1. At a Glance
Ladies and gentlemen, welcome to the electrifyinglynon-electricworld ofBirla Cable Ltd (BCL)— a ₹444 crore market cap member of the mighty M.P. Birla family that seems to have accidentally plugged itself into a low-voltage socket this quarter. The company, trading at ₹148 per share (down 31% YoY), flaunts astock P/E of 88.2x, anROE of just 1.98%, and anOPM that’s slipped to 4.1%, proving once again that not every wire in the cable universe conducts profits.
InQ2 FY26, sales stood at₹176 crore, down3.1% QoQ, whilePAT nosedived 65.5%to just₹0.69 crore— the corporate equivalent of sending a WhatsApp voice note when everyone expected a 4K video. With aROCE of 5.14%,debt of ₹112 crore, and adebt-to-equity ratio of 0.41, the company’s balance sheet looks balanced mainly because both sides are equally tired.
Still, the Birla Cable saga continues — with new capacity additions, European anti-dumping drama, and a proud Rewa-based plant that keeps spinning 36 lakh fibre kilometres per year like a marathoner running on electrolytes and optimism.
2. Introduction
Birla Cable’s story reads like a Bollywood remake of “Fibre Wars: The Return of Copper.” Born in 1992, this MP Birla Group company has grown from a simple cable maker to a multi-format manufacturer dealing in everything fromoptical fibre and structured LAN cablestotelecom accessories and copper wires.
But here’s the twist — even as the world binge-watches Netflix on fibre broadband, Birla Cable’s growth story seems to be buffering endlessly. Itssales growth over the past 3 years is just 7.3%, whileprofit growth has fallen by nearly 39%. Imagine trying to stream profits on a 1 Mbps connection.
To be fair, the company has made efforts — capital expenditures, new product lines, and a focus on exports (which make up 28% of revenue). Yet, despite these buzzwords, BCL’s profitability graph looks like a sagging ethernet cable.
Why? Because while optical fibre demand is booming globally, intense competition, pricing pressures, and geopolitical trade issues (like theEU’s 8.3% anti-dumping dutyslapped in June 2025) have left even seasoned players like BCL gasping for signal strength.
Still, Birla Cable soldiers on — expanding itsLAN Ethernet capacity by 10,000 boxes per month, acquiring1.5 MW of green energy capacity, and extending corporate guarantees to its larger cousinVindhya Telelinks Ltdworth ₹600 crore. Who needs thrillers when Indian corporate families write scripts like these?
3. Business Model – WTF Do They Even Do?
If you ever wondered who makes the invisible arteries that carry India’s digital blood (read: broadband data), Birla Cable is one of them — though currently more anervous capillary than a throbbing artery.
At its core, BCL makes and sells:
- Fibre Optic Cables– For telecom networks, broadband, and FTTX installations. Variants include Aerial, Underground Duct, Microduct, and Micromodule.
- Telecom Accessories– From Connectors and Pigtails to Joint Closures, basically everything your JioFiber technician can misplace.
- Structured Copper Cables– CAT 5E to CAT 7, ensuring old-school LAN networks don’t feel left out.
- Cable Accessories– Patch cords, keystones, patch panels — basically the LEGO set for telecom engineers.
Their plant atRewa (Madhya Pradesh)produces an impressive36 lakh fibre km annually, and they even have asubsidiary in Dubai (Birla Cable Infrasolutions DMCC)for international trading.
In short, they sell the cables, the accessories, and sometimes, the patience to handle telecom orders.
But let’s be honest — in an industry dominated bySterlite Technologies, Tejas Networks, and foreign behemoths, Birla Cable is like that dependable regional player who shows up on time but never tops the scoreboard.
4. Financials Overview
Quarterly Comparison (Standalone – ₹ in Crores)
| Metric | Sep 2025 (Q2 FY26) | Sep 2024 (YoY) | Jun 2025 (QoQ) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 176.07 | 181.72 | 176.44 | -3.1% | -0.2% |
| EBITDA | 7.20 | 9.36 | 7.82 | -23.1% | -7.9% |
| PAT | 0.69 | 2.00 | 1.34 | -65.5% | -48.5% |
| EPS (₹) | 0.23 | 0.67 | 0.45 | -65.5% | -48.9% |
Commentary:This quarter was less “Plugged In” and more “Power Cut.” Sales flatlined, operating margins crumbled to4.09%, and net profit practically ghosted. Even the accountants must have asked, “Sir, where’s the rest of the PAT?”
The annualized EPS from this quarter is a humble ₹0.92, giving us thatcomically inflated P/E of 160xif you ignore the trailing illusion. When your profit collapses but your P/E stays high, you don’t need a chart — you need counselling.
5. Valuation Discussion – Fair Value Range
Let’s break down this spaghetti of numbers:
- Current Price (CMP): ₹148
- EPS (TTM): ₹1.68 → P/E = 88.2x
- Industry P/E:~49.8x
(a) P/E Method:
If BCL were to trade at a more sensible 45–50x P/E (industry median), fair value ≈ ₹76–₹84 per share.
(b) EV/EBITDA Method:
- EV = ₹553 crore
- EBITDA (TTM) = ₹34 crore
- EV/EBITDA = 16x (already high).Fair EV multiple for this industry ~10–12x → Fair value range ≈ ₹110–₹130 per share.
(c) DCF (Approx.):
Assuming 8% revenue CAGR, 4% terminal growth, and 10% WACC → intrinsic range ₹95–₹115.
📉Fair Value Range: ₹90 – ₹120 per shareThis fair value range is for educational purposes only and is not investment advice.
6. What’s Cooking – News, Triggers, Drama
BCL’s recent headline acts could make a mini-series titled“The Cable Chronicles: From Anti-Dumping to Anti-Climax.”
- June 2025:The European Union slapped an8.3% anti-dumping dutyon Birla Cable’s optical fibre exports. Basically, “Thank you for your service, now pay extra.”
- September 2025:GST demand of ₹5.94 crore and penalty of equal amount —later quashed by the Commissioner (Appeals). The company’s finance team probably threw a small victory party with leftover LAN cables as streamers.
- March 2024:Board approved expansion of structured LAN Ethernet capacity by 10,000 boxes per month — because why not expand when margins are shrinking?
- November 2023:Acquired a stake inContinuum MP Windfarm Development Pvt Ltd, a power company, to source 1.5
