1. At a Glance
Dynamic Cables just dropped its Q1 FY26 results with a shocking 26% YoY revenue jump and PAT of ₹18.21 Cr. The company is now buzzing with an order book of ₹734 Cr, a fresh bonus issue (1:1), and a new plant planned for H2FY26. But is this wire hot, or just a live wire near a puddle?
2. Introduction with Hook
Imagine if your local kirana store suddenly decided to supply India’s Discoms, EPC contractors, and the Railways — and succeeded. That’s Dynamic Cables.
- Revenue CAGR (5Y): 19%
- PAT CAGR (3Y): 28%
From a modest power cable manufacturer to a ₹2,000 Cr market-cap dynamo, this Jaipur-based company is on a “voltage-high” growth trip.
3. Business Model (WTF Do They Even Do?)
Dynamic Cables manufactures the stuff that powers India’s progress — literally:
- LT, HT & EHV Cables
- Railway signalling & solar cables
- Power control, instrumentation, and flexible cables
- Supplies to Discoms, EPCs, Railways, industrial & export clients
“Basically, they make copper and aluminium noodles, wrap them up in plastic, and ship them to everyone from railways to renewable projects. And it works.”
4. Financials Overview
Here’s the Q1 FY26 spark:
| Metric | Q1 FY25 | Q1 FY26 | Change |
|---|---|---|---|
| Revenue | ₹209 Cr | ₹262 Cr | +25.5% |
| EBITDA (Est) | ₹22 Cr | ₹27 Cr | +22.7% |
| Net Profit | ₹12 Cr | ₹18.21 Cr | +56.9% |
| EBITDA Margin | ~10% | ~10% | Stable |
| EPS | ₹2.39 | ₹3.75 | +57% |
Comment:
Margins steady. Growth strong. Profit zooming. Wires aren’t the only thing conducting electricity here.
5. Valuation
CMP: ₹453 | P/E: ~33.8x | Book Value: ₹77.1
Method 1: P/E Valuation
- FY26E EPS: ₹15–₹16 (TTM ₹14.73)
- Target P/E: 28–35x
- Fair Value Range: ₹420 – ₹560
Method 2: EV/EBITDA
- FY26E EBITDA: ₹120 Cr
- EV/EBITDA Range: 10–12x
- Implied EV: ₹1,200 – ₹1,440 Cr
- Market Cap adj.: ₹1,800 – ₹2,100 Cr
- Fair Value per share: ₹400 – ₹470
Verdict: “At current levels, not dirt cheap but not nosebleed either. Just expensive enough to make you pause and pretend to ‘do more research.’”
6. What’s Cooking – News, Triggers, Drama
- Q1 FY26 Results: All green – revenue +26%, PAT +57%, EPS +57%
- Order Book: ₹734 Cr
- Bonus Issue: 1:1, because investors love free stuff
- New Plant Coming: H2FY26, capex-ready
- Conference Call: Held on July 23 to explain how cables became cool again
No frauds. No SEBI glare. No promoter resignation. This is India’s rarest microcap breed: boringly consistent.
7. Balance Sheet
| Metric | FY25 |
|---|---|
| Equity Capital | ₹24 Cr |
| Reserves | ₹350 Cr |
| Borrowings | ₹59 Cr |
| Total Liabilities | ₹589 Cr |
| Fixed Assets | ₹84 Cr |
| Cash & Equiv. | Minimal |
Commentary:
Debt reduced, reserves piling up, working capital stable. This balance sheet sleeps at night.
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Flow |
|---|---|---|---|---|
| FY25 | ₹56 Cr | ₹-76 Cr | ₹19 Cr | ₹-0.5 Cr |
| FY24 | ₹1 Cr | ₹-16 Cr | ₹15 Cr | ₹0 Cr |
| FY23 | ₹27 Cr | ₹-16 Cr | ₹-12 Cr | ₹0 Cr |
Insight:
Operating cash is now real. Investing cash goes into capacity. Financing? Conservative. Dynamic Cables isn’t cash-rich, but definitely not cash-starved.
9. Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROCE | 26% |
| ROE | 22% |
| P/E | 33.8x |
| PAT Margin | 7% |
| D/E | 0.17x |
Verdict:
ROE is high. Debt is low. Even the PAT margin is holding firm. This is “sustainable sexy.”
10. P&L Breakdown – Show Me the Money
| Year | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY23 | ₹669 Cr | ₹63 Cr | ₹31 Cr |
| FY24 | ₹768 Cr | ₹77 Cr | ₹38 Cr |
| FY25 | ₹1,025 Cr | ₹105 Cr | ₹65 Cr |
Commentary:
Revenues, profits, margins — all pointing north. Nothing flashy. Just the good old “make more, spend less” game.
11. Peer Comparison
| Company | Rev (TTM) | PAT (TTM) | P/E | ROCE |
|---|---|---|---|---|
| Polycab India | ₹23,616 Cr | ₹2,216 Cr | 46.8x | 29.7% |
| KEI Industries | ₹10,257 Cr | ₹742 Cr | 51.1x | 21.3% |
| R R Kabel | ₹7,618 Cr | ₹303 Cr | 54.6x | 19.7% |
| Finolex Cables | ₹5,319 Cr | ₹701 Cr | 20.1x | 17.6% |
| Dynamic Cables | ₹1,079 Cr | ₹71 Cr | 33.8x | 26.4% |
Punchline:
Smallest kid in the class, but punches way above its weight.
12. Miscellaneous – Shareholding, Promoters
| Category | Jul 2025 |
|---|---|
| Promoters | 68.18% |
| FIIs | 1.49% |
| DIIs | 1.64% |
| Public | 28.68% |
Note: Promoters trimmed 6% stake over 3 years, but still command >68%. FII + DII creeping up. Shareholder count growing. Interest is real.
13. EduInvesting Verdict™
Dynamic Cables is that rare midcap that quietly powers homes, factories, and investors’ returns. It doesn’t sell a vision of being the next Tesla. It sells wires. And business is shockingly good.
Verdict:
“A cable company with less noise, more volts. Might not dazzle at parties, but definitely pays the electricity bill.”
Metadata:
Written by EduInvesting Team | 23 July 2025
Tags: Dynamic Cables, Q1 FY26, Analysis, EduInvesting Premium, Power Sector, Capital Goods
