Dynamic Cables Ltd (BSE: 540795) Q3 2026 Earnings Call dated Jan. 27, 2026
Corporate Participants:
Ashish Mangal — Managing Director
Analysts:
Natasha Jain — Analyst
Piyush Sevaldasani — Analyst
Nitin Jain — Analyst
Balasubramanian — Analyst
Raman KV — Analyst
Namish Gupta — Analyst
Mehul Panjuani — Analyst
Ankur Kumar — Analyst
Kushal Kasliwal — Analyst
Aryan Aryan — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Dynamic Cables Q3 and FY26 earning conference call. As a reminder, all participants lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the CONFERENCE over to Ms. Natasha. Thank you. And over to you ma’. Am.
Natasha Jain — Analyst
Thank you Hina. And good afternoon everyone. On behalf of Philip Capital, I welcome all of you to the third quarter earnings conference call of Dynamic Cables Limited. From the management we have Mr. Ashish Mangal, Managing Director, Mr. Murari Lal Podar, Chief Financial Officer and Mr. Govind Sabhu, IR Advisor. I request the team to give their opening remarks post which we shall open the floor for Q and A. Thank you. And over to you sir.
Ashish Mangal — Managing Director
Hello. Good afternoon everyone. I, Ashish Mangal, Managing Director of Dynamic Cables extend a warm welcome to all of you to our earnings call. I am pleased to report a strong and consistent performance for the quarter Q3 with the company delivering its guided revenue and profitability for the period. This outcome reflects disciplined execution, strong governance standards and sustained operational focus. Our growth in order book demonstrates the continued trust and confidence of our customers enforcing our strong market position. Our emphasis on quality has also translated into meaningful milestones with our company securing prestigious certifications such as UL PGCIL approval and NAGL accreditation to our laboratory.
I’m also pleased to share that we have received the requisite AERB setting up approval for our new upcoming E Beam facility, a key milestone in our capacity expansion roadmap. The new plant is progressing as planned and is expected to be commissioned by the end of FY26. Additionally, we have started planning CAPEX to support the future growth. The details of the same will be shared as and when the finalized by the board. Looking ahead, we remain optimistic about long term opportunities in India’s power infrastructure sector supported by strong tailwinds from renewable energy, rural electrification, underground cabling and the transition to higher voltage networks.
With a healthy order book and a strong execution framework, we are confident of sustaining our growth momentum and creating long term value to all stakeholders. With that, I Now invite our CFO Mr. Podar to share the financial highlights for this quarter. Thank you. Yeah. Good afternoon everyone. We are pleased to report another strong performance Achieving our highest ever nine month revenue and profitability. During nine months, sales increased by 21% y1 y while operating profit rose by 29% to 92 crore. Operating margin stood at 10.9% reflecting improved operating leverage and better product mix. Profit operate grew by 46% to rupees 60 crore.
Reflecting the company’s sustained emphasis on efficient execution and prudent financial management. Customer wise contribution in nine months. Government sales 13% private sales 78% export 9%. Product wise contribution was SV Cable 60% LV Cable 33% conductor 7%. As of 31st December, our order book stand at rupees 787 crore, providing strong revenue business. Thank you and we are now open for questions.
Questions and Answers:
operator
Is there any problem? Give a minute. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press Star and two participants are requested to use handsets while asking a question. The first question comes from the line of Piyush from Sundaram. Alternates please go ahead.
Piyush Sevaldasani
Hi sir. Thank you for the opportunity and congrats for a good set of numbers. So my first question is can you help us with what has been the volume growth for this quarter?
Ashish Mangal
Volume growth for nine months has been 17%.
Piyush Sevaldasani
Answer for this quarter it would be how much?
Ashish Mangal
This quarter it would be around 2, 3, 4%.
Piyush Sevaldasani
Okay, okay. So largely the growth is led by the commodity price increase. So have we passed on the complete increase to the end customers?
Ashish Mangal
Yes. So in our business the entire entire price growth is escalation or descalation. Whatever is the variation in price is passed on to our customers.
Piyush Sevaldasani
Okay sir, just on this volume growth, can you please help us understand why this has been so weak in third quarter? Because one of the market leaders, he grew almost 40% in volume this quarter and even spoke about institutional business growing much faster. So are we seeing lot of competitive pressure?
