Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Dynamic Cables Ltd (BSE: 540795) Q4 2026 Earnings Call dated May. 12, 2026
Corporate Participants:
Ashish Mangal — Managing Director
Analysts:
Pranesha — Analyst
Piyush Sevaldasani — Analyst
Unidentified Participant
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Dynamic Cables Limited Q4FY26 earnings conference call hosted by Philip Capital India Private Limited. As a reminder, all participant 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 this conference call, please signal an operator by pressing Star then zero on your touch tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr.
Pranesha from Phillips Capital. Thank you. And over to you Mr. Shah.
Pranesha — Analyst
Thank you, Neera. Good afternoon everyone. On behalf of Philip Capital, I welcome all of you to the fourth quarter and FY26 earnings conference call of Dynamic Cables Limited. From the management side we have Mr. Ashish Mangal, Managing Director, Mr. Murari Lal Podar, Chief Financial Officer and Mr. Govind Sabo, IR Advisor. I request the team to give their opening remarks which we shall open the floor for Q and A. Thank you. And over to you sir. Good afternoon everyone. I, Ashish Manuel, Managing Director of the NV Cables extend a warm welcome to all of your earning call.
I am pleased to report a steady operational and financial performance for the quarter and the full financial year. Despite a volatile macroeconomic environment and continued uncertainty in the global markets, the company delivered a healthy performance during this year reflecting disciplined execution, operational resilience and prudent financial management. Also, there was a marked reduction in financial costs resulting from continued financial discipline and lower interest charges driven by credit rating enhancement during the financial year.
We remain focused on our core value added products which contributed to improved profitability and stronger operating performance. Our order book continues to witness healthy traction during the quarter supported by strong customer relationship and sustained demand across key power related segments. This reinforces our confidence in the long term opportunities emerging in the Indian Power T and D ecosystem. During the year, Company further strengthened its industry positioning to enhance product capabilities, new customer approvals and continued focus on quality and execution standards.
These efforts will enable us to participate in higher value opportunities across key business segments. On the capacity expansion front, project implementation has picked up pace following receptors key statutory approval. While the project implementation witnessed delays due to approval related timelines and disruption in imported machinery deliveries arising from the ongoing Iran war related logistics situations. The new capabilities will be available ahead of the seasonally stronger second half of FY27.
We remain focused on disciplined execution, profitability and prudent capital allocation. Healthy order books, stronger customer relationships and a robust execution framework. We are confident in our ability to capitalize on the long term opportunities in the sector sustains steady growth and create long term value for all stakeholders. With that I Now invite our CFO Mr. Podar to share the financial highlights for the quarter. Good afternoon to all. We are pleased to report a healthy financial performance achieving our ISA revenue and profitability during FY26, revenue grew by 17% while while operating profit increased by 23% to Rs.130 crore supported by improved operating leverage and a better product list.
Operating margin improved to 10.8% reflecting enhanced operational efficiency. Profit after tax rose by 30% to 84 crore driven by disciplined execution, strong business momentum and prudent financial management. Customer wise contribution NFI 26 was around government sales 13% private sales 80% export 7% product wise contribution FY26 was HV cable 64% LV cable 30% conductor 6% as of the first March 2026. Our order book stand at INR 808cr providing strong revenue visibility. Thank you and we are now open for questions.
Operator
Thank you very much. We now begin with the question and answer session. Anyone who wishes to ask a question May Press Star N1 on the test and telephone. If you wish to remove yourself from the question queue, you must press star N2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the questions. Listen. First question is from brand of Piyush Selvadasani from Sundram Aldrich. Please go ahead.
Questions and Answers:
Piyush Sevaldasani
Yes. Hi sir. Thank you for the opportunity. So my first question is on the growth for fourth quarter which looks on the softer side. Can you help me understand how much has been the volume growth in this quarter and how much has been the realization growth?
Pranesha
I think there is some disturbance from your side maybe. Is this better? Can you hear me? Just one second. Hold on.
Ashish Mangal
There is some heat actually coming continuously. Yeah. Now
Pranesha
Is it better?
Operator
Yeah, we are able to clear, sir. Yes, sir.
Pranesha
Yes. Yes. So yeah, basically just to give a context of growth which you were. You were asking. So in Q4, our core product growth has been 30%. Whereas the Q4 growth which we overall growth of 7% during the quarter. The largely the difference between 7% and 20%
Piyush Sevaldasani
Is
Pranesha
Basically our low value add low voltage conductors and railway signaling cables which we have discontinued this year. So if we adjust these two items and our core products which are our power cables, renewable cables, LVHV cables which and our niche conductors which we manufacture other niche products. So if you adjust that it is around 20% and with regard to the price growth I mean the composition of volume versus price increase, 8% growth is attributable to the material price inflation and balance is basically volume growth.
