At a Glance
Delton Cables delivered Q1 FY26 results that were part spark, part short circuit. Revenue rose 9% YoY to ₹156.3 crore, EBITDA surged 38% to ₹13.7 crore, but PAT dipped 46% QoQ to ₹3.1 crore, showing margins are still as fragile as a cheap USB cable. The company’s new Plant III started operations in June 2025, promising capacity boosts, but the stock—trading at ₹770 with a P/E of 47x—burned 5% today. Investors seem to be asking: are we paying premium pricing for standard wiring?
Introduction
When a company makes everything from railway signaling cables to solar wires, you expect some electrifying growth. Delton Cables, born in 1948, is one of those old-school players that has quietly wired India’s infrastructure but rarely gets the limelight.
The latest numbers show operational improvement but a valuation that’s hotter than a short-circuited transformer. With margins hovering around 8% and a lofty P/E, this stock is less of a power line and more of a high-voltage gamble.
Business Model (WTF Do They Even Do?)
Delton manufactures:
- Wires & Cables: From building wires to Cat 6 LAN cables, solar cables, telephone cables, and even thermocouple wires. Basically, if electricity or data needs to move, they have a wire for it.
- Switchgear: MCBS, RCCBs, MCCBs, and a full range of distribution boards.
Their customers? Infrastructure, power utilities, railways, telecom, renewable energy setups—you name it. The business is cyclical, tied to capex cycles, commodity (copper) prices, and government orders.
Financials Overview
For Q1 FY26:
- Revenue: ₹156.3 crore (+9% YoY)
- EBITDA: ₹13.3 crore (margin 8.5%)
- PAT: ₹3.08 crore (-46% QoQ, flat YoY)
- EPS: ₹3.56
Annual FY25:
- Revenue ₹709 crore (+77% YoY)
- PAT ₹21 crore (+40% YoY)
- EPS ₹23.8
- ROE 16.3%, ROCE 19.4%
💡 Commentary: Strong revenue momentum but profits still thin due to high interest and rising depreciation from the new plant.
Valuation
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