Ashish Mangal
It also depends upon because in cable industry, first of all, exact volume measurement is very very difficult. So we kind of just measures it by amount of metal we are using in the cable. However, there are a lot of other components also which are used in the cable and because each cable is customized. Second point is that I mean it’s not an Apple to Apple comparable business with our competitors because our competitors. Are. More into they are more channel driven businesses whereas we are completely B2B business. And therefore it is not exactly comparable in that terms. There Are lot of channel upstocking and destocking phenomena takes place with the increase and decrease in commodity prices in our channel business which is not applicable to us. So this is one of the key reasons I think which should answer your question.
Piyush Sevaldasani
So I think sir, even in the institutional business they’ve talked about very big growth that is what we were slightly worried about. So are we losing market share to them? What’s just the concern? Anyway sir, my next question is on. The capacity utilization can you help us understand how much was the this quarter?
Ashish Mangal
So our capacity utilization is. Is always 75 to 80% as of in this quarter as it was in. The last quarter also and yeah
Piyush Sevaldasani
so sir, just to understand the total capacity which we have we have talked about 135 crores of capacity per month so does this include the new capex of 3540 crore which we are doing which will get commissioned in fourth quarter?
Ashish Mangal
No, no. So 135 crores per month is does not include the new capex it is from our existing setup and secondly this is our optimum capacity utilization is around 80 to 85% so depending upon the cable cable specification which is under production and also the seasonality which is there in our business. So Q4 is a bit heavy than rest of the quarters.
Piyush Sevaldasani
Ideally December should have been inch higher because your commodity prices have gone up right?
Ashish Mangal
Commodity prices has gone up so but I mean commodity prices for one of one thing is that we are into 100% 95% is aluminum for US commodity so there is not much increase in the commodity prices as compared to copper and other commodities which. Which you must be referring to and secondly it again I am talking that these are all indicative numbers because in cable industry it is very very difficult to quantify the volumes or the capacity volumes because the cable is customized each and every customization has its own machine time so on a machine time basis it is very very difficult to quantify the volume per se.
It is. It can be from year to year yes, on a year on year basis we give an indicative number that what is the best capacity volume which we value which we can do from the plant and optimum utilization as we have already guided in the past Our experience is that it depends on 80 to 80 of the guided capacity.
Piyush Sevaldasani
I think that’s very clear. Thank you for the opportunity and all the best.
Ashish Mangal
Thank you.
operator
Thank you. The next question comes from the line of Nitin Jain from Fair Value Equity Advisory. Please go ahead.
Nitin Jain
Thank you for the opportunity and congratulations on a good quarter. So my first question is on revenue growth. So if we see a Trend of last six, seven quarters, we are at the slowest revenue growth around 19%. So my question is, do we see it accelerating going forward given that the monsoon factor is well and truly behind us now?
Ashish Mangal
Absolutely. So there are a lot of new growth areas which we feel that provide us a good Runway for growth in our business. So if you look at our growth journey in last 3, 4 quarters, it is primarily driven by power distribution segment smart metering and other initiatives. All the government schemes which come into play, the vertical expansion of the power distribution network. So all these factors drive the power distribution growth. Second is our renewable initiative which we started last year. So last year it contributed around 10, 15% of our sales and this year I think it will be higher.
It will be around 20% of our sales, 15 to 20% of our sales this year. So gradually that is inching up. Apart from this, we have announced certain approvals which we have received from power grid which gives us a good Runway or breakthrough into AL59 conductors. Then we have some encouraging developments in STLs conductors. So these are all high tension lines or the transmission sector where vertical growth is taking place. We have got AERB approval for setting up our E beam facility. So this opens up a new area for us on the renewable side. We are venturing into the DC cable.
So that is again leverage on our existing things. Unfortunately our US exposure plan have not materialized because of this tariff announcement. Although we are getting continuous approvals from the under the standards for our products. But the tariff situation is unfavorable and especially for that is delaying entry of our entry into the US market. So these are few growth areas which are which definitely are going to drive the growth in the future. Also to capture this growth opportunity we are doing a greenfield project and which will be completed and will be available from next financial year.
As well as new product developments and customer engagements are taking place in areas like data centers and other things. So these are few growth areas which which we have been talking about in last three, four quarters. And it should as we have guided in the past also for 18 to 20% growth. And we have a track record of this 18 20% growth for last in last seven, eight years. We believe that we should continue to compound our growth our business at this rate for in the longer run.