So this is what is the composition of our growth. So sorry, so 8% is for the full year. For quarter four it is 12%.
Piyush Sevaldasani
So for the quarter 12% is the realization growth and 8% volume growth. And we. And you are saying that we have discontinued this conductor and railway cables
Pranesha
Going forward Cable we have discontinued for now because as we have been always discussing this over last 3, 4, 5 quarters that railway signaling we feel that competitive intensity is very high and it is better to move on to our power cable products where demand scenario is much better and margin profile is much better. So it is better to kind of dedicate our operating facility and production capacity to higher margin products where profitability is high rather than the low value. Add the low profitable products which are the low voltage conductors and railway signaling cables.
So how much was contribution for the cables for full year? FY26. And like how do we plan to compensate for that going Forward? Yes. So FY26 the relay signaling cable was zero. Okay. And in FY25 it was 4% contribution.
Ashish Mangal
You are saying this for fourth quarter, right? Fourth quarter it was zero.
Pranesha
Full year it was zero.
Piyush Sevaldasani
Okay, Sure. And so just on this capex which has been delayed, so now we are expecting that to come in the second half. So how should we think about growth in FY27? Would it be largely
Pranesha
Flattish in first half and growth to resume in second half or so? Yes. So basically first of all, let me give you. I mean there has been a delay in the capex. So there is no two doubts about it and the growth it will. I mean the new plant is going to start its production in September 27th. So September 26th. I’m so sorry, September 26th it will start the production. So when the heavy half, which is seasonally heavy half is the second half. So we will be having our capacity which in the second half of our of the financial year.
And I think H1 Growth will be managing from our existing facility. So this is the growth color. I mean this is the growth outlook which we can give as of today.
Piyush Sevaldasani
But any guidance for FY27,
Pranesha
We have never been giving yearly guidances. We have always been giving a long term guidance of 18 to 20% growth which we have also delivered in the past. And we still believe that for a long, medium to long term the company will deliver the same kind of growth in future. Also
Piyush Sevaldasani
I’m asking because Our order book also has only grown by 18%
Pranesha
And given the pricing increase, I’m assuming volume growth is not there any reasons for this case. So I, I that’s what in FY25 our core product growth has been 25% and if we adjust the 7,8% of inflation growth we get around 17,18% of volume growth for core products. I was asking about order book. Order book also has grown only by 11%. That looks slightly on weakest. So basically because of this price volatility. So typically in the industry there is some deferment of order booking or any kind of sales booking or order booking when there is such a sudden increase in our raw material prices.
So you we all know what has happened in the month of March and so there has been a deferment of order booking from March in the month of March because of the sudden spike in the prices of aluminium and PVC which are our key raw materials. Okay, sure. This last question. In this quarter we have also seen gross margins going down. Any specific reason for that? It’s 17.9 for gross margin. I mean you have to look at operating profit is the right measure actually because gross profit mean there is lot of, there are a lot of elements which come and go by and it all depends on the product mix, customer mix, which market we are selling to.
So there is lot of there may be slight variation here and there in the gross profit, but at the operating profit level I think we have been steady and we have always guided an operating profit of anywhere between 10.5 to 11% all throughout the year. That is what we have delivered also. That’s clear. That’s it from
Piyush Sevaldasani
My side. Thank you sir and all the best.
Pranesha
Yes, thank you.
Operator
Thank you. Next question is from the line of Yash from Oregon Capital Advisors. Please go ahead.
Piyush Sevaldasani
Hi, thank you for taking my question. So over the last four years I
Pranesha
Can see the CapEx intensity has gone up. What you spent in nearly three years you spent in FY26. So will this trajectory of higher CapEx continue for FY27 and the medium term? So FY26 I yes, we as you know that we had initiated setting up of a greenfield plant and whenever there is a greenfield plant which is being set up, you get the initial CAPEX is always high. Brownfield expansions typically are kind of less heavy on the CAPEX side and that is what is the reason for increase in the CapEx in FY26 going forward in FY27 or probably in the medium term you can say There would be capital expenditures each and every year because growth will demand capex.
It may not be as intense as it was in FY26 but yes, relatively probably because the base is also increasing. So to keep up the growth numbers we’ll have to, we’ll have to continue our CapEx.
Piyush Sevaldasani
Okay so because if you see the peers, every year they are reporting bigger and bigger capex and even they’re talking about bigger capex. So I presume it should be the same case for you as well because you’re still at around 85, 90% of utilization.
