Paramount Communications pivots to domestic market after US tariffs hit
Annual profit dropped 30.5% as export headwinds bit, but a shift toward domestic power transmission projects and a new ₹300 cr plant signal a recovery.
— 1 earlier story on Paramount Communications Ltd. →What's new
- Annual profit fell 30.5% to ₹60.2 cr due to US tariff disruptions.
- Q4 profit recovered to ₹20.5 cr as the company shifted focus to domestic demand.
- A new Narmadapuram plant will target the EHV cable market by Q1 FY28.
Why this matters
The US Supreme Court ruling on IEEPA duties offers a potential lifeline for the company's export business. However, the decision to commit ₹300 cr to a domestic greenfield plant shows management is no longer waiting for foreign markets to stabilize.
What we're watching
- Progress on the Narmadapuram plant construction timeline.
- Whether export margins recover following the IEEPA duty invalidation.
- Order book growth in the EHV cable segment.
The full read
Paramount Communications ended FY26 with a mixed scorecard. While annual revenue climbed 22.8% to ₹1,912 crore, net profit slumped 30.5% to ₹60.2 crore as US tariffs crippled export margins. The company responded by pivoting to domestic power transmission projects, a move that helped Q4 profit reach ₹20.5 crore on ₹573 crore of revenue. Management is now doubling down on this domestic shift with a ₹300 crore greenfield plant in Narmadapuram, Madhya Pradesh, targeting the EHV cable market. While a US Supreme Court ruling on IEEPA duties could eventually revive export competitiveness, the company is clearly betting its future on India's expanding power grid. The next test is whether the Narmadapuram facility hits its Q1 FY28 production target without cost overruns.
Questions answered
- Why did annual profit decline despite double-digit revenue growth?
- Annual revenue grew 22.8% to ₹1,912 crore, but net profit fell 30.5% to ₹60.2 crore. The drop was driven by US tariffs that disrupted the company's export business.
- What is the status of the company's export business?
- The US Supreme Court recently invalidated IEEPA duties, which may restore export competitiveness. The company is currently pivoting toward domestic markets to mitigate these risks.
- What are the details of the new capex plan?
- Paramount plans to invest ₹300 crore in a greenfield cable plant in Narmadapuram, Madhya Pradesh. The facility will focus on EHV cables, with partial production slated 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 supported by the shift toward domestic power transmission demand.
Story so far
All notes on PARACABLES →- Today · 8:14 PM IST Paramount Communications pivots to domestic market after US tariffs hit
- 2d ago Paramount Communications' annual profit sinks 30% despite record revenues