1. At a Glance
Welcome to the world of Paramount Communications Ltd (PCL) — the company that decided to plug India into the future one cable at a time while unplugging its own bank debt at last. As of Q2 FY26, Paramount clocked ₹428 crore in revenue (up 20.3% YoY), while PAT slipped 34.8% YoY to ₹13.2 crore. The market isn’t impressed (stock down 40% in one year), but the company’s accountants finally are — because it’s now officially net-debt-free after repaying its final ₹86 crore dues to Invent ARC.
With a market cap of ₹1,213 crore, ROCE of 16.3%, and ROE of 12.8%, Paramount stands somewhere between an underdog reborn and a phoenix that occasionally forgets to rise. The stock trades at ₹39.8, a far cry from its ₹90 highs — perhaps because retail investors got tangled in its wires while the promoters quietly kept the lights on at 49.1% holding.
The company has big dreams: an upcoming ₹400 crore fund raise, new Madhya Pradesh plant, and 33,000 MTPA capacity expansion. But here’s the spicy part — after surviving bankruptcy-level drama in 2016, Paramount just might be India’s next turnaround blockbuster in the cables universe, competing with industry beasts like Polycab, KEI, and RR Kabel.
So, let’s unravel the wires — literally and financially.
2. Introduction
If you’ve ever switched on a fan, charged your phone, or seen an electric pole, there’s a chance something from Paramount Communications is hiding in plain sight. But while its cables power everything from railways to telecom towers, its stock price often behaves like it’s got a loose connection.
Founded with the ambition to be the “cable king of India,” Paramount has spent decades battling industry volatility, Chinese imports, and, let’s be honest, its own financial mess. But as of FY25, the tables (and cables) are turning.
Between FY22 and FY24, revenue surged 84%, thanks to a booming domestic power cable segment (up 80%) and growing exports (now 29% of total sales). The company even picked up global clients across 25+ countries, and its client list now reads like a who’s who of Indian industry — NTPC, BHEL, Adani, L&T, Ultratech Cement, ABB, and more.
Yet, success came with its own shocks — falling operating margins, a drop in telecom cable sales, and a habit of not paying dividends despite repeated profits. But with the final debt repayment in H1 FY25 and fresh capacity expansion on the horizon, Paramount is slowly rewiring its balance sheet — and maybe, investor sentiment too.
Still, the real question: can a once-stressed company with a ₹39 stock price truly spark an electrifying rerating in a market dominated by multi-baggers like Polycab and KEI? Let’s find out.
3. Business Model – WTF Do They Even Do?
Paramount Communications Ltd makes one thing really well — things that carry electricity and data but not your emotions.
It manufactures a full suite of wires and cables: LT/HT power cables, railway signaling cables, telecom and optical fibre cables, instrumentation cables, fire survival cables, and even lead-free house wires
. Basically, if it transmits power or signals, Paramount probably sells it.
Their business model revolves around two main segments:
- Wires & Cables (98%) – The bread, butter, and high-voltage jam of the company. It caters to power utilities, infrastructure projects, railways, telecoms, and industrial customers.
- Pipes (2%) – Added in 2023 through acquisition of Valens Technologies Pvt Ltd (HDPE pipes). Then, in true Bollywood twist, Paramount sold the subsidiary in Nov 2025 — exit consideration ₹2.05 crore — making it the shortest corporate marriage since Elon Musk’s Twitter honeymoon.
Paramount serves 600+ institutional clients, backed by 198 distributors, 154 dealers, and over 7,000 electricians — all silently helping the company keep the country wired (while investors pray it stays grounded).
Exports? Oh, it’s going global — 25+ countries, six continents, and aspirations to make 40% of future revenue from exports.
In short, Paramount’s business model is simple: build cables, connect India, avoid short circuits (financially or literally), and try to look cooler than Polycab doing it.
4. Financials Overview
Let’s crunch Q2 FY26, where the numbers tell a story more gripping than a Netflix thriller.
| Metric (₹ Cr) | Latest Qtr (Q2 FY26) | Same Qtr Last Year (Q2 FY25) | Prev Qtr (Q1 FY26) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 428 | 356 | 451 | +20.3% | -5.1% |
| EBITDA | 6 | 31 | 15 | -80.6% | -60.0% |
| PAT | 13.2 | 20 | 18 | -34.8% | -26.7% |
| EPS (₹) | 0.43 | 0.67 | 0.61 | -35.8% | -29.5% |
Commentary:
The cables are conducting current, but the profits seem to be short-circuiting. Despite higher sales, margins fell off a cliff — EBITDA margin down from 9% to just 1%. Maybe copper prices spiked, or maybe the CFO just forgot to plug in the profit meter.
Still, annualised EPS = 0.43 × 4 = ₹1.72 → at CMP ₹39.8, P/E = 23.1x. The official screener P/E is 16.6x, suggesting that markets are either being too generous or too confused.
5. Valuation Discussion – Fair Value Range
Let’s attempt some valuation sanity amidst the chaos.
Method 1: P/E Approach
Industry average (Polycab, KEI, Finolex, RR Kabel) = ~32x.
Paramount current P/E = 16.6x.
Assuming normalized EPS of ₹2.4 (TTM):
- Lower Range (15x) = ₹36
- Upper Range (25x) = ₹60
Method 2: EV/EBITDA Approach
EV/EBITDA