Pranesha
Yes, that’s what I was saying that because at the industry level only the base is increasing and to keep up with the growth trajectory we will have to maintain our CAPEX program or we have to continue with our CAPEX program year on year.
Piyush Sevaldasani
Okay. And on the plant, sir, there’s been significant delay in Q4, FY25. You mentioned that you’re on track to
Pranesha
Commission it in Q2, FY26 and you also mentioned that you can set up new capacities within 9 to 18 months. But here there has been delay of around 15 months since what you targeted. So can you speak more about it? Can you speak more about it? What the reasons for the delay have been? Right. So basically there are three major reasons for the delay. One is that there was some government basically regulatory body approvals which, which were delayed and that basically delayed the, I mean starting of the project implementation itself.
And secondly, there were some import machineries which, which got delayed because of this freight related issue of late after Iran war. And thirdly there are some, there were some, there were some compliance requirements which from the ERB board which we need to kind of comply with. And so these all reasons compounded for the delay of this plant. But I’m happy to report, I think that the plant is now in the final implementation stages and we have got most of the machines and civil work getting done and probably next three, four months we would be in a position to kind of start our trial productions.
Piyush Sevaldasani
Okay, thank you. I’ll get back.
Pranesha
Yes,
Operator
Thank you. Next question is from the line of Nitin Jain from Fair Value Equity Advisors. Please go ahead.
Piyush Sevaldasani
Yeah, thank you for the opportunity. My first question is around the revenue. Nitin, sorry
Operator
To interrupt you. Can you speak through the handset please?
Piyush Sevaldasani
Hello, can you hear me now?
Operator
Yes, go ahead.
Piyush Sevaldasani
So my first question is on the revenue growth. As you can see it is like the slowest in many quarters. And as you have clarified the railway cables have been discontinued for more than a year. Now besides we had an order book starting order book of around 790 crores at the beginning of Q4. So what exactly is the reason of this slow execution?
Ashish Mangal
I didn’t understand the question. So you are saying that.
Piyush Sevaldasani
No, I’m saying that the revenue growth has been slowest in last many quarters.
Ashish Mangal
Right.
Piyush Sevaldasani
And you pointed out that railway cable has been discontinued for a year now.
Pranesha
Right?
Piyush Sevaldasani
Yeah. So what is the reason of the slow execution this quarter?
Pranesha
So basically there are two, three reasons. Nitin, I would like to, I would like to just kind of highlight that. I mean if you look at quarterly basis it is really difficult to kind of do because last quarter we started this quarter with a very heavy base, with a very high base. I think last year Q4 our growth was around 38, 39% kind of. So it was, it was a very heavy base we started off with. Second reason was as I told you, that there was lot of disruptions and deferment of supplies due to immediate rise in raw material prices.
And that is why, that is what led to deferment of sales and order booking which I have already clarified in our earlier discussion also with the earlier participant. And if you adjust, and third impact was if you adjust the low voltage conductors and railway signaling cables, our Q4 growth would be 20 is 20%. So that is what, these are the kind of explanations for your question.
Piyush Sevaldasani
Right. So just follow up on that. The volatility in the supplies that you mentioned, has it improved now or has it worsened? Because the situation is still the same what it was in February, March. So yes,
Pranesha
Basically the prices have not come down as we all know, aluminum prices are elevated, PVC prices are elevated. But what happens is that acceptance of the market gradually starts kicking in. So that is what happens whenever there is such a disruption because that is kind of the reality which we have to face. So whenever there is a start of such disruption of such magnitude, at the start of the disruption there is definitely a fear and scare or deferment which leads to deferment of consumption. But gradually the acceptance also starts kicking in.
So these are the two factors which are being observed in the market at present.
Piyush Sevaldasani
My next question is on the net debt. As you have clarified in the press release, it has jumped up significantly quarter on quarter. So what is, and.
Operator
Can you please be hands head.
Piyush Sevaldasani
Yeah, just a minute.
Pranesha
Yes, yes, yes,
Piyush Sevaldasani
Hello.
Pranesha
Yeah, yeah it is. Yeah, can you hear me?
Piyush Sevaldasani
Okay. Okay. Right. So sir, our capacity expansion has not gone live yet but our net debt has increased significantly quarter on quarter. So what is the reason for that. And as a result of this, should we see a jump in finance costs again going forward?
Pranesha
The entire borrowing which you look at is our working capital borrowings. So it all depends on the seasonality. March is a heavy quarter for all the cable manufacturers and so there has been a slight increase of debt in our, in our, in our books. And also if you look at our on books debt, it has kind of reduced from 66 crores to 40 crores. So nothing too kind of. It’s a very routine kind of thing which happens.
