Dynamic Cables Limited (DYCL) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to Dynamic Cables Ltd. Q4FI26 earnings conference call hosted by Pellis Capital India Private Ltd. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Pranesh Shah from Philip Capital. Thank you and over to you, Mr. Shah.

Thank you, Nidab. Good afternoon, everyone. On behalf of Philip Capital, I welcome all of you to the fourth quarter and FY26 earnings conference call of Dynamic Cables Limited. From the management side, we have Mr. Ashish Mangal, Managing Director, Mr. Murarulal Podar, Chief Financial Officer, and Mr. Govind Sabo, IR Advisor. I request the team to give their opening remarks, post which we shall open the floor for Q&A. Thank you, and over to you, sir.

Good afternoon, everyone. I, Ashish Mangal, Managing Director of Dynamic Cables, extend a warm welcome to all of you, honeycomb. I am pleased to report a steady operational and financial performance for the quarter and the full financial year. Despite a volatile macroeconomic environment and continued uncertainty in the global markets, the company delivered a healthy performance during this year, reflecting disciplined execution, operational resilience, and prudent financial management. Also, there was a marked reduction in financial costs resulting from continued financial discipline and lower interest charges, driven by credit rating enhancement. During the financial year, We remain focused on our core value-added product. Our order book continues to witness healthy interaction during the quarter, supported by strong customer relationship and sustained demand across key power listed segments. This reinforces our confidence in the long-term opportunities emerging in the Indian power T&D ecosystem. During the year, company further strengthened its industry positioning to enhance product capabilities, new customer approvals, and continued focus on quality and execution standards. These efforts will enable us to participate in higher-value opportunities across key business segments. On the capacity expansion front, project implementation has picked up pace following the tip of key statutory approvals. While the project implementation witnessed delays due to approval-related timelines and disruption in imported machinery deliveries arising from the ongoing Iran war-related logistics situations, the new capacities will be available ahead of the seasonally stronger second half of FY27. We remain focused on discipline, execution, profitability, and prudent capital allocation. It's a healthy order book, stronger customer relationships, and a robust execution trailer. We are confident in our ability to capitalize on the long-term opportunities in the sector, sustain steady growth, and create long-term value for all stakeholders. With that, I now invite to the CFO, Mr. Podar, to share the financial highlights for the quarter.

Good afternoon to all. We are pleased to report a healthy financial performance achieving our highest revenue and profitability during FI26. Revenue grew by 17% while operating profit increased by 23% to repeat 130 crore, supported by improved operating leverage and a better product mix. Operating margin improved to 10.8%, reflecting enough operational efficiency. Profit after tax rose by 30% to 84%, driven by discipline, education, strong business momentum, and prudent financial management. Customer-wise contribution, NFI 26, was around. Government sales 13%, private sales 30%, exports 7%. Product-wise contribution FI26 was, HV cable 64%, LV cable 30%, conductor 6%. As of 30W mark 2026, our order book stands at high and a half 808 crore, providing stock revenue visibility. Thank you, and we are now open for questions.

Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask the question may press star and 1 on their touch-time telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the questions are assembled.

First question is from Randolph Piyush Selvadhasani from Sundara Maldraids.

Please go ahead.

Yes, hi, sir. Thank you for the opportunity. So, my first question is on the growth for fourth quarter, which looks on the software side. Can you help me understand how much has been the volume growth in this quarter and how much has been the realization growth?

Yes, yes, yes. So, yeah, so basically, just to give a context of growth which you were asking, So in Q4, our core product growth has been 20%, whereas the overall growth of 7% during the quarter, largely the difference between 7% and 20%. Basically, our low-value and low-voltage conductors and railway signaling cables, which we have discontinued this year. So, if we adjust these two items and our core products, which are our power cables, renewable cables, LVHV cables, and our niche conductors, which we manufacture, other niche products, so if you adjust that, it is around 20%. And with regard to the price growth, I mean, the composition of volume versus price increase, 8% growth is attributable to the material price inflation, and balance is basically volume growth. So this is what is the composition of our growth. And so, sorry, so 8% is for the full year. For quarter 4, it is 12%.

