Systematic Industries: The OPGW opportunity vs the revenue lag
The first Power Grid order is a milestone, but FY28 is when new verticals start to matter; near-term growth rests on legacy steel.
The numbers
- Won first EPC order from Power Grid for the Agra-Khumber OPGW project – entry into utility transmission.
- Flags a pipeline of ₹1,000+ cr in OPGW tenders over the next year.
- FY26 revenue ₹552.51 cr, 23.7% growth; legacy steel still 97% of total.
- Net debt-free balance sheet post-IPO enables self-funded capex.
Management's story
- "First order from Power Grid positions us to participate in upcoming tenders estimated at around 1,000 crores" – Siddharth Agarwal, MD.
- "OPGW and OFC margins are expected in double digits versus single-digit legacy steel" – management.
- Targets revenue growth acceleration beyond historical 25% CAGR.
- New-age businesses expected to deliver substantial revenue only by March 2028.
- Capex to increase in FY27, but quantum undisclosed.
“We received our first order from Power Grid for the Agra-Khumber OPGW project, positioning us to participate in upcoming tenders estimated at around 1,000 crores.”
— Siddharth Agarwal, MD
Where they diverge
Management's ₹1,000 cr pipeline and double-digit margin projections are aspirational – FY26 saw zero revenue from OPGW or OFC. Legacy steel, with single-digit margins and 97% of revenue, remains the cash engine. The net debt-free balance sheet buys time, but the absence of a concrete FY27 capex figure and a FY28 timeline for material new-business revenue create a chasm between narrative and near-term financial reality.
The full read
Systematic Industries' first Power Grid OPGW order is a strategic milestone, but the revenue story remains years away. The ₹1,000+ cr tender pipeline is large relative to FY26 revenue of ₹552.51 cr, but nearly all of that revenue still comes from legacy steel wire growing at 24% with single-digit margins. Management expects growth acceleration beyond 25% and double-digit margins from new verticals, yet guides that OPGW and OFC will be 'substantial' only by March 2028. The net debt-free balance sheet from the December IPO provides a capex buffer, but the quantum of FY27 investment remains undisclosed. The key quote from MD Siddharth Agarwal – "We received our first order from Power Grid for the Agra-Khumber OPGW project, positioning us to participate in upcoming tenders estimated at around 1,000 crores" – captures the bridge: the pipeline is real, the order is a foothold, but execution will determine if Systematic becomes a diversified infrastructure play or remains a steel company with a side project.
What we're watching
- Conversion of the ₹1,000+ cr OPGW pipeline into firm orders over the next 2–3 quarters.
- FY27 capex announcement – quantum and allocation to OPGW/OFC capacity.
- Commercial impact of RDSO and BSNL approvals; data centre trial orders converting to contracts.
- Legacy steel margin trajectory amid raw material inflation and rupee depreciation.