Nitin Jain
Great sir, that is quite helpful. Thank you on the clarification. So on the order book status we see an improvement quarter on quarter. But what I wanted to know is last quarter you mentioned that order Winds had slowed down because of the extended monsoon. Do we see order winds also accelerating now, especially in the month of January?
Ashish Mangal
So order wins are basically, I mean it’s a continuous phenomena and it does keeps on happening. I mean it’s a regular process for our business. The incremental order wins is a test. I mean the increased order book is a testimony of increased order wins. In the last quarter post the monsoon season and festival season getting over, we believe that this acceleration should continue going forward. That is what our sense is from the market.
Nitin Jain
Okay, so on the gross margins there’s a significant improvement year on year, but quarter on quarter there is a dip. So is it that we have not been able to pass all of the impact of metal prices? Is it that part of it we have absorbed or is there something else here?
Ashish Mangal
The gross margin has nothing to do with input prices or raw material prices in our business because 100% of our price variation or the raw material price fluctuation is passed on to our customers. Yes, yes, yes. So 100%. 100% on a real time basis. So that is, that is quite established in an established practice in our business, which is an institutional business, the B2B business, not only for us, but for everyone in our business it is only in the channel sales where there is a lag in passing on or there is some elbow room for elbow room in this kind of business.
For us it is a complete pass through. The margins are, I mean it is largely driven by the sales mix. And in some quarter there may be some high margin orders getting executed in some margin there, in some quarters there would be some low margin orders getting executed. So that creates a quarterly fluctuation. But on a longer term, if you look at it, we have, I mean it’s around 80% gross margin, 20% gross margin business.
Nitin Jain
Right. Okay. So also would you be able to provide any status update on two categories and data center and wind products, wind related products.
Ashish Mangal
So I mean we are more active in the solar side, not on the wind side as such. So on the solar side we are already supplying AC cables and the order book composition of solar cable is also quite encouraging. So the share of solar cable has increased over a period of time and that is also reflected in our order book. So now around more than 15% of our business contribution comes from the solar cable. And on the order book side also it reflects the same. Around 16, 17% of our order book is comprising of solar.
Currently we are just supplying AC cables to the, to all these solar plants. However, with the new facility coming up or the new plant coming up. We will also be equipped to sail DC cable so that that should again increase or further penetrate improve our penetration in the on the solar side, on the solar cable side, on the data center wise. I think the industry as such is also in a very niche stage and it is very difficult to kind of provide an update on a quarterly basis. But definitely our eyes and our product development team are closely working with some of the customers in this segment and trying to develop suitable products for data centers.
As and when there is any substantial achievement or breakthrough, we’ll kind of update you.
Nitin Jain
Okay, great. So I’m asking this because I think last quarter or the quarter before that you had mentioned that we were working on wind related products. Just I was looking for a status update on that. But that’s okay. Maybe we can talk about it after the annual update. So my last question is the sum of employee and other expenses over a period of time they have inched up from around 8% to 9%. Although we are able to improve our EBITDA margins, how do we see the trend on these expenses? Thank you.
Ashish Mangal
I mean we have always said that we are typically an 80, 10, 10 business. So 80% is the material cost, 10% is our employee and other expenses and 10% is our EBITDA margin margin. And 1% variation here and there keeps on happening on these fronts. So this is largely our business construct and it has been the long term construct for us. And I think that no material changes we can think of in this construct as such.
Nitin Jain
Thank you sir, that’s very helpful and all the best.
operator
Thank you. The next question comes from the line of Bala Subramaniam from Arian Capital. Please go ahead.
Balasubramanian
Good afternoon sir. Thank you so much for the opportunity. Sir. On the order book side like, like how the demand is coming. I think order book remaining like we have not seen much improvement last quarter. 721 crore right now 787 crore. How this order book pipeline is coming and last time from some inventory was stuck at the Both the side TCL and customer side. How the dispatch normalizing through Q4.
Ashish Mangal
I think your voice is not clear. So I think the second part of the question I could not understand on the order book growth. I think primary question which you were which is kind of asking us.
Balasubramanian
Yes, please go ahead.
Ashish Mangal
Yes. So this quarter the order book has been encouraging. So it’s a 10% growth on a quarterly basis which is quite encouraging. And if you look at at our order book growth pattern you will see a similar Trend So I mean three years back we were at 450 crores, 500 crores kind of range. Then we improved to 600700 crores range. Now we are into 700 to 800 crore range. So this is how the trajectory is and this is how we have been growing our business going forward. Also.
