Orient Cables grew revenue 78% as capital efficiency fell

Orient Cables (India) Limited increased revenue from operations by 78% from Rs 657.767 crore in FY24 to Rs 1,171.654 crore in FY26, but its EBITDA margin, return on capital employed and gross fixed-asset turnover declined. Net debt-to-equity rose from 0.23 to 0.94, while net working-capital days increased from 14 to 48.

How fast did Orient Cables grow revenue?

Orient Cables recorded a 33.46% compound annual growth rate in revenue from operations between FY24 and FY26, compared with the peer-set average of about 17.27% cited in the industry benchmarking. Revenue rose to Rs 824.958 crore in FY25 and Rs 1,171.654 crore in FY26, from Rs 657.767 crore in FY24. This equals a Rs 513.887 crore increase over two years, or 78%, based on the reported figures.

The FY26 result also included a change in reporting perimeter that affects direct comparison. Restated financial information for FY24 and FY25 was prepared on a standalone basis, whereas FY26 and the three months ended June 30, 2026 were prepared on a consolidated basis after subsidiary OCL Green Technology Limited was incorporated on May 5, 2023. Orient Cables reported Rs 489.156 crore of revenue in Q1FY27, but the prospectus specifies that the three-month figures are not annualised.

Orient Cables’ growth was accompanied by a change in product mix. Networking Cables and Solutions generated Rs 916.565 crore in FY26, equal to 78.23% of revenue, down from 87.89% in FY25 and 83.47% in FY24. Specialty Power, Optical Fibre Cables and Solutions rose to Rs 250.394 crore, or 21.37% of FY26 revenue, from Rs 98.091 crore, or 11.89%, in FY25. The company began wire and cable harness and EV charging-gun assembly in FY26, but this category contributed Rs 15.2 lakh, or 0.01% of revenue.

Why did Orient Cables’ margins decline despite revenue growth?

Orient Cables’ EBITDA margin declined to 8.23% in FY26 from 10.17% in FY25, even though EBITDA increased by Rs 12.539 crore to Rs 96.397 crore. EBITDA means earnings before interest, tax, depreciation and amortisation, and the margin is EBITDA divided by revenue from operations. The FY26 margin was also below the 8.94% reported in FY24, showing that revenue expanded faster than EBITDA across the two-year period.

Profitability after tax similarly did not keep pace with sales. PAT increased from Rs 40.069 crore in FY24 to Rs 53.813 crore in FY26, a 34% increase, while revenue increased 78%. PAT margin, calculated by Orient Cables as profit attributable to owners divided by total income, fell from 6.03% in FY24 and 6.41% in FY25 to 4.55% in FY26. Q1FY27 showed an EBITDA margin of 11.22% and PAT margin of 6.77%, but those figures cover only the three months ended June 30, 2026 and are not annualised.

The prospectus identifies conditions that can affect cable-industry profitability, including movements in copper, aluminium and polymer prices, competition-driven pricing pressure, and rupee-dollar exchange-rate volatility. It states that imported aluminium and insulation materials can expose manufacturers to currency-driven cost increases. Orient Cables is also entering products including e-beam irradiated specialty cables, solar junction boxes, tethered drone systems, harnesses and electric-vehicle charging products, which the industry report describes as having higher margins than existing products; the reported FY26 revenue mix does not quantify the contribution of most newer categories.

How did Orient Cables’ capital efficiency change?

Orient Cables’ return on capital employed, or ROCE, fell by 17.31 percentage points from 41.13% in FY24 to 23.82% in FY26. ROCE was 36.46% in FY25, so the decline accelerated in FY26 despite the revenue increase. Return on equity, or ROE, also decreased from 37.26% in FY24 to 25.84% in FY26, after standing at 34.60% in FY25.

Asset use moved in the same direction. Gross fixed-asset turnover, defined in the benchmarking as revenue from operations divided by average gross carrying value of property, plant and equipment, decreased from 8.44 times in FY24 to 6.56 times in FY25 and 5.81 times in FY26. Orient Cables had installed capacity of 895,776 kilometres of networking, specialty power and optical-fibre cables as of June 30, 2026, compared with annualised manufacturing capacity of 794,976 kilometres cited as of March 31, 2026. The turnover measure will depend on whether revenue from the expanded asset base rises sufficiently relative to gross fixed assets.

The peer table shows that Orient Cables’ FY26 ROCE of 23.82% was below Polycab India Limited’s 31.32% and RR Kabel Limited’s 25.80%, but above KEI Industries Limited’s 23.53%, Finolex Cables Limited’s 13.60% and Sterlite Technologies Limited’s 9.40%. The comparison has limits: peer figures are generally consolidated, while certain peers use standalone metrics, and Orient Cables’ FY24 and FY25 figures are standalone but FY26 is consolidated.

Did leverage and working capital rise with expansion?

Orient Cables’ net debt-to-equity increased more than fourfold, from 0.23 in FY24 to 0.63 in FY25 and 0.94 in FY26. Net debt is defined as current and non-current borrowings plus lease liabilities, less cash and cash equivalents; net debt-to-equity divides that amount by total equity. Net debt-to-EBITDA rose from 0.49 in FY24 to 1.36 in FY25 and 2.31 in FY26, indicating that debt increased faster than EBITDA over the period.

Working-capital use also increased. Net working-capital days rose from 14 in FY24 to 27 in FY25 and 48 in FY26, before easing to 46 in Q1FY27. The measure equals inventory days plus trade-receivable days minus trade-payable days. Although FY26 was equal to Polycab’s 48 days and below RR Kabel’s 49 days in the supplied table, it was 34 days above Orient Cables’ FY24 level. The company also reports that its top 10 suppliers provided about 70% of raw materials in FY26, creating a concentration exposure if pricing, supply-chain or contractual disruptions occur.

Conclusion

Orient Cables delivered rapid reported top-line expansion between FY24 and FY26, with a shift toward Specialty Power and Optical Fibre Cables and Solutions alongside a larger revenue base. However, the financial measures underlying capital efficiency moved adversely over the same period: EBITDA margin fell by 0.71 percentage points, ROCE fell by 17.31 percentage points, net debt-to-equity rose by 0.71, and working-capital days increased by 34.

The next disclosed indicators are whether the FY26 capacity base supports a recovery in gross fixed-asset turnover, whether new specialty products contribute enough revenue to affect the mix, and whether working capital and net debt stabilise. Orient Cables has stated that its e-beam facility commenced commercial production in the current fiscal year and that it is obtaining approvals for automotive and railway applications, while the proposed electric-vehicle charging supply arrangement remains prospective.