So, for the quarter, 12% is the realization growth and 8% volume growth.

Yes.

And you are saying that we have discontinued this conductor and railway cables

going forward? Railway cables we have discontinued for now because as we have been always... Discussing this over last three, four, five quarters, that railway signaling, we feel that competitive intensity is very high, and it is better to move on to our power cable products where demand scenario is much better and margin profile is much better. So it is better to kind of dedicate our operating facility and... The production capacity to higher margin products where profitability is high rather than the low value at the low profitable products, which are the low voltage conductors and railway signaling cables.

Sir, how much was contribution for this railway cables for layer F526, and like how do we plan to compensate for that going forward?

Yes, so F526, the railway signaling cable was zero.

Okay.

And in FY25, it was 4% contribution.

You guys taking this for fourth quarter, right? Fourth quarter, it was zero.

For full year. Full year, it was zero.

Okay. Sure. Actually, just on this KPEX, which has been delayed, so now we are expecting that to come in the second half. So how should we think about growth in FY27? Would it be largely flattest in first half and growth to resume in second half?

So, yes, so basically, first of all, let me give you, I mean, there has been a delay in the capex, so there is no two doubts about it. And the growth, it will, I mean, the new plant is going to start its production in September 27th. So, September 26th, I'm so sorry, September 26th, it will start the production. So, then... The heavy half, which is seasonally heavy half, is the second half. So, we will be having our capacity in the second half of the financial year, and I think H1 growth we will be managing from our existing facility. So, this is the growth outlook which we can give as of today.

But any guidance for FY27?

I mean, we have never been giving early guidances. We have always been giving a long-term guidance of 18% to 20% growth, which we have also delivered in the past, and we still believe that for a medium to long term, the company will deliver the same kind of growth in future also.

I'm asking because our order book also has only grown by 18%. And given the pricing increase, I'm assuming volume growth is not there. Anything else for PQS?

So, that's what, in FY25, our core product growth has been 25%, and If we adjust the 7-8% of inflation growth, we get around 17-18% of volume growth for core products.

No, I was asking about Audible. Audible also has grown only by 11%. So, that looks better or better.

So, basically, because of this price volatility, so typically in the industry, there is some deferment of order booking or kind of sales booking or order booking when there is such a sudden increase in our raw material prices. So we all know what has happened in the month of March. And so there has been a deferment of order booking in the month of March because of the sudden spike in... In the prices of aluminum and PVC, which are our key raw materials.

So, just last question. In this quarter, we have also seen gross margins going down. Any specific reason for that? It's 17.9.

So, gross margin, I mean, you have to look at operating profit is the right measure, actually, because gross profit, there are a lot of elements which come and go by, and it all depends on the product mix, customer mix. Which market we are selling to, so there is a lot of, there may be slight variation here and there in the gross profits, but at the operating profit level, I think we have been steady, and we have always guided an operating profit of anywhere between 10.5% to 11% all throughout the year, and that is what we have delivered also.

No, that's clear. That's it from my side. Thank you, sir, and all the best.

Yes, yes. Thank you, Gilles.

Thank you. Next question is from the line of Yash from Auriga Capital Advisors. Please go ahead.

Hi, thank you for taking my question. So, over the last four years, I can see the JPEX intensity has gone up. What you spent in three years, you spent in FI26. So, will this trajectory of higher keepers continue for FY27 and the medium term?

So, FY26, yes, as you know that we had initiated setting up of a greenfield plant. And whenever there is a greenfield plant which is being set up, the initial capex is always high. Brownfield expansions typically are kind of less heavy on the capex size. And that is what is the reason for increase in the capex in FY26. Going forward in FY27, or probably in the medium term, you can say, There would be capital expenditures each and every year because growth will demand capex. It may not be as intense as it was in FY26, but yes, relatively, probably because the base is also increasing. So, to keep up the growth numbers, we'll have to continue our capex.

Okay, so because if you see the players, every year they are reporting bigger and bigger KPEX, and even they are talking about bigger KPEX. So, I presume it should be the same case for you as well, because you are still at around 85-90% of utilization.

Yes, that's what I was saying, because at the industry level only, the base is increasing, and to keep up with the growth trajectory, we will have to maintain our KPEX program, or we have to continue with our KPEX program year on year.