Piyush Sevaldasani
Right. But should we see a jump in finance cost now going forward?
Pranesha
I don’t think so.
Piyush Sevaldasani
Okay. And sir, management has like clarified in the past that you have 100% pass through of costs as far as raw material costs are concerned. But still this quarter there is a significant margin drop at the gross margin level. So what would you
Pranesha
Again sir, I’m again rediscussing this part that you have to look at. We have to look at the operating profit level because there are a lot of components at the gross level. So there can be 1 or 2% variation on a quarter on quarter basis. So that’s not the right way to look at it because our revenue mix keeps on changing each quarter. So that is not the right parameter to look at. There is freight and other components which kind of come and go based on the customer, based on the market, based on the product and all the other things.
So this is, this is I think it. And with regard to pass through we still believe that we, I mean we again restate our original conversation that most of our orders are having price variations for and it is a customer. There are certain orders which are at the firm price basis also. But those firm price basis we kind of hedge that raw material at the time of order booking itself. So largely the price volatility doesn’t have a much bearing on our, in our business model. Our raw material price volatility does not have much bearing on our business model.
Thank you.
Piyush Sevaldasani
And my last question is on the capacity expansion, sir. So we know that order booking and capacity expansion are interlinked. So the fact that our capacity expansion is being postponed, is it one of the reasons why our order book growth has also slowed down quarter on quarter?
Pranesha
I don’t think this is the right way to look at order booking. Order booking is largely, I mean again I have to repeat the same thing again and again. Since March month per se, there was a large volatility in our materials and therefore our pricing also increased, suddenly increased. And that is why A lot of our customers kind of take a step back and defer their purchases. It’s a normal phenomenon and that does happen whenever there is such kind of volatility in the market. We are into the B2B market and where there is always an option with the customer to kind of time its purchases according to the scenario demand requirement.
Piyush Sevaldasani
Just a follow up to that, sir. So there is no definite date of goal line for the capacity expansion this time. So. But you have definitive
Pranesha
One second. There is no definitive date. But yes, we are, we are, we are kind of guiding that based on the developments at the site level, at the plant level, we should be able to go live by September.
Piyush Sevaldasani
Right. But what you have ascribed the this thing, the reason for importing the machinery, the Iran war, the situation is still same, sir, like in West Asia. So why do you think we will be able to go live this time like by before the second half?
Pranesha
Because I mean that’s what I was saying that based on the site developments, the way the work is going on, the implementation is going on this time we are guiding or we believe that we should be able to go live by September.
Piyush Sevaldasani
Okay, thank you.
Operator
Thank you. Next question is from the line of Nikhil Purohit from Freedom Asset Management. Please go ahead.
Piyush Sevaldasani
Hi. Am I audible?
Operator
Yeah,
Piyush Sevaldasani
Yeah. Thanks for the opportunity. So what was the volume growth separately in cables and conductors? Separately
Pranesha
In cables and conductors. So conductors, as I told you that there was a degrowth which, which we have discussed in the past also on cable standalone basis. I think on a yearly basis it was around 18%
Piyush Sevaldasani
And quarter four.
Pranesha
Quarter four. It should be around high single digit kind of.
Piyush Sevaldasani
In cables.
Pranesha
In cables, yes.
Piyush Sevaldasani
Okay. And what percentage. You mentioned that low voltage conductors have been discontinued. Railways were already discontinued. So what percentage of sales is low voltage conductors in the total revenue for the entire year? FY26,
Pranesha
I think it is now sub 5% kind of.
Piyush Sevaldasani
5%?
Pranesha
Yeah. Last year it was I think 8, 9% which has now come down to sub 5%. So there was around 50, 60%, 50% kind of volume decrease in our low cost conductors.
Piyush Sevaldasani
Okay, okay. And just understanding of the capacity utilization side, so we were at 75%, 75 to 80% in quarter three. We were quite comfortable with that position in March also. Now of course there have been order delays like, like you mentioned earlier. But for H1FY27, do we see any problems in terms of capacity? Because we’re already at one of the peaks. I mean how will we able to get growth in H1FY27.
Pranesha
Yeah, we have managed the seasonally and the high season Q4 and Q3 last year. And so I think we are quite confident to manage the Q1 and Q2. Also this is our order book and I think when the peak season kind of kicks in in Q3 and Q4, we would be ready with our capacity, new capacities as well. So that is how exactly.
Piyush Sevaldasani
So H2 is. H2 is okay because September 2026 the capacity ideally should come on. But for H1 then we are already at the peak.
