Dynamic Cables Q1 FY27 Earnings Call — Analysis (NSE: DYCL)
Dynamic Cables reports highest-ever Q1 revenue with 33% YoY growth and 41% EBITDA increase, while entering the US market and commissioning new capacity from September 2026.
The take
Q1FY27 Revenue ₹349 Cr ( +33% YoY ) . New guidance — FY27 solar cable revenue share around 20% . New story: Greenfield capacity expansion with E-beam techn… .
Results
Revenue ₹349 Cr +33% YoY; EBITDA ₹38 Cr +41% YoY; EBITDA margin 10.9%; PAT ₹25 Cr +37% YoY.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Revenue | ₹349 Cr | +33% | yoy · Q1FY27 |
| EBITDA | ₹38 Cr | +41% | yoy · Q1FY27 |
| EBITDA Margin | 10.9% | point_in_time · Q1FY27 · Q1FY27 | |
| Profit After Tax | ₹25 Cr | +37% | yoy · Q1FY27 |
| Order Book | ₹811 Cr | +10% | yoy · As of 30-Jun-2026 · compared to Q1FY26 |
| Volume Growth (Cables) | 5-6% | yoy · Q1FY27 |
Guidance
Management guided 18-20% long-term revenue growth, solar cables growth of 25-30% for 3-4 years, and new capacity commissioning from September 2026 with meaningful revenue from Q4FY27.
What management committed to
- Company is planning to commission the new greenfield capacity in September 2026. — Q2FY27
- Management targets new plant utilization of 80-85% by end of FY28. — 80%-85%, FY28
- Solar cable revenue share will remain around 20% in FY27, with notable increase only next year. — around 20%, FY27
- Solar cable business will grow at 25-30% CAGR for at least the next three to four years. — 25%-30%, FY30
- Company will sustain long-term revenue CAGR of 18-20% as achieved historically. — 18%-20%, long-term
- Company will not enter B2C distribution for building wires; will stick to B2B segment.
Key themes
Capacity expansion, US market entry, solar growth
How the narrative shifted
- Greenfield capacity expansion with E-beam technology: Management positions the greenfield expansion as critical to capture growing demand and expand product range (E-beam).
- US market entry to expand export TAM: US entry is a milestone; a distribution-led market with huge replacement demand, where even a small share can multi-fold the addressable market.
- Solar cable growth driven by renewable energy capex: Solar segment, now 20% of revenue, is a key growth area with secular demand from India’s renewable energy buildout.
- Raw material volatility dampening near-term order book: Management attributes weak order book growth to customer reluctance to lock in high aluminium prices, but insists revenue execution remains unaffected.
- Steady long-term growth narrative of 18-20%: Management repeatedly anchors expectations around their historical long-term growth rate, downplaying quarterly volatility.
- Shift towards high-voltage and specialty cables (HTLS, data center): Company is building capabilities in HTLS, data center power cables while highlighting that most capex is fungible.
- Approval barriers as competitive moat: Management reassures that lengthy approval processes shield incumbent players from new entrants like Adani/Birla.
Operational commentary
- Entered US market with first shipments dispatched; US exports contributed ~15% of total exports in Q1FY27.
- Greenfield capacity expansion on track, commissioning from September 2026; first E-beam facility; expects meaningful revenue contribution from Q4FY27.
- Solar cables now ~20% of revenue; guided 25-30% CAGR for next 3-4 years.
- Product development and approval process underway for HTLS conductors and data center power cables; most capex fungible with existing machinery.
- Order book at ₹811 Cr; order cycle shortened as customers avoid long-term fixed-price orders amid high raw material prices, but revenue booking not materially impacted.
- Temporarily held back railway signalling cables due to low margins, awaiting market improvement.
- Building wire entry will be limited to B2B, not B2C distribution.
- Existing capacity utilization ~85%.
Analyst Q&A
Q. How does the company protect profits if commodity costs remain high?
We have two kinds of contracts – fixed price where we hedge raw material immediately, and variable price with price variation clauses passed to customers. This is how the industry functions and we’ve done this for years.
Q. What is the volume growth breakup and why was growth weaker in Q1?
5-6% volume growth, rest from aluminium price rise. Last Q1 had 25-26% volume growth (high base), and sudden input cost spikes caused some order postponement.
Q. Why is order book growth weak despite high aluminium prices?
April-May saw very weak order booking industry-wide because customers are reluctant to lock orders at elevated prices; they only place near-term orders for immediate execution.
Q. What is the outlook for US sales and margins?
It’s a journey just started; long-term it’s a huge opportunity. Margins initially similar to domestic, may improve as foothold established, but difficult to give a one-year target.
Q. Can we expect similar growth numbers in upcoming quarters if raw material prices remain at current levels?
It’s a very hypothetical question. We wish to maintain our long-term growth strategy of 20% plus; there may be some high growth quarters and some moderate ones, but overall we’ll stay on that trajectory.
Research and educational content only. Not investment advice.