Paramount Wires and Cables Q1 FY27: Exports Normalize, Domestic Power Orders Stay Strong

Paramount Wires and Cables opened FY27 with a quarter that management called one of its strongest on record, helped by a recovery in exports and steady momentum in domestic power and infrastructure demand. Revenue from operations for Q1 FY27 was INR 529.4 crore, up 17.4 percent year on year. Operating profit excluding other income was INR 34.7 crore and operating margin expanded to 6.6 percent, compared with 3.4 percent in Q1 FY26. Profit after tax was INR 19.7 crore.

The quarter matters in context. FY26 saw a sharp disruption in the US export business due to tariffs, and management repeatedly referenced that episode as the key driver behind margin compression last year. In Q1 FY27, the company described a more stable export environment after the US Supreme Court invalidated the IEEPA tariffs, bringing India back closer to parity with other exporting nations.

The mix improved as exports returned, while domestic power stayed the anchor

The company’s Q1 FY27 revenue mix shows a business still led by power cables, with exports acting as a meaningful second engine.

Power cables contributed 57.2 percent of Q1 revenue, while export sales were 29.3 percent. The domestic to export split for the quarter was 70.7 percent domestic and 29.3 percent exports. Management stated export revenue in Q1 FY27 was INR 155 crore, up sharply versus the tariff compressed Q4 FY26 when exports were INR 87 crore.

On the domestic side, management disclosed that domestic revenue in Q1 FY27 was INR 374 crore, supported mainly by power cables and infrastructure-driven demand. Within domestic, B2B industrial revenue was INR 296 crore, B2C retail and distribution was INR 44 crore, and B2G government and PSU business was INR 35 crore.

Order book stays domestic heavy, with power orders providing visibility

As of 30 June 2026, the order book stood at INR 615 crore, up from INR 583 crore at the end of March 2026. The mix is distinctly domestic.

Domestic orders were INR 518 crore, representing 84 percent of the total order book. Export orders were INR 97 crore. Power cable orders were INR 455 crore, around 74 percent of the total order book.

Management also reiterated a key policy that shapes reported order book levels: the company does not accept firm price orders beyond three to four months because long-duration fixed-price orders are hard to hedge in a volatile copper and aluminium environment. This approach is positioned as margin discipline, not a constraint on demand.

Profitability: operating margin expands, and management points to gradual normalization

The operating margin expansion was one of the most discussed points in the call. Management attributed the improvement to three clear drivers.

First, the US business began normalizing after tariff invalidation, and export share rose back to 29 percent in Q1 FY27. Second, the domestic mix stayed favorable, with power cables and B2B institutional business forming a large share of sales. Third, the company highlighted its ability to pivot between domestic and exports, referencing how it rebalanced the mix across FY22 to FY26 based on cycle conditions.

Management indicated it expects to reach FY25 level margins by Q4 FY27 and expressed confidence of moving toward pre-tariff levels as the year progresses, supported by the recovery in US exports.

Capacity: near full utilization now, with Narmadapuram positioned as the next growth leg

The company stated that existing plants at Dharuhera and Khushkhera are operating at near optimal utilization, and management described capacity as the main constraint rather than demand.

This is where the Narmadapuram greenfield project becomes central. The investor presentation outlines a 31-acre project in Madhya Pradesh with an investment of INR 300 crore. Partial commissioning is targeted in Q1 FY28. The company targets turnover of INR 500 crore in FY28 and INR 1,200 crore in FY29 from this facility.

On the call, management said most critical machinery has been ordered, civil construction mobilization has started, and it expects major construction to be completed within six to seven months on internal timelines. Management also stated around INR 30 crore plus has been spent on Narmadapuram so far.

The facility is expected to expand the product envelope into EHV cables up to 132 kV, specialized transmission conductors, and E-Beam cables. Management also clarified that approvals for higher voltage products would come progressively after production starts. It stated the company already has approvals up to 66 kV, while 132 kV approvals would need samples and customer processes after manufacturing commences.

Balance sheet and working capital: equity raise strengthens liquidity buffer

During the quarter, management disclosed a fresh equity raise of about INR 122 crore. Around INR 65 crore was earmarked for Narmadapuram capex and the balance was intended to strengthen working capital.

Net worth increased to INR 894 crore as of 30 June 2026 from INR 778 crore as of 31 March 2026. Debt to equity remained at 0.15x. Management stated it does not expect debt to equity to cross about 0.3x by the completion of the first phase of Narmadapuram.

Working capital cycle improved to 96 days in Q1 FY27 from 101 days in Q4 FY26. Management also stated receivable days improved to 64 from 79 at the end of March 2026, and the company is working toward maintaining working capital cycle within a 90 to 100 day band.

What to track from here

Management guidance in the call framed FY27 as a year of steady growth within existing capacity and gradual margin repair, with the larger growth step expected post FY28 as new capacity ramps up.

It guided FY27 revenue growth of roughly 15 to 20 percent, citing the near full utilization at existing facilities. It also indicated an expectation of INR 700 to 800 crore exports in FY27, supported by Q1 export revenue of INR 155 crore and the improving US demand and trade environment.

The quarter’s message is consistent: domestic power demand provides stability, exports provide upside when trade conditions normalize, and Narmadapuram is being built to remove the capacity ceiling. The execution on commissioning timelines, approvals for higher voltage cables, and the sustainability of margin recovery as exports scale will be the key items investors will likely track through FY27 and into FY28.