Okay, and on the plan, sir, there's been significant delay. In Q4-FI25, you mentioned that you're on track to commission it in Q2-FI26, and you also mentioned that you can set up new capacities within 9 to 18 months, but here, there has been delay of around 15 months since what you targeted. So, can you speak more about it? Can you speak more about it, what the reasons for the delay has been? Right.

So, basically, there are three major reasons for the delay. One is that there were some government, basically, regulatory body approvals, which were delayed, and that basically delayed the, I mean, starting of the project implementation itself, and... Secondly, there were some import machineries which got delayed because of this freight-related issues of flight after this Iran war. And thirdly, there were some compliance requirements from the EERB board, which we need to kind of comply with. And so these are all reasons compounded for the delay of this plant. But I'm happy to report, I think, that the plant is now in the final implementation stages. And we have got most of the machines and civil work getting done. And probably in the next three, four months, we would be in a position to kind of start our trial production.

Okay, thank you. I'll get back in the queue.

Yes. Thank you. Next question is from the line of Netan Jain from Fair Value Equity Advisors. Please go ahead.

Yeah, thank you for the opportunity. My first question is around the revenue growth.

Nitin, sorry to interrupt you. Can you speak through the handset, please?

Hello, can you hear me now?

Yes, go ahead.

Yeah. So my first question is on the revenue growth. As you can see, it is like the slowest in many quarters. And as you have clarified, the railway tables have been discontinued for more than a year now. Besides, we had an order book, starting order book of around 790 crores at the beginning of Q4, so what exactly is the reason of this slow execution, sir?

Yeah, I didn't understand the question. So, you are saying that?

No, I'm saying that the revenue growth has been slowest in last many quarters. Right. And you pointed out that railway cables has been discontinued for a year now.

Right.

Yeah. So, what is the reason of the slow execution this quarter?

So, basically, there are two, three reasons, Nitin, I would like to just kind of highlight that, I mean, if you look at quarterly basis, it is really difficult to kind of do, because last quarter, we started this quarter with a very heavy base, with a very high base, so I think last year, Q4, our growth was around 38-39%, kind of. So, it was a very heavy base we started off with. Second reason was, as I told you, that there was a lot of disruptions and deferment of supplies due to immediate rise in raw material prices, and that is what led to deferment of sales and order booking, which I have already clarified in our earlier discussion also with the earlier participant. And if you adjust, and third impact was if you adjust the low-voltage conductors and railway signaling cables, our Q4 growth is 20%. So these are the kind of explanations for...

Right. So, just a follow-up on that, the volatility in the supplies that you mentioned, has it improved now or has it worsened? Because the situation is still the same, like what it was in February and March.

So, yes. So, basically, the prices have not come down, as we all know. Aluminium prices are elevated, PVC prices are elevated. But what happens is that acceptance of the market gradually starts kicking in. So that is what happens whenever there is such a disruption. Because that is kind of the reality which we have to face. So whenever there is a start of such disruption... At the start of the disruption, there is definitely a fear and scare or deferment, which leads to deferment of consumption. But gradually, the acceptance also starts kicking in. So these are the two factors which are being observed in the market at present.

My next question is on the net debt, as you have clarified in the press release, it has jumped up significantly quarter on quarter. So, what is the end? Why is it very, very, very difficult to- Hello?

Yeah. Hello? Nitin, can you please speak to the handset?

Yeah, just a minute.

Yes, yes, yes.

Hello? Yeah, yeah, it is much better. Yeah, can you hear me? Yeah, okay, okay. Yeah, that's clear, that's clear. Right. So, our capacity expansion has not gone live yet, but our net debt has increased significantly quarter on quarter. So, what is the reason for that? And as a result of this, should we see a jump in finance costs again going forward?

The entire borrowing, which you look at, is our working capital borrowings. So it all depends on the seasonality. March is a heavy quarter for all the cable manufacturers. And so there has been a slight increase of debt in our... And also, if you look at our on-books debt, it has kind of reduced from 66 crores to 40 crores. So, nothing to stand up. It's a very routine kind of thing which happens.