Balasubramanian
Sir, actually last quarter some inventory were stuck with DCL and its customers. How the dispatch is normalizing in Q4.
Ashish Mangal
Dispatches have started picking up in Q4 because there is a lot of a lot of government project related business does is heavier or has a seasonality effect in the Q4 and that is, that is evident for our business.
Balasubramanian
Okay sir, on that I think our new plant will be operational by end of this financial year. I think we are adding DC cables majorly in this facility. I think we also have a adjusting alternate cable offerings. How this wallet share will like a change after introduction of DC cables and how this typical ratio of DC to alternate cable demand from your solar PPC customers.
Ashish Mangal
I mean the wallet share definitely is going to increase and the increase will depend upon customer to customer. It is not a standard answer which we can provide you and the ratio also kind of depends on project to project. So again standard answer to it. And maybe the plant owners of the EPC players are more equipped to kind of provide you the a better better understanding of the ratio of on these ratios. I believe because we are cable suppliers and we kind of work on the orders which we receive from our customers and the specifications which we receive from our customers.
Balasubramanian
Okay sir, I think you already explained about the data centers and I need to understand about battery energy storage system side and like how do you understand on cable requirements for batteries energy storage side and what is the market sizing and what is your focus area for the product development side?
Ashish Mangal
Sir, very difficult on the left side. Because it is a very very. Components are being imported.
operator
Sorry to interrupt sir, there is some disturbance I just from your end. Can you just keep yourself a little bit at distance from the mic?
Ashish Mangal
Hello.
operator
Yes, you can proceed now.
Ashish Mangal
Yes. So on the best side I think it’s. It’s too early kind of to comment because as such the industry has just just started and moreover most of the components are imported in India as of today. So very very too early, I mean very very early to kind of comment anything on the best from the cable supply perspective on data centers. We have already given our commentary. I think that should suffice.
Balasubramanian
Okay sir, thank you.
operator
Thank you. The next question comes from the line of Raman Kiwi From Sequin Investment. Please go ahead.
Raman KV
Hello sir, I just want to understand. You said the margin improvement is mainly attributed to your product mix. What in the product like HV or LV or connectors drove this margin improvement? One is that. And second is your greenfield capex of I think 35 crores will provide as an incremental revenue of around 300, 250, 300 crores going by your current asset turn. So now you are currently operating at 80 capacity utilization. Going forward, what’s the CapEx plan you have for let’s say next two years or three years? Because this 35 crores greenfield project will be completely, if my understanding is right, will be exhausted by probably FY27 and or first half of FY28.
So that’s why I just want to understand your the growth plans from the company’s perspective. Thank you sir.
Ashish Mangal
So basically it was a HV heavy quarter for us. Just to give you a color on the. On the sales mix side. So one is this. Second is that you are correct, our CapEx, this current CapEx will be over by in this financial year and maybe for the new financial years we will have to go for additional capex. And so largely if you, if we are able to do the asset tons, if you can, you have calculated it correctly. The only caveat is that the optimum capacity utilization in our cable business is 80 to 85%.
So the peak capacity you have calculated it correctly. But I think we’ll have to give a factor of cable customization or the order customization as well as the seasonality which is there in our business. So that kind of gives us an optimum capacity utilization of around 80, 85% in our business business. So this is one factor which I just wanted to point out. The second point is that regarding the CapEx plan, we have not crystallized the CAPEX plan but just to give you a. I mean we would be sharing our CapEx plan probably once this CapEx is over and the new CapEx is decided.
But if we have to go grow at 18, 20% and the asset terms remain largely same, you can kind of do a backup envelope calculation of how much capex we would be doing for next on our capex budget which we need to provide for in next three years.
Raman KV
So just a follow up on my question with respect to the margin. Can you just provide the some highlight like whether during the quarter the product mix was more. I just want to understand where the margin improvement came from whether it was from high voltage cables or low voltage cables. In terms of margin, in terms of product mix which improved during the quarter. I just want one Sunday there were.
Ashish Mangal
Some high margin orders which were executed and dispatched during the quarter. And we maintain that our. I mean in the cable business the normalized margin on a yearly basis, on a long term, yearly basis will remain in 10, 10 and a half, 11% range. So that is the range which we have been talking about in a. In a B2B cable business. And we still maintain that this range will be intact for going forward also.
Raman KV
Answer. Our Entire sale is B2B right?
Ashish Mangal
Yes, our entire sale is B2B.
