Prime Cable says pass-through added Rs 20.5 crore in H1

Prime Cable Industries Limited said Rs 20.5 crore of reported revenue of Rs 196.4 crore in the first half of financial year 2027 (H1 FY27) was raw-material inflation passed to customers, while profit after tax increased 73% year on year to Rs 9.5 crore. The company said this contractual price effect did not generate incremental profit.

How much of Prime Cable's H1 revenue was raw-material pass-through?

Prime Cable said Rs 20.5 crore of its Rs 196.4 crore reported H1 FY27 revenue came from higher raw-material prices passed through under customer contracts. Its normalized revenue, calculated using raw-material prices prevailing at the end of FY26 as a reference point, was Rs 175 crore. Management uses that measure to separate changes in input prices from underlying business activity.

A significant proportion of Prime Cable's contracts contain price-variation clauses, management said. The clauses allow changes in raw-material costs to be charged to customers, protecting the company from directly absorbing inflation, but management said the resulting revenue does not add profit. Reported revenue can consequently move with material prices without a proportional movement in earnings.

Reported revenue increased 117% from Rs 90.7 crore in H1 FY26 to Rs 196.4 crore in H1 FY27. Prime Cable did not disclose normalized H1 FY26 revenue, so the call does not provide a like-for-like normalized growth rate for the half year. It does show that the Rs 20.5 crore pass-through formed part of the reported revenue increase.

Did Prime Cable's profit increase independently of the pass-through?

Yes. Prime Cable reported H1 FY27 profit after tax of Rs 9.5 crore, up 73% from Rs 5.5 crore in H1 FY26, while earnings before interest, tax, depreciation and amortization increased to Rs 16.5 crore from Rs 9.8 crore. Its reported earnings before interest, tax, depreciation and amortization margin was 8.4% on H1 FY27 revenue of Rs 196.4 crore.

Management attributed the period's earnings increase to execution and utilization at existing facilities. It cited demand from power transmission and distribution projects, renewable-energy infrastructure, and private engineering, procurement and construction customers. Management distinguished this operating performance from the Rs 20.5 crore of revenue arising from price clauses, which it said did not create additional profit.

Prime Cable also said its Rs 175 crore of normalized H1 FY27 revenue had exceeded the growth trajectory contemplated in its earlier FY27 guidance of 40% to 50%. That was management's assessment, rather than a disclosed comparison with H1 FY26 normalized revenue. Its stated priorities were execution discipline, facility utilization and a progressive shift in product mix.

Has Prime Cable improved its receivables cycle?

Yes. Prime Cable said receivable days declined to 67 days as of September 30, 2026, from 85 days as of March 31, 2026. Trade receivables were Rs 74.8 crore on September 30, compared with Rs 70.5 crore six months earlier, an increase of 6% while reported H1 FY27 revenue grew 117% year on year.

The Rs 4.3 crore increase in receivables between March 31 and September 30 was smaller than the rise in reported revenue to Rs 196.4 crore for H1 FY27. Management attributed the 18-day reduction partly to stronger collections and partly to a higher contribution from non-government customers, which it said have relatively favourable receivable profiles.

Government- and utility-linked projects remained meaningful contributors, while private engineering, procurement and construction and industrial customers were also important, according to Prime Cable. Management said it seeks a customer mix that combines the scale and visibility of projects with the cash-conversion profile of private-sector customers. The transcript did not disclose operating cash flow, inventory or borrowings, so receivable days alone do not provide a full cash-flow assessment.

What order book supports Prime Cable's FY27 outlook?

Prime Cable said its order book was about Rs 265 crore on September 30, 2026 and Rs 295 crore by October 30, 2026. An additional Rs 19 crore medium-voltage cable order subsequently lifted the total to more than Rs 310 crore, while the medium-voltage order book separately stood at about Rs 85 crore.

For FY27, management expects normalized revenue of Rs 370 crore, comprising Rs 340 crore from existing low- and medium-voltage facilities and Rs 30 crore from the new medium-voltage facility. The company compared that target with reported FY26 revenue of Rs 234 crore and described the normalized growth as more than 50% on its stated basis. Management cautioned that reported FY27 revenue may differ with movements in raw-material prices.

Management expects a normalized profit-after-tax margin of 5.5% for FY27. It said its objective is to maintain approximately a 5.5% normalized margin in the low-tension business and progressively achieve better margins in medium-voltage cables as that business scales. No separate medium-voltage margin target or date for achieving one was disclosed.

When will Prime Cable's new medium-voltage capacity contribute?

Prime Cable expects commercial operations at its new medium-voltage cable line in Ghiloth, Rajasthan, to start on November 21, 2026. Management said unseasonal rains delayed commissioning, but it did not expect that shift to reduce FY27 revenue aspirations because orders had been secured and the line is located alongside the existing Ghiloth facilities.

The line is expected to contribute Rs 30 crore to Rs 35 crore of normalized revenue in FY27 during its ramp-up phase, against peak normalized annual revenue potential of Rs 150 crore. Management's objective is to reach peak monthly revenue of about Rs 12 crore in March 2027. FY28 would provide the first full-year opportunity for the line to operate at its peak annual revenue potential, subject to the planned ramp-up.

A further facility adjacent to the new medium-voltage plant is expected to be commercialized in April 2027. Management said it would add Rs 100 crore of normalized annual revenue capacity at about 85% utilization. For FY28, Prime Cable expects normalized revenue of Rs 560 crore, including Rs 360 crore from existing facilities, Rs 150 crore from the first new line and Rs 50 crore from the additional line.

Conclusion

Prime Cable's H1 FY27 results show that its reported revenue increase included Rs 20.5 crore of contractual raw-material pass-through, which management said did not create incremental profit. At the same time, profit after tax increased to Rs 9.5 crore from Rs 5.5 crore, and receivable days fell to 67 from 85, combining higher absolute earnings with a shorter collection cycle.

The next disclosed milestones are the November 21, 2026 commercialization of the first new medium-voltage line, management's March 2027 objective of about Rs 12 crore in monthly revenue from that line, and the planned April 2027 launch of the adjacent facility. The key unresolved matter is whether the order book above Rs 310 crore converts into management's Rs 370 crore FY27 normalized revenue target while receivable discipline is maintained.