1. At a Glance
Dynamic Cables (DYCL) just posted its best-ever Q1 with revenue up 26% YoY, PAT up a sizzling 57%, and an order book standing tall at ₹734 crores. The company is juiced up for growth with a new plant (₹35 crore capex) ready to light up H2 FY26.
2. Intro – Why This Matters
Imagine a factory where cables fly off machines faster than excuses in a government office. That’s DYCL this quarter: record revenue, swelling order book, and expansion plans that scream “don’t underestimate us.” With rural electrification, solar boom, and underground cabling tailwinds, DYCL is surfing the power infrastructure wave like a pro.
3. Management Mic Drop
Ashish Mangal (MD):
- “Highest Q1 revenue and profitability ever.”
- “Order book visibility is strong at ₹734 crores.”
- “Solar and HV cables are our growth drivers; expansion is on track.”
CFO Poddar:
- Operating margin stable at 10.3%.
- Order mix: 51% HV, 39% LV, 8% conductors, 10% solar cables.
- Working capital: 100 days, net debt ₹60 crores, funded internally.
Translation: We’ve got orders, we’ve got margins, and we’re not borrowing to party.
4. Business Model – WTF Do They Even Do?
Dynamic Cables doesn’t sell fancy wires to your electrician. They’re B2B, supplying HV and LV cables to EPC contractors, utilities, and giants like L&T, Adani, Tata Power. Unlike Polycab or KEI, they skip the retail drama and focus on bulk business with sticky relationships.
5. Financials Overview
- Revenue: ₹261 crores (up 26% YoY)
- EBITDA: ₹26.9 crores (margin 10.3%)
- PAT: ₹15 crores (up 57% YoY)
- Order Book: ₹734 crores (+57% YoY)
Margins are tighter than your Wi-Fi password, but they deliver consistently.
6. Valuation
Using a 10x FY26E earnings and EV/EBITDA ~7x, fair value pegs around ₹400–₹450 per share.
If you think paying more is justified, you probably also enjoy airport Maggi.
7. What’s Cooking – News, Triggers, Drama
- New Plant at Reengus (₹35 crore capex) to boost solar/HV cables with E-beam tech.
- UL approvals in pipeline to enter US market in FY27.
- Solar cable TAM: ₹6,000–7,000 crores and expanding.
- Exports: Currently 15% of order book (Asia, Africa); US entry could be a game-changer.
8. Balance Sheet
| Assets | ₹ Cr |
|---|---|
| Net Worth | 280 |
| Debt | 60 |
| Cash | 15 |
Debt: manageable and expected to decline. Liquidity: adequate for capex.
9. Cash Flow – Sab Number Game Hai
| ₹ Cr | FY24 | FY25 | Q1FY26 |
|---|---|---|---|
| CFO | 35 | 48 | 12 |
| CFI | -30 | -20 | -10 |
| CFF | -5 | -10 | -2 |
Cash flow looks like a disciplined student — boring but stable.
10. Ratios – Sexy or Stressy?
| Ratio | Q1FY26 | Comment |
|---|---|---|
| ROCE | 18% | Hot enough to trend on FinTwitter |
| ROE | 14% | Solid |
| D/E | 0.2x | Safe |
| PAT Margin | 5.7% | Meh, but improving |
11. P&L Breakdown – Show Me the Money
| ₹ Cr | FY24 | FY25 | Q1FY26 |
|---|---|---|---|
| Revenue | 900 | 1040 | 261 |
| EBITDA | 88 | 105 | 27 |
| PAT | 40 | 49 | 15 |
PAT up 57% YoY – a glow-up worthy of Insta reels.
12. Peer Comparison – Who’s the Least Drunk Guest?
| Company | Revenue (₹ Cr) | P/E | Margin |
|---|---|---|---|
| Dynamic | 1040 | 12x | 10% |
| KEI | 7000 | 25x | 12% |
| Polycab | 14000 | 28x | 11% |
| Apar | 15000 | 20x | 9% |
DYCL is the sober one at a wedding where everyone else is overpriced.
13. EduInvesting Verdict™
Dynamic Cables is quietly electrifying its growth story — record order book, expansion on track, solar cables buzzing. But it’s still a mid-cap in a capex-heavy sector; execution will decide if it’s a live wire or a blown fuse.
A steady performer with sparks of upside.
Written by EduInvesting Team | 27 July 2025
Tags: Dynamic Cables Ltd, Q1 FY26 Results, ₹734 Crore Orderbook, Solar Cable Expansion, Edu Style Article, SEBI Regulation 30, EduInvesting Premium