Pranesha
So what I am saying is that our current capacities are sufficient for kind of our H1 order book and H1 business projections or growth which we are kind of anticipating.
Piyush Sevaldasani
Okay. Okay. And this last question on the other expenses, how did we control these to such an extent? Just 4.1% of sales. And also on the employee expenses, we had indicated that the last quarter generally has higher incentives, higher bonuses given out. But here also there’s a decline here on your. If you could explain these. Plus how do we understand we are going to survive?
Pranesha
Perfect. Perfect. So first I’ll take the employee expenses. So employee expenses as I told you that. I mean I have not told you, but I am telling you that last year there were some one time bonus and incentives which were declared in the month of March itself. So that booking was there in the base which was rationalized during this year and it was kind of amortized during the year. So that is why it’s not a decline as such. It is just proper way of accounting the expenditure. So that is what has led to employee expenditure.
Optically this looks as a decline, but there is no decrease in our workforce as well as our employee, I mean employee salary or employee compensation as such. It is just that the accounting of. If you look at the last year, last year quarterly breakup of employee expenses, there was a sudden spurt in Q4 which has now been normalized in the current year. So that is the reason for employee benefit and other expenses. We have. I mean we have been discussing that there is always a trade off between gross profit margin and other expenses based on the product mix, market mix, geographical mix and all those things which kind of happening because there are a lot of direct expenses like freight and other components which sometimes in some business contracts are borne by us and in some contract it’s borne by the customer.
So it keeps on varying on that part. So it is better to look at our company’s operating performance at a operating profit or EBITDA level rather than gross profit and. Thanks.
Piyush Sevaldasani
Got it, sir. Okay, thank
Pranesha
You.
Operator
Thank you. Next question is from the line of Pranav Jain from Ageless Capital. Please go ahead.
Piyush Sevaldasani
Hi sir. Thanks for the opportunity. I hope I’m audible. So with respect to the TS Conductor Corp. Announcement that we put out, can you talk more about that? What are what the commercials look like? What kind of incremental revenues can we possibly get from that approvals? How much time will they take for the HTLS virus? Just a little more on that.
Pranesha
Yes, we have given quite a detailed press release on this TS conductors development with our company. So it is basically stepping stone or basically a starting step to venture into this high voltage conductor market for our company. Because the carbon core technology which has recently got adopted by the utilities and is now we believe that in future can become quite relevant in the entire transmission ecosystem of our country and to initiate our entry into this high voltage conductor market which again there are very few players who have such kind of tie ups core tires because the core technology is limited to few players only across the globe.
So there are very few players manufacturers in India who have such kind of tire. And with this tire now in place, we can actually go to our customers, take our product approvals or take the approval, do type testing of our products and basically convert them into some orders and see this business sales revenue. So it is a starting step into that direction. There is no hard timeline that when this would materialize into revenue and but yes, intent is very clear and we believe that. It is a very niche, I mean a futuristic product and which would be adopted by the utilities as a solution to this vertical expansion in the power infrastructure.
Piyush Sevaldasani
Just to understand how did we end up, you know, getting this agreement or getting into this agreement with TS Conductor corporate, like how did it come to be.
Pranesha
So it is. So we have been in the search for such kind of tie ups and the, I mean our team was in touch with these technology providers and finally we got a breakthrough with TS Conductors.
Piyush Sevaldasani
Initially the agreement is for a year. So can we expect anything to happen within a year’s time or most of the,
Pranesha
I mean it has a renewable clause. So that’s not a very big challenge because initially it’s just that there are a product, we are able to manufacture the product that we get a positive type test of the product which is manufactured. So all that process will take around a year’s time.
Piyush Sevaldasani
All right, so that’s it from my end. Thank you.
Operator
Thank you. Next question is from the line of Anuj Harya from Interglobe Services. Please go ahead.
Pranesha
Hi, my Questions are continuing the previous participants questions for the TS Conductor partnership, do we need to incur any additional CapEx? Let’s
Piyush Sevaldasani
Say once the products get approved six months or one year down the line, do we need to incur any additional CapEx to manufacture the products?
Pranesha
Not much because our existing facility can be used to much of the extent for the manufacturing of the actual conductors if some slight technological advancement or updates need to be done. It is not a very big, it will not be a very big CapEx incrementally.
Piyush Sevaldasani
Okay, and you mentioned before that we have approximately 17 to 20,000 square meters of land available. So could you give a brief idea on the next CapEx that we plan to do? Will it be more than the 40 crores that we are incurring right now or it will be on the same scale or lower scale?