Raman KV
Sir, amongst the B2B how much is like export, how much is domestic? And in domestic if you can provide the split between institution.
Ashish Mangal
Export is a 8 to 10% kind of business for us. And balance 90 is domestic business. Government business is around less than now. It has reduced to around 12, 13%.
Raman KV
And remaining is.
Ashish Mangal
Private.
Raman KV
Sorry, the remaining is institutional.
Ashish Mangal
Private not in, I mean institutional of course, but it’s a B2B business. So this comes also as well as we supply to EPC contractors also.
Raman KV
Okay. Thank you sir.
operator
Thank you. The next question comes from the line of Namish Gupta from ngc. Please go ahead.
Namish Gupta
Hello.
operator
Yes sir, you are audible. Please go ahead.
Namish Gupta
Yeah. Hi sir. Thanks for, for giving the chance and congr. And congratulations on a good set of numbers. My question is like from March 23rd till now, I mean we were like till March 25th we were growing at a very rapid trace in terms of like order book. In March23 our order book was like something around 3, 330 crores. But since March 25th it is kind of like I stuck in from 730 to 780 crores. So are we seeing, I mean, I mean are we holding the orders or will this order book also, I mean accelerate as we.
As our new capex starts.
Ashish Mangal
Yes, so you are absolutely correct. So the order book is also a function of our capacity to deliver. So we can’t take more. I mean the order book has to be in line with our. With our deliverable capacity. So as our capacity utilization has gone up from March 23 to March 26 or 26 and so we have to kind of balance and calibrate our order book based on our deliverable capacity because our machine time is limited. Although we have done some debottlenecking and some Brownfield Capex during March 23rd to March 26th and which that has enabled us to increase our order book from 400 crores to 800 crores.
Namish Gupta
So like like your abhishara vi amara like march 26 may capex complete. March 26 june 26. Yeah.
Ashish Mangal
So that is what is our endeavor. That’s endeavor in the business.
Namish Gupta
Okay sir, a question or I mean are gross margins like. I mean in last two years it has increased like from 18 to 20%. So there is a 2% jump. And this is very like this is. I mean this increment in margin is going on every. Every quarter. Not like. It is not like a one time jump. So as of now our gross margins is more than like 20%. So like first what is actually the reason of this increase in 2% gross margin in last 2 and 2 and 2 and a half years? And will this margin be sustainable in future also?
Ashish Mangal
So gross margin has been higher than FY25 in FY19 or FY20 gross margin 22%. The entire construct of the business is a 80% gross margin business as a long term average depending upon the revenue mix and the specific orders being executed during that quarter. So a quarter to quarter fluctuation. But our basic construct is a 80, 1010 business.
Namish Gupta
Okay, okay. And so just one last question sir. Like although volume upload like calculate business. I mean what was like broad reason. Around 19% sales growth. Mix of the of the products. Higher. Higher realization.
Ashish Mangal
There are lot other components which go in cable making metal is just 60 70% of the total cable cost balance 30, 40% is other cost also. So during this quarter, this quarter conductor business which is a pure metal business that contribution was very less. It was less than 5%. So quarter on quarter volume growth or volume comparison more difficult. Whereas other components of customization it keeps on varying. It’s very difficult. Nine month average. It’s a 17% kind of volume growth. For us during the nine months. That is a better number to look at from the management perspective.
Namish Gupta
Sir, just a clarification. In this only percent of volume growth quarter on quarter.
Ashish Mangal
Last quarter to this quarter Q3 versus Q3.
Namish Gupta
Okay, okay. Take, take. Fine. Thank you.
operator
Thank you. The next question comes from the line of Meul from 40 Cent. Please go ahead.
Mehul Panjuani
Hello sir. Thank you so much for the opportunity. Next financial year May how much will it increase the top line?
Ashish Mangal
Sir, our asset turns are typically 6 60. Sorry 6 times. 6 times our gross block. So we are doing a capex of around 4045 crores which should give us typically unlock additional turnover of around 250 crores to whatever six times.
Mehul Panjuani
So that will be annual turnover, right? 250 crores.
Ashish Mangal
Yes, yes.
Mehul Panjuani
Incremental 250 crores. Okay. And sir, one question around competition. So since we are in the B2B. Business, what kind of competition do we have? You know how much is the market share in the B2B segment?
Ashish Mangal
So it is.
operator
There is a lot of background noise from your end.
