Orient Cables (India) Limited's EV unit reports negative net worth

Orient Cables’ 51%-owned subsidiary, OCL Greentech Private Limited, reported a Rs 51.4 lakh loss and negative net worth of Rs 46.4 lakh in fiscal 2026. The EV unit was incorporated on May 5, 2025, and its stated business had not commenced as of the red herring prospectus.

Why does Orient Cables’ EV unit have negative net worth?

Orient Cables’ EV unit reported negative net worth because OCL Greentech’s fiscal 2026 loss after tax of Rs 51.4 lakh exceeded its Rs 5 lakh paid-up equity share capital. The subsidiary reported net worth of negative Rs 46.4 lakh for fiscal 2026, its first disclosed financial period following incorporation on May 5, 2025.

OCL Greentech had 50,000 issued, subscribed and paid-up equity shares with a face value of Rs 10 each, producing Rs 5 lakh of paid-up capital. Its fiscal 2026 loss after tax was equivalent to 338.39% of its Rs 15.2 lakh revenue from operations, while basic and diluted earnings per share were both negative Rs 102.70.

The filing provides no fiscal 2024 or fiscal 2025 figures for OCL Greentech because the company was incorporated after both periods. The fiscal 2026 position is therefore an initial reported result rather than a change measured against earlier operating years, and the filing does not disclose a capital-raising plan, production target or commercial-launch date.

What financial position did OCL Greentech report in fiscal 2026?

OCL Greentech reported Rs 15.2 lakh in revenue, a Rs 51.4 lakh loss after tax and Rs 1.82 crore in borrowings in fiscal 2026. Its borrowings were 36.4 times its Rs 5 lakh paid-up share capital, while its reported net worth was negative Rs 46.4 lakh.

The filing describes OCL Greentech’s business as not yet commenced, despite reporting fiscal 2026 revenue from operations of Rs 15.2 lakh. It does not identify the customer, product, transaction type or other source of that revenue, so the disclosure does not permit a separate assessment of recurring sales or commercial production.

For the subsidiary’s reported balance-sheet position to change, future profits, additional equity, borrowing movements or other financial-statement changes would have to occur. OCL Greentech’s Rs 1.82 crore borrowings and negative Rs 46.4 lakh net worth make subsequent disclosures on funding and operations relevant, but no such plan is set out in the supplied filing.

What business is Orient Cables’ EV unit authorised to conduct?

Orient Cables’ EV unit is authorised to deal in wire and cable products, cable harness assemblies, EV charging guns, EV charging-gun and cable assemblies, and plastic components. OCL Greentech’s stated objects include manufacturing, assembling, selling, buying, importing, exporting, designing, stocking and distributing those products.

The subsidiary’s disclosed product scope extends to electric-vehicle charging equipment through EV charging guns and associated cable assemblies. It also overlaps with cable-related activities through wire, cable and harness assemblies, but the filing gives no manufacturing site, installed capacity, order book, customer list or timetable for beginning the stated business.

Orient Cables owns 25,500 of OCL Greentech’s 50,000 equity shares, or 51%, giving it a one-percentage-point majority. Aket Sharma and Richa Sharma each hold 12,250 shares, or 24.5%, meaning the two minority shareholders together own 49% of the Rs 5 lakh paid-up capital.

How does the Aditya Infotech cable venture differ from the EV unit?

Orient Cables’ venture with Aditya Infotech Limited is a 50:50 cable business, while OCL Greentech is a 51%-owned subsidiary with EV charging and component activities in its stated objects. Corelink Cable Technology Private Limited was incorporated on June 10, 2026, more than a year after OCL Greentech’s May 5, 2025 incorporation.

Corelink is authorised to deal in electric cables including local area network, or LAN, cables, closed-circuit television, or CCTV, cables, terminated assemblies, connectors and allied products. Its listed activities also include manufacturing, assembly, processing, agency, distribution, importing and exporting, with a product focus on cable and connectivity applications rather than EV charging guns.

Corelink has issued, subscribed and paid-up capital of Rs 2 crore, divided into 20 lakh equity shares of Rs 10 each. Orient Cables and Aditya Infotech each hold 10 lakh shares, or 50%, so neither partner has a disclosed majority stake in the venture.

Corelink’s authorised share capital is Rs 10 crore, divided into 1 crore equity shares of Rs 10 each, compared with its Rs 2 crore paid-up capital. The authorised-capital figure sets the maximum share capital permitted under its current capital structure; the filing does not disclose future issuance, funding commitments, revenue or operating results for Corelink.

What management links connect Orient Cables to the new entities?

Orient Cables’ Chairman and Managing Director, Vipul Nagpal, is a director of OCL Greentech, while Whole-time Director Vardaan Nagpal is a director of both OCL Greentech and Corelink. OCL Greentech’s four directors are Vipul Nagpal, Vardaan Nagpal, Richa Sharma and Saket Sharma.

Vipul Nagpal’s current five-year term as Orient Cables’ Chairman and Managing Director began on January 1, 2025, and he has been associated with the company since its incorporation on September 15, 2005. Vardaan Nagpal became a Whole-time Director on March 28, 2025, and the disclosed directorships establish management connections to both expansion entities.

The prospectus also identifies office-rental arrangements involving Vipul Nagpal and Orient Networks Private Limited. Orient Cables agreed on April 1, 2026 to pay Vipul Nagpal Rs 1 lakh per month for its registered office until February 28, 2027, while it pays Orient Networks Rs 4 lakh per month for its corporate office under an agreement running from May 1, 2024 to March 31, 2027.

Vipul Nagpal and Garima Nagpal hold 99% and 1%, respectively, of Orient Networks’ share capital. The filing says Orient Cables will ensure procedures and practices permitted by law and regulatory guidelines to address conflict situations involving OCL Greentech as and when they arise, but it does not set out separate operating-management plans for either new entity.

Conclusion

Orient Cables has established two expansion vehicles with different ownership models and product mandates. OCL Greentech is a controlled 51%-owned EV charging, cable-assembly and components subsidiary with a fiscal 2026 loss of Rs 51.4 lakh and negative net worth of Rs 46.4 lakh, while Corelink is an equally held venture with Aditya Infotech for LAN, CCTV, connector and allied cable products.

The next disclosed points to watch are the commencement of OCL Greentech’s stated business and future financial reporting from Corelink, which was incorporated on June 10, 2026 without operating figures in the filing. OCL Greentech’s subsequent results, borrowings and net worth will show whether its first reported fiscal 2026 position changes after commercial activity begins.