Pranesha
So we are now basically concentrating on completing our existing capex because we are already delayed in that on that part the next set of capex is not crystallized yet. So it will not be in all fairness it’s not the right to kind of give any guidance. But yes, as I have guided to or we have discussed with earlier participants also that there would be incremental capex which would be coming up to keep pace of our growth momentum. So that is the intent is there. Directionally there would be additional capex but how much when where these things currently are not decided and I think it will be difficult for us to discuss.
Piyush Sevaldasani
Okay, just another, if you will just give me the breakup basically in quarter four of FY26 and throughout the year. FY26, could you just give me the percentage of sales from solar cables?
Pranesha
I have a full year number as of now. Okay, Full year number is around 18%.
Piyush Sevaldasani
Okay. And what was it last year? If you could just tell me.
Pranesha
Last year it was 105 crores. So basically in percentage terms it was 10%.
Piyush Sevaldasani
Okay. Okay. And and this year based on the, based on FY27 numbers, do you expect the share to increase, increase or remain the same?
Pranesha
I think it should increase marginally. So from 18% it can go up to anywhere between 20 to 23%. Kind of should be the, should be the incremental share which should come.
Piyush Sevaldasani
But my final questions around basically as you mentioned that there was some deferment of order booking in the month of March. It is quite obvious. But let’s say in the first 40 to 45 days of this financial in April and May are you seeing a change in mindset of people where customers are going ahead with order booking or what’s the trajectory you’re seeing right now?
Pranesha
Yes, there is an acceptance which we discussed with earlier participants. Also there is an acceptance of the higher raw material prices. And I also feel that there is some, I mean given the criticality of the power infrastructure, it cannot be deferred beyond a point. So because the power consumption is increasing, particularly in the summer where grid has become heavy, the distribution infrastructure is under stress. So it cannot be deferred for a very long time. That is the sense which we have from the market.
Piyush Sevaldasani
Okay, okay, thank you. That will be also nice.
Operator
Thank you. Next follow up question is from the line of Yash from Oregon Capital Advisors. Please go ahead.
Pranesha
Hi, thank you for taking my question again. I wanted to ask that when would this new capacity be ramped
Piyush Sevaldasani
Up at full utilization levels?
Pranesha
We would like to ramp up as early as possible. Again it’s very very difficult to kind of give a very hard timeline because presently it has not come live. So to kind of envisage would not be is very very difficult. But yes, I think we would like to, once it is live we would like to ramp it up as soon as possible. So opportunity wise I don’t think there is a problem because the EDM technology which is being, which the new facility will have and renewable cable or solar cables which we are, the market is huge, DC cables and all those things.
So basically on all the sites there is no dearth of opportunity and we would like to ramp it up as soon as possible.
Piyush Sevaldasani
Okay, last one, I do see that you’ve got a corporate guarantee from Indo Crates and Also in your PPT you’ve mentioned that Mr. Mangal is solely focused on managing dynamic cables. So just to confirm Mr. Mangal is not looking after any other business and dynamic cable is only a focus area.
Pranesha
Yes. So basically Indocrat is just a property holding company. It is, it does not have any operations as such, any business operations and also that guarantee is also now withdrawn. So basically no. Okay, thank you.
Operator
Thank you. Next question is from the line of course from Nexus Equity. Please go ahead.
Piyush Sevaldasani
Hello. Yeah, thanks for the opportunity. So sir, so I have questions on the future guidance and so basically you just mentioned that you we should be able to commence the operation from new plant in the second half of this year. So, so just to look at the numbers so in H1 of this FY27 so would we able to see growth comparing the same number to action of FY26. So H1FY27 versus H1FY26 and then follow up is on the full year guidance for FY27.
Pranesha
So we have, we don’t have a practice of giving any guidance short term guidances in a medium to long term. We have been growing at 18 to 20% growth rate which in the past also and which should continue in the future also. So we don’t, we don’t have any practice of giving any short term guidance.
Piyush Sevaldasani
Okay, thank
Pranesha
You.
Operator
Thank you. Next follow up question is from the line of Nikhil from Feed and Asset Management. Please go ahead. Yes.
Piyush Sevaldasani
Yeah, thanks for the opportunity again
Pranesha
Sir. Not clear.
Piyush Sevaldasani
Is it clear now?
Pranesha
Yeah, yeah, much better.
Piyush Sevaldasani
Yeah. So. So if just on the gross margin side, I am aware you said you look at the EBITDA, but if our core products have grown 20% then gross margin should improve year on year. Right. Considering these are higher margin products versus something like lower value conductors which we have actually discontinued even railway cables. So why the gross margin?
