Jigar Cables revenue drops 45% while profits stay flat
The nano-cap cable maker reported revenue of ₹56.66 crore for FY26 as it funnels ₹14.43 crore into new factory capacity.
— 1 earlier story on Jigar Cables Ltd. →What's new with Jigar Cables Ltd.
- Revenue fell to ₹56.66 cr from ₹103.15 cr in the prior year.
- Net profit held steady at ₹1.75 cr despite the top-line contraction.
- Capital work-in-progress reached ₹14.43 cr, signaling a major factory expansion.
Why this matters for Jigar Cables Ltd.
Jigar Cables maintained bottom-line stability despite a nearly halved top line, pointing to improved margins or aggressive cost cutting. The jump in capital work-in-progress to ₹14.43 crore is a large bet for a company with a market cap of ₹59 crore.
What we're watching
- The operational timeline for the new manufacturing capacity.
- Whether margins can sustain this level as revenue continues to shrink.
- Execution risk on a major capex project relative to the current equity base.
The full read
Jigar Cables faced a difficult **FY26**, with revenue tumbling **45%** to **₹56.66 crore** from **₹103.15 crore** a year earlier. Yet, the company avoided a profit collapse, keeping net earnings flat at **₹1.75 crore**. This divergence suggests the firm is either shedding low-margin volume or has tightened its belt significantly. Management is betting the future on capacity, parking **₹14.43 crore** into capital work-in-progress—a substantial sum for a business with a market capitalization of only **₹59 crore**. Funding this expansion, the company converted share warrants into **1.98 million** equity shares at **₹50.35** apiece, pulling in **₹7.48 crore**. With auditors signing off on an unmodified opinion, the accounting is clean. The challenge now is whether this **₹14.43 crore** factory build can arrest the revenue decline or if the company is simply building capacity for a market that is leaving it behind.
Questions answered
- How did the company maintain profitability amid a 45% revenue drop?
- Net profit remained nearly flat at ₹1.75 crore, suggesting effective cost control or a shift toward higher-margin products.
- Did the company raise any external capital during the year?
- Yes, Jigar Cables converted share warrants into equity at ₹50.35 per share, raising ₹7.48 crore.