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

What the board approved on 23 May 2026

Universal Cables said its Board of Directors, at a meeting held on 23 May 2026, approved a set of actions spanning shareholder returns, capital expenditure, funding options, and senior management changes. The decisions came alongside the approval of audited standalone and consolidated financial results for the quarter and year ended 31 March 2026.

Key items included a recommended dividend for FY2025-26, a technological upgradation plan for the company’s Extra High Voltage (EHV) Cable facility at Satna in Madhya Pradesh, and a larger capacity expansion programme with an estimated outlay. The board also authorised raising debt through privately placed Non-Convertible Debentures (NCDs) or other debt securities, subject to regulatory or statutory approvals.

Dividend recommendation: ₹4.50 per share for FY2025-26

Universal Cables recommended a dividend of ₹4.50 per equity share for the financial year 2025-2026. The company said this represents a 45% dividend on its fully paid-up equity shares with a face value of ₹10 each.

The dividend is proposed on 3,46,95,381 fully paid-up equity shares. The recommendation is subject to shareholder approval at the upcoming 81st Annual General Meeting (AGM). If shareholders approve, the company said the dividend will be disbursed within 30 days of declaration, after applicable tax deductions.

EHV facility modernisation in Satna: ₹73 crore plan

Alongside the dividend, the board approved a technological upgrade and modernisation plan for the EHV Cable facility at Satna, Madhya Pradesh. The project is estimated at ₹73 crore.

The company said the initiative aims to enhance precision manufacturing capabilities and improve flexibility to meet specific quality requirements. The upgrade is also intended to align the facility with evolving international quality, safety, and environmental standards. Universal Cables added that the upgradation is expected to bolster 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.

Capacity expansion: ₹550 crore outlay

Universal Cables also approved a capacity expansion project with an estimated capital outlay of ₹550 crore. The company described this as a strategic move, confirmed during the same board meeting on 23 May 2026.

In separate information shared in the provided material, Universal Cables was also described as having an expansion plan to augment capacity in power cables and flexible wires at its Satna and Goa facilities, estimated at ₹277 crore. The text does not clarify whether this ₹277 crore plan is a subset of the ₹550 crore expansion or a separate programme, so both figures are reported as stated.

Funding option: up to ₹200 crore via NCDs

The board authorised the issuance of Non-Convertible Debentures (NCDs) or other debt securities up to ₹200 crore on a private placement basis. The fundraising is subject to necessary regulatory or statutory approvals.

To execute the process, the company constituted a “Debenture Issue & Allotment Committee” to oversee the issuance and allotment of these securities. Beyond the size and route, the provided text does not specify tenor, coupon, end-use, or the timeline for the proposed issuance.

Management and board changes

Universal Cables noted that Shri Bachh Raj Nahar, a Non-Executive Independent Director, will retire upon reaching the age of 75 on 14 June 2026. The company said a special resolution for his continued appointment was not passed with the requisite majority. Another statement in the provided text also references cessation effective 13 June 2026.

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

FY26 financial snapshot: turnover, profit, margins

For FY2025-26, Universal Cables reported its highest-ever turnover of ₹3,022.67 crore, up 25.50% year-on-year, as stated in the provided material. 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 EBITDA margin improved to 9.60% in FY2025-26 from 8.40% in the previous year. The company also reported consolidated Profit Before Tax (PBT) of ₹217.40 crore and standalone PBT of ₹135.13 crore for FY26.

For the fourth quarter ended 31 March 2026, revenue from operations was ₹840.27 crore compared with ₹674.03 crore in the corresponding quarter of the previous year. Standalone Profit After Tax (PAT) for Q4 FY26 was ₹21.75 crore.

Key numbers at a glance

Market-related data cited in the material

The provided text includes a market snapshot stating Universal Cables’ share price was ₹1,012.05 as of 22 May 2026 at 15:29. It also lists a market capitalisation of ₹2,653 crore along with valuation and return metrics including ROE of 7.81%, P/E (TTM) of 18.16, EPS (TTM) of 42.11, and P/B of 1.42. Dividend yield figures cited in the material include 0.40 and 0.52%.

The same material also references an earlier final dividend of ₹4 per share with an ex-date of 4 September 2025.

Why this matters for investors tracking cables and power equipment

The set of announcements ties together three common investor focus areas: dividends, growth capex, and funding flexibility. The ₹4.50 per share dividend recommendation indicates the company’s intention to return cash to shareholders, subject to AGM approval and post-tax payout mechanics.

At the same time, the ₹73 crore EHV modernisation plan and ₹550 crore capacity expansion suggest management is committing meaningful capital to manufacturing capability and scale. The company explicitly linked the EHV upgrade to international quality, safety, and environmental benchmarks and to improving its ability to serve overseas markets. The ₹200 crore NCD authorisation adds an additional lever to fund corporate needs, though the final structure depends on subsequent approvals and issuance decisions.

Conclusion

Universal Cables’ 23 May 2026 board meeting combined FY26 shareholder return plans with a clear capex agenda, a proposed debt fundraising route, and key compliance leadership appointments. The next milestone on the dividend front is shareholder approval at the 81st AGM, after which the company has said it would pay the dividend within 30 days of declaration, subject to tax deductions. Separately, execution details for the ₹73 crore EHV upgradation, the ₹550 crore expansion, and any ₹200 crore NCD issuance will determine how quickly these plans translate into operational outcomes.