Pranesha
That’s what I am saying sir. Again and again you should not look at quarter on quarter. It’s very, very difficult to kind of provide any kind of explanation on a quarter on quarter basis. If you look at, on our yearly numbers you will see the improvement at the gross profit level also and across the corresponding improvement at the operating profit level also. Because again. It’s very, very difficult to explain half a percent or 1% variation at the gross profit level and operating profit or the other expensive level because both are interchangeable.
There are a lot of direct expenses which go into other expenses and when we do our pricing or when we do our costing in that some part of our direct expenses and our raw material expenses both are included.
Piyush Sevaldasani
Okay, just last question. We continue to expect 1.5 times industry growth in FY27.
Pranesha
We should be able to do it
Piyush Sevaldasani
So our long term 18 to 20% remains intact.
Pranesha
Yes, yes, yes, yes.
Piyush Sevaldasani
All right, thank you.
Operator
Thank you. Next question is from line of Khadija Mantri from K3 Global. Please go ahead.
Unidentified Participant
Hello.
Operator
Yes, go ahead.
Unidentified Participant
Sir. I just wanted to know that in FY26 did we have any substantial. And going forward also will we be focusing on exports or given the that we have capacity constraint in the first half would ideally be focusing on domestic market only.
Pranesha
Export was. I mean export was. There was a slight degrowth in FY26 exports as compared to FY25. Again the reason was in this March quarter, in the March month the exports were typically zero, non existent. And that was the reason why there was a degrowth in our export value as well. Our focus on export is always there and will be there. We have always maintained that we intend to grow our stock share of export within our overall revenue contribution. However, because of unfortunately in FY26 earlier there was some tariff problem which kind of delayed our US plans.
US entry plans which we are now re establishing again. And that should have a critical, that should give a. Give a critical boost to our exposure export program. And also the domestic market scenario is very very conducive as of now. So it’s always. I mean we want to catch the low hanging fruits first rather than to go on the export front. So. Yes, but we believe that our export share on a long term basis should hit 10% and should increase 250% kind of level in the long medium to long term.
Unidentified Participant
Okay sir, and also this capex of 40 crore. What is the peak revenue potential? It would be 5 times asset turn you can assume.
Pranesha
Yeah, I think we gradually, we typically do six to seven times our asset terms. So yes, five times is a very, I mean reasonable assumption to ask.
Unidentified Participant
Okay. And sir, also for this HTLS conductor do we have capacity to cater to this segment in FY27 in case there is any opportunity?
Pranesha
The problem is not of capacity. It is more related to the type testing and approvals which will have its own process time and we are, which we will have to navigate as we go into, we step into FY27.
Unidentified Participant
Okay so assuming that we get the. The products gets type tested in FY27 maybe in the first half then we will be able to deliver it from our current capacity in the second half.
Pranesha
Yeah, yeah, yeah. So if, I mean if approvals are there and if we are competitive in the bids.
Unidentified Participant
So it’s fungible, the capacity is fungible. That is what I wanted.
Pranesha
Yes, yes. The process is almost the same. The core changes, that’s all
Unidentified Participant
The core
Pranesha
Technology changes. Yes. Yes.
Unidentified Participant
Okay. So 18 to 20% growth that we are guiding. It’s a value growth or it is largely in terms of volume growth.
Pranesha
I mean we typically give a value growth guidance only. So that is what it is. And it’s not a single year guidance. So it is a multi year guidance.
Unidentified Participant
Okay sir, I understand. Thanks. And all the rest.
Pranesha
Yes,
Operator
Thank you. Next question is from the line of N. Jain from Fair Value Equity Advisory. Please go ahead.
Piyush Sevaldasani
Yeah, thank you for the follow opportunity. What kind of margins do we have there? Are they above company average or in line with the company average? How is it
Pranesha
In line with the company average?
Piyush Sevaldasani
Regarding the PGCIL approval, how is it helping us increasing the addressable market like will it help us with bigger orders or how exactly is beneficial to the company.
Pranesha
So as I was telling you that these are all stepping stones or starting steps for us to enter this high voltage conductor market. Whether it is the PVCL approval or whether you look at this technology, co technology tie up, all these things are starting steps for us to explore this high voltage conductor market. Because we believe that in the future it is going to be the vertical expansion of the power. TND is going to be a huge opportunity for product manufacturers like us. And if we are able to supply the right kind of product in the market at the right time, it would be value accretive for us as a company.
So this is. These are all. This is the idea and I would say the thought process behind all these things, behind all the development.
Piyush Sevaldasani
Right. And last question is on the US opportunity now that the tariff situation is more or less behind us, it has dropped from 50% to about 20%. Now how are we exploring this opportunity? Is it through the TS conductor tie up or is there anything else that we’re looking at?