Right. But should we see a jump in finance costs now, going forward?

I don't think so, sir.

And, sir, management has, like, clarified in the past that you have 100% pass-through of costs as far as raw material costs are concerned, but still this quarter there is a significant margin drop at the gross margin level, so what would you ascertain this to?

Again, sir, I am again rediscussing this part that you have to look at the operating profit level because there are a lot of components. Goza at the gross level, so there can be 1% or 2% variation on a quarter-on-quarter basis. So that's not the right way to look at it because our revenue mix keeps on changing each quarter. So that is not the right parameter to look at. So there is freight and other components which kind of come and go based on the customer, based on the market, based on the product, and all the other things. So this is, I think, it. And with regard to pass-through, we still believe that we, I mean, we again restate our original... Thank you very much. We are having price variation crawls and it is a pass-through to our customers. which are at the firm price basis also, but those firm price basis, we kind of had that raw material at the time of order booking itself. So largely, the price volatility doesn't have much bearing in our business model. Our raw material price volatility does not have much bearing on our business model.

And my last question is on the capacity expansion, sir. So, we know that order booking and capacity expansion are interlinked. So, the fact that our capacity expansion is being postponed, is it one of the reasons why our order book growth has also slowed down quarter on quarter?

I don't think this is the right way to look at order booking. Order booking is largely, I mean, again, I have to repeat the same thing again and again. Since March month, per se, there was a large volatility in our materials, and therefore our pricing also increased, suddenly increased, and that is why a lot of our customers kind of... Take a step back and defer their purchases. It's a normal phenomenon, and that does happen whenever there is such kind of volatility in the market. We are into the B2B market, and where there is always an option with the customer to kind of time its purchases according to the scenario demand requirement.

Okay, just to follow up to that, sir, there is no definite date of go-line for the capacity expansion this time.

One second, one second.

There is no definitive date, but yes, we are kind of guiding that based on the developments at the site level, at the plant level, we should be able to go-line by September.

Right, but what you have ascribed, the reason for importing the machinery, the Iran war, the situation is still the same, sir, like in West Asia. So, why do you think we will be able to go live this time, like before the second half?

Because, I mean, that's what I was saying, that based on the site developments, the way the work is going on, the implementation is going on. This time we are guiding, or we believe that we should be able to go live by September.

Okay, thank you.

Next question is from the line of Nikhil Purohit from Freedent Aathak Management. Please go ahead.

Hi, am I audible?

Yeah, yeah, please.

Yeah, thanks for the opportunity. Sir, what was the volume growth separately in cables and conductors? Separately?

In cables and conductors? So, conductors, as I told you, that there was a degrowth, which we have discussed in the past also. On cable stand-alone basis, I think on a yearly basis, it was around 18%. And quarter four? Quarter four, it should be around high single digit kind of. In cables? In cables, yes.

Okay. And what percentage, you mentioned that low voltage conductors have been discontinued. Railways were already discontinued. So what percentage of sales is low voltage conductors in the total revenue? For the entire year at 526?

I think it is now sub 5% kind of.

5%?

Yeah, yeah, last year it was I think 8-9% which has now come down to sub 5%. So there was around 50-60%, 50% kind of volume, volume decrease in low cost conductors.

Okay, okay. And just understanding of the capacity utilization side, so we were at 75%, 75 to 80% in quarter three. We were quite comfortable with that position in March also. Now, of course, there have been order delays like you've mentioned earlier. But for H1, F527, do we see any? problems in terms of capacity because we're already at one of the peaks. I mean, how will we be able to get growth in H1, FI27?

Yeah, we have managed the seasonally, I mean, the high season Q4 and Q3 last year, and so I think we are quite confident to manage the Q1 and Q2 also. This is our order book. And I think when the peak season kind of kicks in, in Q3 and Q4, we would be ready with our new capacities as well. So, that is how we...

Exactly. So, H2 is okay because September 2026, the capacity ideally should come on. But for H1, then we are already at the peak.

So, what I am saying is that our current capacities are sufficient for kind of our H1 order book and H1... Okay, okay.

