Universal Cables FY26: ₹550 Cr Capex, ₹4.50 Dividend

What the board approved on May 23, 2026

Universal Cables has cleared a set of decisions that combine capital expenditure, fundraising and shareholder payouts. At its Board of Directors meeting held on May 23, 2026, the company approved a ₹550 crore capacity expansion project and a technology upgradation plan for its Extra High Voltage (EHV) cable facility at Satna, Madhya Pradesh. Alongside the capex, the board also approved a debt-raising route through Non-Convertible Debentures (NCDs) and recommended a dividend for FY2025-26.

The approvals were taken together with the adoption of audited standalone and consolidated financial results for the quarter and year ended March 31, 2026. Taken as a package, the announcements outline how Universal Cables is balancing growth investments with funding flexibility and a shareholder payout proposal.

₹550 crore capacity expansion: scale-up plan

The board approved a capacity expansion project with an estimated capital outlay of ₹550 crore. While the company did not specify the exact commissioning timeline or capacity addition numbers in the disclosed details, the approval signals a large multi-year investment decision.

For cable manufacturers, capacity expansion is typically tied to order pipeline requirements and the ability to supply a broader range of high-specification products. In this case, the expansion decision comes alongside a specific plant-modernisation plan for the EHV facility, suggesting a dual focus on scale and capability.

₹73 crore EHV facility upgrade at Satna

Universal Cables will invest approximately ₹73 crore to modernise its EHV Cable facility at Satna, Madhya Pradesh. The stated objective is to enhance precision manufacturing and flexibility so the plant can meet specific quality requirements.

The company also linked the upgrade to evolving international quality, safety and environmental benchmarks. The expectation, as described, is that the modernisation will strengthen competitiveness in overseas markets and improve capacity utilisation by enabling the facility to manufacture a wider range of products meeting both domestic and international specifications.

Debt fundraising plan: up to ₹200 crore via NCDs

The board authorised the issuance of NCDs or other debt securities on a private placement basis, aggregating up to ₹200 crore. The company noted that this fundraising will be subject to necessary regulatory or statutory approvals.

To execute the process, Universal Cables constituted a “Debenture Issue & Allotment Committee” to oversee issuance and allotment. This governance step typically helps speed up execution by delegating approvals within a defined mandate, while still remaining within the overall board-approved cap.

Dividend recommendation: ₹4.50 per share for FY26

The board recommended a dividend of ₹4.50 per share for the financial year 2025-2026. The company described this as a 45% dividend on 34,695,381 fully paid-up equity shares, each having a face value of ₹10.

The dividend is subject to shareholder approval at the upcoming 81st Annual General Meeting (AGM). If approved, the company said the dividend would be disbursed within 30 days of declaration, after applicable tax deductions.

FY26 financial results: turnover, profit and margins

Universal Cables reported its highest-ever turnover of ₹3,022.67 crore for FY2025-26, representing growth of 25.50% compared with the previous year. On the profitability line, the standalone net profit for the year was ₹96.53 crore, up 68.52% year-on-year.

On a consolidated basis, net profit for the year rose to ₹163.11 crore from ₹89.39 crore in the previous fiscal year. The EBITDA margin improved to 9.60% in FY2025-26 from 8.40% in the previous year. For Q4 FY2026, the standalone Profit After Tax (PAT) was ₹21.75 crore.

The company also reported Profit Before Tax (PBT) figures for FY2025-26: consolidated PBT of ₹217.40 crore and standalone PBT of ₹135.13 crore.

Board and management changes: director retirement and new compliance head

In board changes, Universal Cables noted that Shri Bachh Raj Nahar, a Non-Executive Independent Director, will retire upon reaching the age of 75 on June 14, 2026. The company stated that the special resolution for his continuation was not passed with the requisite majority. The board noted his cessation as a director effective June 13, 2026.

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

Key approvals and figures at a glance

What investors may track next

From a shareholder perspective, the next formal milestone is the 81st AGM where the dividend recommendation will be placed for approval. If approved, the company has guided that payout would be made within 30 days of declaration, after tax deductions.

On the funding side, investors will watch for updates on the timing, pricing and tenure of the proposed NCD issuance, since the approval is an enabling resolution and execution depends on regulatory and statutory clearances. The company also indicated the trading window would reopen on May 25, 2026.

Conclusion

Universal Cables’ May 23, 2026 board meeting combined three major tracks: a ₹550 crore capacity expansion, a ₹73 crore EHV plant modernisation at Satna, and a plan to raise up to ₹200 crore via privately placed debt securities. Alongside these steps, the company recommended a ₹4.50 per share dividend for FY2025-26, subject to shareholder approval at the 81st AGM, and recorded governance changes including an upcoming independent director retirement and a new Company Secretary and Chief Compliance Officer appointment.