50.56% to Rs 210.47 crore in fiscal 2026, according to the company’s reported key performance indicators.

The five-month figures cannot be read as a full-year result because they cover the period ended August 31, 2026 rather than a 12-month fiscal year. Revenue of Rs 113.04 crore in those five months was 53.71% of fiscal 2026 revenue of Rs 210.47 crore. Maintaining the latest margin through a full year would require the relationship between revenue and the company’s undisclosed cost base to continue through the remaining months.

Johnsoncab manufactures low-voltage wires and cables, defined as products designed to operate at or below 1.1 kilovolts. Its products include control cables, power cables, building wires, welding cables, solar or photovoltaic cables and submersible flat cables. Two manufacturing units in Mehsana, Gujarat had combined annual installed capacity of 79,950 kilometres as of fiscal 2026, based on a September 15, 2026 certificate from an independent chartered engineer.

Did Johnsoncab disclose a fall in cost of goods sold?

Johnsoncab did not disclose cost of goods sold as a percentage of revenue in the supplied financial information. The business overview and key performance indicator table report revenue, EBITDA, PAT, margins, net worth and leverage, but do not provide raw-material cost, employee expense, manufacturing expense or a cost-of-goods-sold ratio. The claim that cost of goods sold fell from 90.5% to 83.2% of revenue is therefore not supported by the supplied material.

The disclosed figures do establish that EBITDA grew faster than revenue between fiscal 2024 and fiscal 2026. Revenue increased by Rs 122.13 crore over those two fiscal years, while EBITDA increased by Rs 18.64 crore and EBITDA margin increased by 5.29 percentage points. That arithmetic indicates a higher share of revenue was retained as EBITDA, but it does not identify the contribution of input costs, pricing, product mix, production volumes or overheads.

Johnsoncab reported total income of Rs 211.34 crore in fiscal 2026, compared with revenue from operations of Rs 210.47 crore. Total income includes operating revenue and other income, whereas the company’s EBITDA definition excludes other income. EBITDA margin is therefore consistently measured against revenue from operations, enabling comparison of the 6.14%, 8.68%, 11.43% and 13.55% reported margins without including other income.

What changed in Johnsoncab’s funding and sales concentration?

Johnsoncab’s debt-equity ratio declined from 3.70 times in fiscal 2024 to 2.93 times in fiscal 2025, 2.54 times in fiscal 2026 and 1.94 times as of August 31, 2026. The ratio divides total debt by total equity; total debt includes long-term and short-term borrowings, including unsecured loans from directors and related parties. Total equity comprises share capital plus reserves and surplus.

Net worth rose from Rs 8.88 crore in fiscal 2024 to Rs 14.24 crore in fiscal 2025, Rs 31.44 crore in fiscal 2026 and Rs 40.08 crore as of August 31, 2026. Return on equity, or ROE, was 32.93% in fiscal 2024, 47.27% in fiscal 2025, 58.75% in fiscal 2026 and 24.14% for the five-month period. Johnsoncab calculates ROE using PAT divided by average opening and closing equity, so the five-month metric is not directly comparable with the full-year percentages.

Johnsoncab’s revenue remained concentrated in Gujarat despite sales across several Indian states. Gujarat contributed Rs 149.24 crore, or 70.91%, of fiscal 2026 revenue from operations and Rs 86.33 crore, or 76.37%, in the five months ended August 31, 2026. Domestic sales accounted for 99.70% of fiscal 2026 revenue, while exports were Rs 62.98 lakh, or 0.30%, leaving the reported margin profile predominantly dependent on domestic sales.

Conclusion

Johnsoncab’s disclosed financial indicators show that growth in revenue was accompanied by a rising EBITDA and PAT share of operating revenue. EBITDA margin rose from 6.14% in fiscal 2024 to 11.43% in fiscal 2026 and 13.55% in the five months ended August 31, 2026, while debt-equity declined from 3.70 times to 1.94 times. The available information supports the margin trend but not a specific cost-of-goods-sold explanation.

The next measure to watch is whether Johnsoncab sustains its 13.55% EBITDA margin beyond the August 31, 2026 interim period while operating its 79,950-kilometre annual installed capacity. The company’s subsequent disclosures could also clarify whether Gujarat, which generated 76.37% of five-month revenue, remains its principal geographic dependency and whether a detailed cost breakdown becomes available.