Prime Cable targets Rs 370 crore normalized FY27 revenue

Prime Cable Industries Limited targets Rs 370 crore of normalized revenue in fiscal year 2027 (FY27), including Rs 30 crore from a medium-voltage line scheduled to begin commercial operations on November 21, 2026, after commissioning was delayed by unseasonal rains. Management said the target is above its earlier 40% to 50% growth range.

What does Prime Cable's FY27 revenue target include?

Prime Cable expects Rs 370 crore of normalized FY27 revenue, made up of Rs 340 crore from its existing low-tension and medium-voltage facilities and Rs 30 crore from the new medium-voltage line. The forecast uses raw-material prices prevailing at the end of FY26 as its reference point, rather than reported sales that can rise or fall with pass-through movements in material costs.

Management said the Rs 370 crore target represents more than 50% normalized growth on its stated comparison basis against reported FY26 revenue of Rs 234 crore. This is above Prime Cable's previous FY27 guidance of 40% to 50% revenue growth. On the November 5, 2026 call, management said it was being slightly conservative because existing facilities were already at peak utilisation and had capacity bottlenecks that needed to be addressed.

For FY28, Prime Cable expects normalized revenue of Rs 560 crore, a 50% increase over the illustrative Rs 370 crore FY27 normalized base. The FY28 plan assumes Rs 150 crore from the line scheduled for November 21, 2026, and Rs 50 crore from an additional line expected to be commercialized in April 2027. These are management targets, subject to the planned ramp-up of the facilities.

Why does Prime Cable use normalized revenue?

Prime Cable uses normalized revenue to isolate underlying execution from raw-material price movements, which management said generated about Rs 20.5 crore of first-half FY27 (H1 FY27) reported revenue without incremental profit. Its contracts commonly include price-variation clauses, allowing input-cost changes to be passed on to customers rather than being absorbed by Prime Cable.

In H1 FY27, Prime Cable reported revenue of Rs 196.4 crore, while normalized revenue was Rs 175 crore. Management said price inflation accounted for the difference, principally through higher prices for metals, polyvinyl chloride and steel. It told investors that about 85% of its business carries price-variation clauses, a mechanism it said protected absolute profitability when input prices rose.

The distinction also changes how margins are read. Prime Cable reported H1 FY27 profit after tax (PAT) of Rs 9.5 crore, up 73% from Rs 5.5 crore in H1 FY26, while reported earnings before interest, tax, depreciation and amortisation (EBITDA) rose to Rs 16.5 crore from Rs 9.8 crore. EBITDA margin on reported revenue was 8.4%, but management assessed PAT against normalized revenue at about 5.4% to 5.5%.

Management expects normalized PAT margin of 5.5% in FY27. It said the objective is to maintain approximately 5.5% normalized PAT margin in low-tension cables, while progressively achieving better margins in medium-voltage products as that business gains scale. Management said the new line's initial margins should be broadly comparable with those of the existing low-tension facilities.

When will Prime Cable's medium-voltage capacity begin contributing?

Prime Cable expects commercial production from its new medium-voltage line at Ghiloth, Rajasthan, to begin on November 21, 2026, with about Rs 30 crore of normalized FY27 revenue contribution. The commissioning date moved because of unseasonal rains, but management said the delay would not reduce its FY27 revenue aspiration.

The line has a peak normalized annual revenue potential of Rs 150 crore, according to management. Prime Cable aims to reach peak monthly revenue in March 2027, equivalent to approximately Rs 12 crore in that month. FY28 would therefore be the first year in which the line could contribute at its peak annual potential, subject to its production ramp-up.

Prime Cable said no additional certifications, approvals or audits were currently expected before commercial production because the line is located within its existing Ghiloth premises. During H1 FY27, its in-house laboratory received National Accreditation Board for Testing and Calibration Laboratories (NABL) accreditation to test cables up to 33 kilovolts, and it secured type-test certifications and customer approvals for products up to that voltage.

A second expansion at the Ghiloth campus is expected to be commercialized in April 2027. Management projects that adjacent facility will add Rs 100 crore of normalized annual revenue capacity at about 85% utilisation. In the FY28 revenue plan, however, Prime Cable includes only Rs 50 crore from this additional line, indicating a planned ramp rather than an assumption of its full annual capacity contribution immediately.

What supports Prime Cable's capacity and revenue plans?

Prime Cable reported an order book of about Rs 265 crore at September 30, 2026, which increased to Rs 295 crore by October 30, 2026 and exceeded Rs 310 crore after a further Rs 19 crore medium-voltage order. Management said the medium-voltage order book alone was around Rs 85 crore, providing demand visibility as the November line begins operations.

The order pipeline spans utilities, renewable-energy infrastructure, power-distribution projects and private engineering, procurement and construction (EPC) customers. Management said government and utility-linked projects remained meaningful contributors, while private EPC and industrial customers were also important. Prime Cable aims to balance project scale and visibility with the relatively more favourable receivable profile it attributed to non-government customers.

Prime Cable also reported an improvement in collections metrics during H1 FY27. Trade receivables were Rs 74.8 crore at September 30, 2026, compared with Rs 70.5 crore at March 31, 2026, a 6% increase while reported revenue rose 117% year on year to Rs 196 crore. Receivable days fell to 67 from 85 over the same period.

Management attributed the reduction in receivable days partly to a higher contribution from non-government business. Prime Cable's stated priorities are to execute the order book, commission and ramp the medium-voltage lines, improve capacity utilisation, expand customer approvals, and maintain discipline in working capital and capital allocation. It has not finalized plans for capacity additions beyond the facilities expected by April 2027.

Conclusion

Prime Cable's outlook separates the effect of raw-material price pass-through from operating execution, with normalized H1 FY27 revenue of Rs 175 crore and PAT of Rs 9.5 crore providing the reported backdrop. The order book exceeding Rs 310 crore, including about Rs 85 crore in medium-voltage cables, is the disclosed demand pipeline supporting the planned shift toward higher-value cable products.

The next disclosed milestones are commercial production from the first new line on November 21, 2026, its targeted Rs 12 crore peak monthly revenue in March 2027, and commercialization of the additional Ghiloth line in April 2027. Management's FY28 normalized revenue target of Rs 560 crore depends on the first new line reaching its planned ramp-up and the second line contributing Rs 50 crore.