Universal Cables Q1 FY27 Results (NSE: UNIVCABLES)
Signal: Margin expansion
The read
The operating inflection is positive: revenue reached 94505.94 lakh, +57.50% YoY, and EBITDA margin expanded to 10.01% from approximately 6%, supported by volume, mix, EHV and capacitor growth; however, gross margin compressed 4910bps as raw-material cost rose to 77.25% of revenue, while consolidated PAT growth of 108.77% was substantially amplified by 3894.11 lakh of associate/JV profit and a 270.40 lakh deferred-tax credit on standalone earnings.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹945.06 Cr | 57.50% | 12.47% |
| EBIT | ₹82.39 Cr | N/A | N/A |
| Net profit | ₹70.14 Cr | 108.77% | N/A |
| EPS | ₹20.22 | 108.88% | N/A |
| EBIT margin | 10.01% |
P&L walk
Revenue increased to 94505.94 lakh, +57.50% YoY and +12.47% QoQ, with EBITDA margin at 10.01%, but consolidated PAT growth to 7014.19 lakh, +108.77% YoY, was amplified by 3894.11 lakh of associate/JV profit.
Segments
The company reports one primary business segment, but consolidated PAT was lifted by 3894.11 lakh of associate/JV profit, including 3296.30 lakh from the associate and JV, making group earnings materially higher than standalone PAT of 3717.89 lakh.
Key positives
- Revenue was 94505.94 lakh, +57.50% YoY, with management attributing growth to higher volumes, improved product mix, EHV momentum and capacitor solutions.
- EBITDA margin expanded to 10.01% from approximately 6% YoY as EBITDA reached ₹94.57 crore, despite revenue growth of 57.50%.
- Exports rose 187% YoY to Rs 120.01 crore and represented 12.70% of revenue, indicating increasing international contribution.
- Pending order book was approximately Rs 2860 crore as of 1 July 2026, including approximately Rs. 485 crore of export orders, with approximately Rs. 390 crore of export orders in the pipeline.
- Employee plus other operating expenses rose 11.53% YoY versus revenue growth of 57.50%, a quantified fixed/semi-fixed cost benefit supporting margin expansion.
Key concerns
- Gross margin fell 4910bps YoY to 22.78% as raw-material cost increased to 77.25% of revenue from 72.75%; the filing does not disclose the cause or extent of pass-through.
- Finance costs rose 51.23% YoY to 3648.79 lakh, increasing the sensitivity of earnings to the capacity-investment funding mix.
- Consolidated PAT of 7014.19 lakh included 3894.11 lakh of associate/JV profit, so headline group earnings are materially more dependent on non-parent operating contributions than standalone PAT of 3717.89 lakh.
- The proposed optical-fibre JV expansion has an estimated outlay of approximately USD 500 Million, equivalent to approximately Rs.4800 crore, with funding planned through internal accrual, equity and debt.
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