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Prime Cable FY26: Fast Growth, A Shifting Customer Mix, and the Move to Medium Voltage

Prime Cable Industries Limited closed FY26 with a sharp rise in scale. Revenue from operations grew to 234.9 crore in FY26 from 141.0 crore in FY25, a year-on-year increase of 67%. EBITDA rose to 23.5 crore from 14.6 crore, up 61%, while PAT increased to 12.3 crore from 7.4 crore, up 67%. The EBITDA margin stayed broadly steady at 10.0% in FY26 versus 10.4% in FY25.

Management described FY26 as a year of operational progress. The company highlighted strong execution across utility and EPC-led projects, and pointed to an improving contribution from private institutional customers. It also disclosed one-time professional and advisory expenses of about 2.0 crore in H2 FY26 related to fundraising and public market readiness initiatives.

What changed in the business mix

A key narrative in FY26 was the shift in customer composition. As per the investor presentation, the government share of revenue reduced materially in FY26, while private corporates expanded rapidly.

Government revenue increased to 119.6 crore in FY26 from 105.1 crore in FY25, but private corporates grew to 115.3 crore from 35.9 crore. This moved the overall revenue mix to 50.9% government and 49.1% private in FY26, compared with roughly three-fourths government in FY24 and FY25.

The sales channel mix also leaned further towards EPC contractors. EPC contractors contributed 104.7 crore in FY26 versus 49.1 crore in FY25, while tender-based revenues rose to 121.3 crore from 82.8 crore.

Financial summary

Product mix: control cables still lead, ABC scaled up

Prime Cable’s FY26 revenue split by product shows a more diversified basket than earlier years. Control cables remained the largest category at 91.3 crore in FY26, but their share reduced as aerial bunched cables grew faster.

In FY26, the product mix was 38.9% control cables, 28.7% power cables, 26.6% aerial bunched cables, and 5.8% others. Aerial bunched cables increased to 62.6 crore in FY26 from 14.9 crore in FY25, as per the investor presentation.

The second half trend indicates that aerial bunched cables became a large contributor in H2 FY26 as well, with the H2 FY26 split showing 33.3% aerial bunched cables and 33.4% control cables.

Capacity, utilization, and the MV pivot

The investor presentation stated that the company’s Narela (Unit 1) and Ghiloth (Unit 2) facilities were almost at peak utilization in March 2026. It also disclosed FY26 capacity utilization of 55% on an annualized basis.

The next leg of growth is positioned around medium voltage cables up to 33 kV. The company highlighted that it secured BIS certifications for MV power cable (IS 7098 Part 2), ACSR connectors (IS 398 Part 6), and solar cables (1500V DC, Class 5), describing this as entry into the renewable segment.

Unit 3 project disclosed in the investor deck

The new manufacturing unit is planned on 98,900 sq. ft. land with 50,000 sq. ft. built-up area, focused on MV cables up to 33 kV. The deck discloses installed capacity of 5,000 kms per annum by the end of H1 FY27 and 8,000+ kms per annum by Q1 FY28.

The capex overview disclosed a total project cost of 39.9 crore, split as 10.5 crore for land (lease), 11.0 crore for construction, and 18.4 crore for plant and machinery. The deck states that 14.5 crore is planned to be deployed from IPO proceeds, with 25.4 crore planned via internal accruals and debt.

In the earnings call, management reiterated commissioning timelines and described a ramp-up period after commissioning. Management also indicated a preference to fund future growth investments through internal cash generation and debt, with the intent to minimize equity dilution.

Working capital: the key financial watchpoint

FY26 growth was accompanied by higher working capital intensity. Debtor days increased to 85 in FY26 from 65 in FY25, and the cash conversion cycle increased to 81 days from 73 days.

Cash flows reflect this pressure. The cash flow statement shows net cash from operating activities of -13.1 crore in FY26, with working capital changes of -30.9 crore. In the concall, management stated that receivables were elevated because Q4 is seasonally stronger for execution and billing. Management also stated that about 35% of collections from outstanding receivables had been received by May end and expected normalization in H1 FY27.

Guidance and near-term visibility

The investor presentation includes a stated expectation that revenue will grow at a 45% CAGR over the next two years, driven by demand tailwinds, peak utilization at existing facilities, and ramp-up of new capacity.

In the concall, management guided for about 40% to 45% year-on-year revenue growth. On margins, management guided FY27 EBITDA margins to remain broadly stable in the 10% to 11% range, with potential for expansion as medium voltage contribution increases.

The company also disclosed its order book position. The investor presentation stated an unexecuted order book of 170.0 crore as of mid-May, to be executed over the next 4 to 6 months. In the concall, management stated the order book stood at about 191 crore by May end, including a 32 crore order from a private EPC contractor.

Takeaways

Prime Cable’s FY26 numbers show a company scaling quickly with stable margins and improving customer diversification. The move towards a near 50:50 government-private split is a meaningful change, especially as management repeatedly linked private EPC exposure to better cash conversion.

The near-term execution visibility from the disclosed order book and the planned MV capacity addition are clear strategic pillars. At the same time, FY26 working capital and operating cash flow trends highlight the operational discipline required as the company grows. For FY27, the trajectory will likely be judged on two factors management itself emphasized: utilization and ramp-up execution, and normalization of receivables.