Universal Cables FY26: ₹550 Cr Capex, ₹4.5 Dividend

Board approvals announced on 23 May 2026

Universal Cables has cleared a set of strategic and shareholder-facing decisions, anchored by a large capacity expansion and a modernisation plan for its Extra High Voltage (EHV) cable operations. The approvals were taken at the company’s Board of Directors meeting held on 23 May 2026. Alongside the capital expenditure programme, the board also moved on financing plans via debt securities, recommended a dividend for FY2025-26, and approved a key compliance leadership appointment. The updates come with the company reporting its audited results for the quarter and year ended 31 March 2026.

₹550 crore capacity expansion: what the board cleared

The board approved a capacity expansion project with an estimated capital outlay of ₹550 crore. The company has previously indicated that its organic expansion plan’s aggregate outlay was revised to approximately ₹550 crore from ₹482 crore. Universal Cables has also said that new CCV (Continuous Catenary Vulcanization) lines and LV (low voltage) cable facilities are being commissioned to support overall capacity expansion. In an earlier update, the company stated that out of four planned CCV lines, two had been commissioned and reached near maximum capacity utilisation during Q3.

This expansion matters because EHV and related power cable demand is linked to grid additions and higher-specification transmission projects. For manufacturers, incremental lines and facilities can lift throughput and improve delivery timelines, especially when order books are elevated.

₹73 crore EHV cable facility upgrade at Satna

Separately from the expansion outlay, Universal Cables approved a technological upgradation and modernisation plan for its EHV Cable facility at Satna, Madhya Pradesh, with an outlay of approximately ₹73 crore. The company said the initiative aims to enhance precision manufacturing and increase flexibility to meet specific quality standards. It is also intended to align operations with evolving international quality, safety, and environmental benchmarks.

Universal Cables expects the upgrade to strengthen competitiveness in overseas markets. It also expects better capacity utilisation because the facility will be able to manufacture a wider array of products meeting domestic and international specifications. The focus, as described by the company, is on manufacturing precision and the ability to meet tighter specifications across different markets.

Debt fundraising: up to ₹200 crore via NCDs

To support funding requirements, the board authorised issuance of Non-Convertible Debentures (NCDs) or other debt securities on a private placement basis, aggregating up to ₹200 crore. The company noted that this is subject to necessary regulatory or statutory approvals.

A “Debenture Issue & Allotment Committee” has been constituted to oversee the issuance and allotment process. In an earlier meeting agenda note, the company had indicated a fundraising goal of up to ₹150 crore via NCDs, but the board approval communicated later refers to an aggregate of up to ₹200 crore.

Dividend recommendation: ₹4.50 per share for FY26

The board recommended a dividend of ₹4.50 per share for the financial year 2025-26. The company stated that this represents a 45% dividend on 3,46,95,381 fully paid-up equity shares, each with a face value of ₹10. The dividend recommendation is subject to shareholder approval at the upcoming 81st Annual General Meeting.

If shareholders approve, the dividend will be disbursed within 30 days of declaration, after applicable tax deductions. The company’s past disclosed corporate actions include a dividend of ₹4 per share with an ex-date of 04 Sep 2025 and a dividend of ₹3 per share associated with an AGM date of 26 Jul 2024.

Management and board changes flagged alongside results

Universal Cables also approved the appointment of Shri Ajay Kumar Sharma as Company Secretary and Chief Compliance Officer, effective 23 May 2026. The company stated that Sharma holds ICSI Membership No. A-9127 and will serve as a Key Managerial Personnel.

Separately, the board noted that Shri Bachh Raj Nahar, a Non-Executive Independent Director, will retire upon reaching the age of 75 on 14 June 2026, as the special resolution for his continued appointment was not passed.

FY26 performance snapshot: turnover, profit, and PBT

Universal Cables reported its audited standalone and consolidated financial results for the quarter and year ended 31 March 2026. For FY2025-26, the company reported its highest-ever turnover of ₹3,022.67 crore, a growth of 25.50% compared to the previous year. Standalone net profit for the year rose 68.52% year-on-year to ₹96.53 crore.

On a consolidated basis, net profit for the year increased to ₹163.11 crore from ₹89.39 crore in the previous fiscal year. The company also disclosed FY26 Profit Before Tax (PBT) of ₹217.40 crore on a consolidated basis and ₹135.13 crore on a standalone basis.

Order book and operating updates shared earlier in FY26

In an earlier update during FY26, Universal Cables said it maintained a pending order book of approximately ₹2,950 crore as of 31 December 2025. The company also reported that for Q3FY26, standalone net profit rose 93% year-on-year to ₹18.74 crore, while revenue grew 26.4% to ₹767.92 crore.

The company has also disclosed a manufacturing deal with TS Conductor Corp (USA) for HTLS conductors, where TS will supply composite cores and Universal Cables will handle production at its Satna facility. Separately, another update referenced a large export order worth approximately $18 million for 400kV EHV cables from the Middle East.

Key facts table

Market impact: what investors will track

For investors, the updates combine capital allocation, funding strategy, and shareholder returns in one announcement cycle. A ₹550 crore expansion and a separate ₹73 crore upgrade indicate a continued push to scale and improve capability in higher-specification cables, particularly EHV. The approval to raise up to ₹200 crore via NCDs provides a defined debt route, while the committee formation signals the company intends to move operationally on the issuance once approvals are in place.

On shareholder distributions, the dividend remains conditional on the 81st AGM. The company also stated that if approved, payment will be made within 30 days of declaration after applicable tax deductions. Separately, one earlier company note highlighted the reopening of the trading window on 25 May 2026 as a date for investors to note.

Why the Satna EHV upgrade is strategically important

The stated purpose of the Satna modernisation is to raise precision and flexibility so the plant can meet evolving international quality, safety, and environmental benchmarks. In cables, qualification requirements and product specifications can vary materially across utilities and countries, and the ability to manufacture across a wider specification band can reduce dependence on a narrower set of tenders.

By linking the upgrade to overseas competitiveness and to a broader product mix, Universal Cables is positioning the investment as both capability-led and utilisation-led. The company’s disclosed order book and earlier commissioning updates around CCV lines provide additional context on why capacity and process improvements are being prioritised.

Conclusion

Universal Cables’ 23 May 2026 board decisions combined three major themes: scaled capacity creation with a ₹550 crore outlay, process and capability enhancement at the Satna EHV facility through a ~₹73 crore upgrade, and balance sheet flexibility via up to ₹200 crore in privately placed debt securities. The board also recommended a ₹4.50 per share dividend for FY2025-26, subject to shareholder approval at the 81st AGM. Investors will now watch for AGM outcomes on the dividend, subsequent steps on the NCD issuance under the committee’s supervision, and further progress updates on commissioning and utilisation across the expanded manufacturing footprint.