Mehul Panjuani
Okay, I’m mute. I’m on mute.
Ashish Mangal
Yeah. So what I was saying was that industry sizing to such. Such breakup is very very difficult to kind of get from a reliable source. The total overall wire and cable industry is estimated to be around 80,000 crores. We believe that around 50% or 45 to 50% of the. Of the entire B2B should be the B2B business segment which we are into. So if we do this math this is again all estimated number. The B2B industry sizing should be around 35 40,000 crores. And we are doing around 3, 4% market share of this B2B business.
How about the B2B market?
Mehul Panjuani
Thank you so much, sir. All the best.
operator
Thank you. The next question comes from the line of Ankur Kumar from Alpha Capital. Please go ahead. Mr. Ankur, kindly proceed with your question.
Ankur Kumar
Hello sir. Thank you for taking my question. Sir, I wanted to ask. On this demand side we have seen growth in order book. Can you talk whether demand is set to improve or maybe it is it. Is it reducing because some of the power capex getting delayed. So can you talk on that front please?
Ashish Mangal
So demand. Demand is. I mean increase in order book reflects increase in demand.
Ankur Kumar
So is it like the private side which is helping in. In the capex increase?
Ashish Mangal
Yes. So we are. I mean we are focused more on private, private business. So that is. That is our focus area and that is driving the growth for us.
Ankur Kumar
Okay sir, answer on. On the guidance side do you expect a 20, 25% growth or like. We are guiding only 18 to 20% for this year and the next year.
Ashish Mangal
We don’t give any guidance as such. But what we are saying is that in last. I mean if you look at our track record we have been growing at 18 to 20% on a long term growth trajectory. And that is how our business and our company’s DNA is tuned to achieve.
Ankur Kumar
Thank you and all those.
operator
Thank you. The next question comes from the line of Kushan from Invade Research. Please go ahead.
Kushal Kasliwal
Hi. Thanks for taking my question. Sir. In past few con calls we have. Discussed that we want to grow at 1.5 times the industry growth rate. So since this time around, you know our volume growth. Sorry, our volume growth has remained subdued. So is it fair to assume that the industry growth was missing in this quarter in terms of volume growth? That is my first question.
Ashish Mangal
It’s very difficult to kind of quantify the industry growth, size and all those things on a quarterly basis. And secondly, as I told you that volume, volume growth again is not a number. It depends upon the product specification. So as I told you that our conductor ratio or in the contribution, the sales mix was much lower in this quarter which led to a lower volume growth for us in this particular quarter. But in a long term we maintain that in the same industry growth would be around 12, 13% and we would be growing at 18, 20%.
So that is what has been our overall philosophy or growth philosophy, growth ideology in our company.
Kushal Kasliwal
Okay. Okay. So can you also tell me the change in conductor sales as a percentage of top line this quarter versus same quarter last year?
Ashish Mangal
This quarter it was four and a half percent. And last quarter last year would be around 9%.
Kushal Kasliwal
Got it. Got it. So due to this 5% change, let’s say our volume growth actually came down significantly from the previous quarter. Is that what you indicate? Okay, good. Thank you.
Ashish Mangal
There is no other element. It is only metal. And we are just comparing metal. I mean this, this volume growth is just a metal which we have used or consumed during the quarters. That’s how we can measure.
Kushal Kasliwal
Okay. Okay, understood. I think it’s better to look at yearly numbers other than looking at quarterly numbers. Thank you.
operator
Thank you. The next question comes from the line of Aryan from Manish J and Associates. Please go ahead.
Aryan Aryan
Hello sir. Thank you for giving me this opportunity. My question was relating that in earlier con calls was talking about the increase in revenue from railway signaling cables. Yes, the revenue has increased. And how much percentage of revenue has increased from this segment?
Ashish Mangal
Railway signaling is as. I mean in last. Since last three, four quarters we have been explaining that the business scenario, the competitive intensity in railway signaling business is not favorable. And we are not focused on railway signaling because the margin profile is much better in the distribution business in the solar renewable sector and other private players. So that is the reason why railway signalling is not a focus area for the company.
Aryan Aryan
Okay. And my second question is that sir, as there is a supply of solar power in India but transmission and distribution of power is still facing a huge gap. So how you are looking to utilize this opportunity to the gap as already there are big players in the competition.
Ashish Mangal
So that this gap is where the cables are used. Yeah, we are also supplying cables cable to fill this gap.
