Paramount Communications pivots to domestic market after US tariffs bite
Annual profit dropped 30.5% to ₹60.2 crore as exports stalled, but a Q4 recovery and a new ₹300 crore plant signal a shift toward domestic power demand.
— 1 earlier story on Paramount Communications Ltd. →What's new
- FY26 revenue rose 22.8% to ₹1,912 crore, but net profit fell 30.5% to ₹60.2 crore.
- US Supreme Court ruling on IEEPA duties may restore export competitiveness.
- New ₹300 crore plant in Narmadapuram will target EHV cable production.
Why this matters
The company is betting on India's power transmission build-out to offset the volatility of its US export business. While the US tariff ruling provides a potential lifeline for exports, the new plant shows management is no longer willing to rely on international markets alone.
What we're watching
- Timeline for the Narmadapuram plant to reach full capacity.
- Margin trajectory as the company shifts focus toward domestic EHV cables.
- Impact of the IEEPA duty invalidation on export volumes in FY27.
The full read
Paramount Communications ended FY26 with a 22.8% revenue increase to ₹1,912 crore, yet net profit slumped 30.5% to ₹60.2 crore. The culprit was the US export market, where tariffs took a heavy toll. A late-year pivot to domestic markets helped, with Q4 revenue rising 13.5% to ₹573 crore and profit hitting ₹20.5 crore. The company is now doubling down on India’s power transmission network. It plans to sink ₹300 crore into a new greenfield plant in Narmadapuram to manufacture EHV cables, with partial production expected by Q1 FY28. While a US Supreme Court ruling on IEEPA duties offers a potential path to restore export margins, the capital allocation suggests management is prioritizing domestic stability over international uncertainty. The next test is whether the domestic order book can sustain the Q4 recovery pace.
Questions answered
- Why did annual profit decline despite strong revenue growth?
- Net profit fell 30.5% to ₹60.2 crore because US tariffs disrupted the company's export business. Revenue grew 22.8% to ₹1,912 crore during the same period.
- What is the status of the company's export business?
- Exports were hit by US tariffs, but the US Supreme Court recently invalidated IEEPA duties. This ruling could restore the company's export competitiveness.
- What are the details of the new capital expenditure plan?
- Paramount plans to spend ₹300 crore on a greenfield plant in Narmadapuram, Madhya Pradesh. The facility will focus on EHV cables, with partial production targeted for Q1 FY28.
- How did the company perform in the final quarter?
- Q4 FY26 revenue grew 13.5% year-on-year to ₹573 crore, with net profit reaching ₹20.5 crore. This sequential recovery was driven by a pivot to domestic markets.
Story so far
All notes on PARACABLES →- Today · 8:14 PM IST Paramount Communications pivots to domestic market after US tariffs bite
- 2d ago Paramount Communications' annual profit sinks 30% despite record revenues