Prime Cable Inds. maps 45% annual growth to new capacity
The company targets 45% revenue growth over two years as it transitions from low-voltage cables into higher-margin medium-voltage products.
What's new
- FY26 revenue grew 67% to ₹234.9 cr, while EBITDA increased 60% to ₹23.5 cr.
- Order book stands at ₹191 cr, providing four to six months of revenue visibility.
- Management guides for 40-45% annual revenue growth through FY28.
Key quotes
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"We aspire to deliver revenue growth of approximately 45% over the next two years."
— Nikunj Singla, Whole Time Director
The brief
Prime Cable Inds. is scaling aggressively. After a 67% revenue jump in FY26, the company is betting on a product mix shift to sustain that pace. By moving from low-voltage to medium-voltage cables (3.3 KV to 33 KV), management expects margins to climb from 10% toward 13%. That pivot is capital-intensive. The new Ghelot facility, with a ₹150 cr capacity, starts in Q2 FY27. While demand remains strong, the company faces a structural liquidity hurdle. Government utility clients keep the working capital cycle at 81 days. Reliance on private EPC contracts, which pay in 45-60 days, is the only plan to normalize these cycles. Near-term margins will likely stay muted at 10-11% as the new medium-voltage factory ramps up at 28% utilization. The execution plan relies on high capex and a shift in customer profile. It's a classic high-growth play with a cash-flow caveat.
Prime Cable's growth math is sound, but its success rests entirely on thinning the government-heavy receivables backlog.