And this last question on the other expenses, how did we control these to such an extent, just 4.1% of sales? And also on the employee expenses, we had indicated that the last quarter generally has higher incentives, higher bonuses given out. But here also, there's a decline here on here. If you could explain these, how do we understand these going further?

Perfect, perfect. So, first I'll take the employee expenses. So, employee expenses, as I told you that, I mean, I have not told you, but I am telling you, that last year there were some one-time bonus and incentives which were declared in the month of March itself. So, that booking was there in the base, which was rationalized during this year, and it was kind of amortized during the year. So, that is why it's not a decline as such, it is just… We have a proper way of accounting the expenditure. So that is what has led to employee expenditure, optically which looks as a decline, but there is no decrease in our workforce as well as our employee salary or employee compensation assets. It is just that the accounting of... So if you look at the last year quarterly breakup of employee expenses, there was a sudden spot in Q4, which has now been normalized in the current year. So that is the reason for employee benefits. And other expenses, we have been discussing that there is always a trade-off between gross profit margin and other expenses based on the product mix, market mix, geography mix, and all those things, which kind of happening because there are a lot of direct expenses. Like freight and other components, which sometimes, in some business, contracts are born by us, and in some contracts, it's born by the customer. So, it keeps on varying on that part. So, it is better to look at our company's operating performance at an operating profit or EBITDA level rather than gross profit and other expense level.

Got it, sir. Okay. Thank you.

Thank you. Next question is from the line of Karanav Jain from Ageless Capital. Please go ahead.

Hi, sir. Thanks for the opportunity. I hope I'm audible. Sir, with respect to the TS Conductor Corp announcement that we put out, can you talk more about that? What will the commercials look like? What kind of incremental revenues can we possibly get from that? Approvals, how much time will they take for the HTLS virus? Just a little more on that. Yes, sir.

I mean, we have given quite a detailed press release on this TS conductors development with our company. So it is basically a stepping stone or basically a starting step to venture into this high-voltage conductor market for our company. Because the carbon core technology, which has recently got adopted by the utilities, and is now, we believe that... In the future, it can become quite relevant in the entire transmission ecosystem of our country, and to initiate our entry into this high-voltage conductor market, which, again, there are very few players who have such kind of tie-ups, core tie-ups, because the core technology is limited to few players only across the globe. So, there are very few manufacturers in India who have such kind of tie-up, and with this tie-up now in place, we can actually go to our customers, take our product approvals or take the approvals, do type testing of our products, and basically convert them into some orders and serious business sales revenue. So it is a starting step into that direction. There is no hard timeline that when this would materialize into revenue and sales. But yes, intent is very clear, and we believe that it is a... It is a very niche, I mean, a futuristic product, and it would be adopted by the utilities as a solution to this vertical expansion in the power infrastructure.

Just to understand, how did we end up, you know, getting this agreement, or getting into this agreement with DS Conductor Corp? Like, how did it come to be?

So it is, so we have been. In the search for such kind of tires, I mean, our team was in touch with these technology providers, and finally we got a breakthrough with TS conductors.

Initially, the agreement is for a year, so can we expect anything to happen within a year's time, or most of the...

I mean, it has a renewable clause, so that's not a very big challenge, because initially, it's just that whether the product, we are able to manufacture the product, we get a positive type test of the product which is manufactured, so all that process will take around a year's time.

Good. All right, so that's it from my end. Thank you.

Thank you. Next question is from the line of Anuj Hariya from Interglobe Services. Please go ahead.

Hi, my questions are continuing the previous participants' questions. For the TS Conductor Partnership, do we need to incur any additional CAPEX, let's say, once the products get approved six months or one year down the line? Do we need to incur any additional CAPEX to manufacture the products?

Not much, not much, because our existing facility can be used to much of the extent for the manufacturing of the actual conductors. If some slight technological advancement or updates, updations need to be done, it is not a very big, it will not be a very big capex incrementally.

Okay. And you mentioned before that we have approximately 17 to 20,000 square meters of land available. So could you just give a brief idea on the next capex that we plan to do? Will it be more than the 40 crores that we are incurring right now, or it will be on the same scale or lower scale?

