Systematic Industries' first Power Grid OPGW order opens ₹1,000 crore pipeline
First EPC contract from Power Grid launches new-age OPGW and OFC businesses; management targets accelerated growth post-IPO while legacy steel wire provides stable baseline.
What's new
- Received first Power Grid OPGW order for Agra-Khumber project.
- OPGW tender pipeline of ₹1,000+ crores visible in the coming year.
- OFC business won ₹10 crore railway order, trial orders from data centers.
Themes from the call
New-age business ramp
OPGW and OFC businesses just launched; double-digit margins versus single-digit legacy steel wire; revenue contribution expected substantial from FY28.
Legacy steel wire stability
FY26 revenue ₹5,400 million (97% of total); utilization above 75%; value-added product mix targeted to rise from 20% to 30-35%.
Balance sheet strength
Net debt-free after December 2025 IPO; capex planned for FY27 but magnitude undisclosed; growth expected to accelerate beyond historical 25%.
Guidance watch
- Revenue growth acceleration beyond 25% post-IPO capital deployment.
- OPGW and OFC revenue to be 'substantial' by March 2028, but no phase targets.
- Capex increase in FY27, exact numbers not disclosed.
Risk flags
- Supply chain constraints on optic fiber preforms could limit OPGW production.
- Raw material inflation and rupee depreciation pressure legacy steel margins.
- New-age businesses have minimal revenue in FY26; ramp-up execution risk.
Key quotes
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"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 -
"OPGW and OFC margins are expected in double digits versus single-digit legacy steel wire EBITDA margins."
— Management, FY26 concall
The brief
Systematic Industries has a new story to tell. The legacy steel wire business — FY26 revenue ₹5,400 million, growing 24% — wants to share the stage with OPGW and OFC. This quarter brought the first milestone: a Power Grid EPC order for the Agra-Khumber OPGW transmission section. Management pointed to a ₹1,000+ crore tender pipeline in the coming year, a number large enough to change the company’s margin profile. The OFC business, meanwhile, secured a ₹10 crore railway order and trial runs with multiple data center companies, riding the data center boom.
None of this was visible a year ago. The December 2025 IPO made the net debt-free balance sheet possible. Management now talks of growth accelerating beyond the historical 25% CAGR. But specifics remain thin: capex guidance for FY27 is a ‘planned increase’ with no number; OPGW revenue is called ‘substantial’ by March 2028, not sooner. Legacy steel still supplies 97% of revenue, and its single-digit EBITDA margins cap the aggregate picture for now.
The supply chain carries risk — optic fiber preform constraints are real, and raw material inflation is squeezing steel wire pricing power. But Systematic’s integrated OPGW manufacturing (steel to cable under one roof) is a genuine differentiator versus Sterlite, Apar, and LS. The first Power Grid order is a validation, not yet a revenue stream.
What’s changed is the narrative. Systematic is no longer only a steel wire company. The next two quarters need to show orders converting to revenue.
Systematic's first OPGW order is a milestone, not a breakout. The pipeline is promising; execution is now the variable.