Aryan Aryan
Okay. So any strategy to compete with the big players?
Ashish Mangal
We have, we are competing. So if you look at our solar cable business, it is one of the fast fastest growing segments for our company. Last year the sales proportion was around 10 to 15% which has increased to 15 to 20% this year, which will increase to 15 to 20% this year. So this is, there is a huge, I mean we can say that we have been successfully established ourselves in this business category.
Aryan Aryan
Okay. And my last question is that I. Just want to take update on the vendor registration of the data center. What is the update?
Ashish Mangal
Things are going on and as I told you that it is very, very difficult to kind of give a quarterly update on this. So it remains same, the product development team and the customer registration team both are working in tandem with the relevant players in the industry. And we hope that we were able to do a meaningful breakthrough in this segment as the segment matures because the end user segment has to mature for us to supply cables.
Aryan Aryan
Okay. Okay. So thank you, all the best.
operator
Thank you. The next question comes from the line of Nitin Jain from Fair Value Equity Advisory. Please go ahead.
Nitin Jain
Yeah, thank you for the follow up opportunity. So as we have seen the contribution of solar products is gradually rising. And assuming our new CapEx goes live by FY26 and as we are predicting and you know, we start we go live with data center products, can we see any meaningful improvement in margins as well.
Ashish Mangal
In the B2B business? It is the, I mean again I am reiterating the same thing. The long term sustainable margins will be between 10 to 11%. So that is a range which we can kind of assume for a B2B player. And this is the range which will come back. I mean there may be some quarterly fluctuations here and there, but on a long term, on a yearly basis this would revert to this, this, this range because it’s a, it’s a competitive business. In a B2B competition you have to compete on the, on the lowest price bid.
Nitin Jain
Right. And on the US product launch. And if the tariff related situation, assuming that it gets even partially resolved from 50% to 25%, you know, given both countries have made some statements regarding the Russian oil we’re not buying anymore. So even if it comes down partially from 15 to 25, will our US export become viable in that scenario? Will we start exporting in that situation?
Ashish Mangal
It becomes encouraging for us to kind of explore the US market. Once the tariff comes down, there is no chance for us to enter that market.
Nitin Jain
Right? No, I’m asking in the scenario that even if there is a partial resolution.
Ashish Mangal
It also depends upon how the tariffs are negotiated with other countries because we have to compete with the other countries as well. So there is lot of volatility in that situation. And a standalone answer is very, very difficult to. To. To. I mean it is very, very difficult to answer on a standalone basis.
Nitin Jain
Okay.
Ashish Mangal
Because the world analytics is so, I mean we are on our job so we are getting the approvals done. We are getting, we have already started. We, we had started doing the sales road shows for our products in, in US but unfortunately that terrorist situation has become unfortunately available. And once it, if it comes to our favor definitely we would, we would be able to get a breakthrough in the new market.
Nitin Jain
Okay, got it. And so one last question. As a percentage of overall business, what is the game plan to, you know, where do we want to take the solar business, the solar product business?
Ashish Mangal
I don’t know. I mean it’s, it’s a huge opportunity for a company like, of our size because we are just, even if we do 20% we would be supplying 200 to 50 crores of solar cables whereas the market is around 6,7000 crores or 5000 crores upwards. Let me put it that way. So we have, we have a huge Runway to increase our presence in this market. So yes, yes, I believe that in next three, four years we are, we should be in a situation to double this business at least.
Nitin Jain
That’s very helpful. Thank you so much and all the best.
Ashish Mangal
Thank you.
operator
Thank you. Ladies and gentlemen, we will take the last question from Aryan from Manish J. Munda and Associates. Please go ahead.
Aryan Aryan
Hello.
operator
So you are audible. Please proceed with your question. Yes sir, you are audible to us. Please proceed.
Ashish Mangal
Are you there?
operator
Yes sir, the line for Mr. Aryan has been disconnected.
Ashish Mangal
Okay.
operator
Okay. Ladies and gentlemen, I would now like to hand the conference over to Ms. Nazha for closing comments.
Natasha Jain
Thank you. Hina. Requesting management to give any closing remarks.
Ashish Mangal
Thank you sir. Thank you everyone and thank you all the investors and key stakeholders to be a part in showing faith in us. And we’ll try to give more and better results in the coming years. Thank you.
Natasha Jain
Thank you. That concludes the conference. Participants may disconnect their lines.
operator
Thank you on behalf of Philip Capital Private Limited. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.