So, we are now basically concentrating on completing our existing CAPEX because we are already delayed on that part. The next set of CAPEX is not crystallized yet, so it will not be, in all fairness, it's not right to kind of give any guidance. But yes, as I have guided to, or we have discussed with earlier participants also, that there would be... Incremental capex, which would be coming up to keep pace of our growth momentum. So, the intent is there. Directionally, there would be additional capex, but how much, when, where? These things currently are not decided, and I think it will be difficult for us to discuss.

Okay, just another, if you could just give me the breakup, basically in quarter four of FI26 and throughout the year of FI26, could you just give me the percentage of sales from solar cables?

I have a full year number as of now. Okay. Full year number is around 18%.

Okay, and what was it last year, if you could just tell me?

Last year, it was 105 crores. So, basically, in percentage terms, it was 10%.

Okay. Okay. And this year, based on the FI27 numbers, do you expect the share to increase or remain the same?

I think it should increase marginally. So, from 18%, it can go up to anywhere between 20% to 23% kind of. It should be the incremental share.

Got it. And my final question is around basically, as you mentioned that there was some deferment of order booking in the month of March, which is quite obvious. But let's say in the first 14 to 45 days of this financial in April and May, are you seeing a change in mindset of people where customers are going ahead with order booking or what's the trajectory you're seeing right now?

Yes, there is an acceptance, which we discussed with earlier participants also. There is an acceptance of the higher raw material prices, and I also feel that there is some, I mean, given the criticality of the power infrastructure, it cannot be deferred beyond a point. So, because the power consumption is increasing, particularly in the summer, where grid has become heavy, the distribution infrastructure is under stress. So, it cannot be deferred for a very long time. That is the sense which we have from the market.

Okay, okay. Thank you. That will be all from us.

Next follow-up question is from the line of Yash, from Oreza Capital Advisors. Please, go ahead.

Hi, thank you for taking my question again. I wanted to ask that when would this new capacity be ramped up at full utilization levels?

We would like to ramp up as early as possible. Again, it's very, very difficult to kind of give a very hard timeline because Presently, it has not come live, so to kind of envisage would not be, is very, very difficult. But yes, I think we would like to, once it is live, we would like to ramp it up as soon as possible. So the market opportunity, so opportunity wise, I don't think there is a problem, because The e-beam technology, which the new facility will have, and renewable cable or solar cables, which the market is huge, DC cables and all those things. So, basically, on all the sites, there is no dearth of opportunity, and we would like to ramp it up as soon as possible.

Okay, last one, I do see that you've got a corporate guarantee from Indocrates, and also in your PPT, you've mentioned that Mr. Mangal is solely focused on managing dynamic cables. So, just to confirm, Mr. Mangal is not looking after any other business, and dynamic cable is only a focus area?

Yes, so basically, Indocrates is just a property holding company. It does not have any operations as such, any business operations. That was already withdrawn. And also that guarantee is also now withdrawn. So basically, no letter, as a letter, it will be.

Okay, thank you.

Thank you. Next question is from the line of Koshal Shah from Nexus Equity. Please go ahead.

Hello. Yeah, thanks for the opportunity. So, sir, so I have questions on the switcher guidance. So, basically, we just mentioned that we should be able to commence the operation from new plant in the second half of this year. So, just to look at the numbers. So, in H1 of this FF27, so would we be able to see growth vis-à-vis comparing the same number to H1 of FF26? So, X1 F527 versus X1 F526, and then short-up session on the full-year guidance for F527.

Sir, we don't have a practice of giving any guidance, short-term guidances. In a medium to long term, we have been growing at 18 to 20% growth rate, which in the past also and which should continue in the future also. So, we don't have any practice of giving any short-term guidance.

Thank you, thank you. Thank you. Next follow-up question is from the line of Nikhil Purohan from Freed and Aslan Management. Please, go ahead.

Hi, am I on the call? Yeah, thanks for the opportunity again.

Not clear, not clear. Not clear. Sir, not clear.

Is it clear now?

Yeah, yeah, much better.

Yeah. So, sir, if just on the gross margin side, I am aware you said you look at the EBITDA, but if our core products have grown 20%, then gross margin should improve year on year, right? Considering these are higher margin products versus something like lower value conductors, which we have actually discontinued, even railway cables.