Pranesha
TS conduct is not for US market. It is more to do with the domestic market. US market has to. We are re establishing our links with the distributors because it is completely distributed market in the. In the US and we are. And because of this tariff related disruption there was a gap of around six to eight months in between where all the interest of the US distributors to procure from India had dried up. So now when the tariffs have gone away and now there is some policy, policy stability in the US from the US government.
We are trying to re establish our US connects and with the distributors and trying to. Basically we have to start afresh in terms of our go to market strategy. We have started afresh I should say.
Piyush Sevaldasani
Okay, you have started a fresh already.
Pranesha
Yes, yes, yes. Should we see any contribution in FY27 from this or.
Piyush Sevaldasani
Too early to comment.
Pranesha
There should be some contribution. How much it would be. It’s too early for us to comment on. Correct. Thank you and all the best.
Operator
Thank you. Next follow up question is from Orga Capital Advisors. Please go ahead.
Pranesha
Hi. Recently mentioned about getting into wire as well for B2B business only. I understand that there are many players in wire business already. So how would you be standing out? Yes. So basically again there are two differences. Wire managed in the wire business there are two kinds of market. One is the D. B2C distribution led market and one is the B2B market which is a principal to principal market. We again it is. I mean again I would like to clarify that we do not wish to focus on the B2C distribution led wire market.
We will confine ourselves to the B2B wire market and leverage our. Existing DNA because in trailers we are already a B2B supplier of the B2B cas and would like to leverage those relationships, those markets, those institutional supply capabilities. So it’s just an additional add on product which we have introduced in our bouquet of cables.
Piyush Sevaldasani
Margins and ROC profile would be similar to what your existing
Pranesha
Too early. But yes it should. I mean given our. Given our intent to be financed to maintain our discipline, it should remain. Okay, that’s all. Thank you. Yeah,
Operator
Thank you. Next question is from the line of J Meta from Alios Financial Service. Please go ahead.
Piyush Sevaldasani
Okay.
Operator
Jay, can you hear us?
Piyush Sevaldasani
Yeah, I can hear you. Can you hear me?
Pranesha
Yes, yes please.
Piyush Sevaldasani
So I want to know what is the capacity utilization right now?
Pranesha
So we, I mean capacity wise we have guided for the peak capacity utilization to be around 135 crores a month. That is, that is the turnover capacity which we have guided at our peak level. Optimally we being a cyclical business, we are and also customized production product we are manufacturing we should be able to optimally utilize around 85 to 90% of our capacities. This is the idea which I can give you
Piyush Sevaldasani
The 135 color number which you gave at that time the commodity prices were last year was like what 50% lower than current light. So the commodity prices have risen like exponentially in the last 78 months. So won’t that number change?
Pranesha
It should change. I mean again I’m. What I’m trying to say is that. But we don’t, we can’t reassess our capacities now and then largely and it’s very very difficult to kind of predict the commodity prices. So it would have been that number might have increased but at the time of last assessment which we did, it was 135.
Piyush Sevaldasani
Okay so okay, so for the Greenfield I I believe you did capex of roughly 40 odd crore and for that you will died in 6x turnover in last quarter. In last to last quarter maybe.
Pranesha
Right.
Piyush Sevaldasani
Since then also the commodity prices are low so by 50%. Is it reasonable to assume that
Pranesha
Again, Again sir, I have no prediction of the commodity price. It has increased by 50%. It can decrease by 50% by the year end. So I have no clue on the commodity price what we do. But I was saying what the idea which I can give you is that amongst all the commodity cycles in last 10 years we have been able to. Our average asset turn has been around six times. That is. That is the guidance which I can give you for future. Also for some quarters it can be higher for other quarter. There is no clue which anybody has on the commodity prices or the movement of commodity prices.
Piyush Sevaldasani
And there was some R and D you you mentioned about under Data center case you will in discussion with few contractors and things like that. So any update on that?
Pranesha
That is an ongoing process and as we discussed in the last call also that it’s not a 1/4 or 2/4 phenomena because data center has a lot of other things to other parameters also. Yeah, it is a very, very starting phase of the industry and there is lot of evolutionary challenges which they are facing. So it will take time and it’s really difficult guidance or a quarterly update on such kind of trends.
Operator
Thank you ladies and gentlemen. We will take that as a last question and now hand the conference over to the management for closing comments.
Pranesha
Thank you. Thank you all the investors and thank you Faith and trust in us. So we look forward to hear from you soon. With all my assurances. Thank you.
Operator
Thank you very much on behalf of Philip Chapel India Private Limited. That concludes this conference. Thank you for joining us. And you may now disconnect. Thank you.