That's what I am saying, sir, again and again. You should not look at a quarter on quarter. It's very, very difficult to kind of provide any kind of explanation on a quarter on quarter basis. If you look at our yearly numbers, you will see the improvement at the gross profit level also, and a corresponding improvement at the operating profit level also, because, again, there is... I mean, it's very, very difficult to explain half a percent or one percent variation at the gross profit level and operating profit or the other expensive level because both are interchangeable. There are a lot of direct expenses which go into other expenses, and when we do our pricing or when we do our costing in that, some part of our direct expenses and our raw material expenses both are included.

Okay. Just last question. We will continue to expect 1.5 times industry growth in FY27?

Should be. We should be able to do it.

So our long-term 18 to 20% remains in debt?

Yes, sir. Yes, sir. Yes, sir. Yes. All right.

Thank you.

Thank you. Next question is from the line of Khadija Mantri from K3 Global. Please, go ahead.

Hello.

Yes, go ahead.

Sir, I just wanted to know that in FY26, did we have any substantial exports and going forward also, will we be focusing on exports or given that we have capacity constraint in the first half, we would ideally be focusing on domestic market only?

Yeah, export was, I mean, export was, there was a slight degrowth in FY26 exports as compared to FY25. Again, the reason was, in this March quarter, in the March month, the exports were typically zero, non-existent, and that was the reason why there was a degrowth in our export value as well. I focus on export. It's always there and will be there. We have always maintained that we intend to grow our share of export within our overall revenue contribution. However, because of, unfortunately, in FY26, earlier there was some tariff problem which kind of delayed our U.S. plans, U.S. entry plans, which we are now re-establishing. And that should give a critical boost to our export program. And also the domestic market scenario is very, very conducive as of now. So it's always, I mean, we want to catch the low-hanging fruits first rather than to go on the export front. So, yes, but we believe that our exports share on a long-term basis. Should hit 10% and should increase to 15% kind of level in the medium to long term. Okay, sir.

And also, this CAPEX of 40 crore, what is the peak revenue potential? It would be five times asset term, you can assume?

Yeah, I mean, we gradually, we typically do six to seven times our asset terms. So, yes, five times is a very reasonable assumption to...

Okay, and sir, also for this HDLS conductor, do we have capacity to cater to this segment in SI27, in case there is any opportunity?

The problem is not of capacity, Khadija Ji. It is more related to the type testing and approvals, which will have its own... Process time, which we will have to navigate as we go into, we step into FI 27.

Okay, so assuming that we get the product gets type-tested in FI 27, maybe in the first half, then we will be able to deliver it from our current capacity in the second half?

Yeah, yeah, yeah. So if, I mean, if approvals are there and if we are competitive in the bids,

So it's fungible, the capacity is fungible, that is what I've got to say.

Fungible is fungible, yes. The process is almost the same, the core changes, that's all. The core technology changes, yes.

Okay, sir, and this 18 to 20% growth that we are guiding, it's a value growth or it is largely in terms of volume growth?

I mean, we typically give a value growth guidance only, so that is what it is. And it's not a single-year guidance, so it is a multi-year guidance.

Okay, I understand. Thanks and all the best.

Yes, yes, yes.

Thank you. Next question is from the line of Nitin Jain from Fair Value Equity Advisory. Please go ahead.

Yes, thank you for the follow-up opportunity. On the solar cable, what kind of margins do we have there? Are they above company average or in line with the company average? How is this?

In line with the company average.

And regarding the PGCIL approval, how is it helping us increasing the addressable market? Will it help us to make bigger orders or how exactly is it beneficial to the company?

So, as I was telling you that these are all stepping stones or, I mean, starting steps for us to enter this high-voltage conductor market, whether it is the PGCL approval or whether you look at this technology core, technology tie-up. All these things are starting steps for us to explore this high-voltage conductor market because we believe that... In the future, it is going to be the vertical expansion of the power T&D is going to be a huge opportunity for product manufacturers like us, and if we are able to supply the right kind of product in the market at the right time, it would be value equity for us as a company. So this is, these are all, this is the idea and I would say the.

A TS conductor is not for US market.

It is more to do with the domestic market. U.S. market has to, we are reestablishing our links with the distributors because it is completely distributor-led market in the U.S., and because of this tariff-related disruption, there was a gap of around six to eight months in between where all the interest of the U.S. distributors to procure from India had dried up. So now when the tariffs have gone away and now there is some policy stability in the U.S. from the U.S. government, we are trying to reestablish our U.S. connects and with the distributors and trying to... Basically, we have to start afresh in terms of our go-to-market strategy. We have started afresh, I should say.

Okay, you have started afresh already.

Yes, yes, yes.

Should we see any contribution in FY27 from this, or too early to comment?

I mean, there should be some contribution. How much it would be, it's too early for us to comment on. Correct. Thank you and all the best.

Thank you. Next follow-up question is from Maureka Capital Advisors. Please, go ahead.

Hi, sir. You recently mentioned about getting into WIRE as well for B2B business one day. I understand that there are many players in WIRE business already. So, how will you be standing out?

Yes, so basically, again, there are two differences. In the wire business, there are two kinds of markets. One is the B2C distribution-led market, and one is the B2B market, which is a principal-to-principal market. Again, I would like to clarify that we do not wish to focus on the B2C distribution-led wire market. We will confine ourselves to the B2B wire market. And ladies are... Because in cables, we are already a B2B supplier, and would like to leverage those relationships, those markets, those institutional supply chains. So, it's just an additional add-on product, which we have produced in our bookie of cables.

Margins and ROC profile would be similar to what you are existing.

Too early. Too early, but yes, it should, I mean, given our intent to be financed, to maintain our discipline, it should remain clean.

Okay, that's all. Thank you.

Thank you. Next question is from the line of Jay Mehta from Alios Financial Service. Please go ahead. Thank you. Jay, can you hear us?

Yeah, I can hear you. Can you hear me?

Yes, yes, please.

Sir, I want to know what is the capacity utilisation right now?

So, we, I mean, capacity-wise, we have guided for the peak capacity utilisation to be around 135 crores a month. That is the turnover capacity which we have guided at our peak level. Optimally, being a cyclical business, and also a customized production product we are manufacturing, we should be able to optimally utilize around 85 to 90 percent of our capacities. This is the idea which I can give.

So, the 135 number which you gave, at that time, the commodity prices were, last year was like, what, 50% lower than current, right? So, the commodity prices have risen exponentially in the last 7-8 months. So, won't that number change?

Yeah, it should change. I mean, again, what I am trying to say is that, but... We can't reassess our capacities now and then. Largely, and it's very, very difficult to kind of predict the commodity prices. So, that number might have increased much. At the time of last assessment, which we did, it was 135 crores.

Okay, so for the green fill, I believe you did capex of roughly 40 odd crore, and for that you will guide in success turnover in last quarter, in last to last quarter maybe. Since then also the commodity prices are low, so by 50%, is it reasonable to assume that?

Again, sir, I have no prediction of the commodity price. It has increased by 50%, it can decrease by 50% by the year end. So I have no clue on the commodity price, what we do. But I was saying, the idea which I can give you is that amongst all the commodity cycles in last 10 years, We have been able to, our average asset term has been around six times. That is the guidance which I can give you for future also. Now, for some quarter, it can be higher for other quarter, there is no clue which anybody has on the commodity prices, or the movement of commodity prices.

And, sir, there was some R&D you mentioned about on the data central cables, you were in discussion with a few contractors and things like that. So, any? Update on that?

That is an ongoing process, and we discussed in the last call also that it is not a one-quarter or two-quarter phenomenon because data center has a lot of other things to, other parameters also. Yeah, it is a very, very starting phase of the industry, and there is a lot of evolutionary Thank you.

Ladies and gentlemen, we will take that as the last question. I now hand the conference over to the management for closing comments.

Thank you. Thank you, all the investors, and thank you for your faith and trust in us.

So, we look forward to hear from you soon, with all my assurances. Thank you.

Thank you very much. On behalf of Philips Capital India Private Limited, that concludes this conference. Thank you for joining us, and you may now disconnect.

Thank you.