VETO SWITCHGEARS & CABLES FY26: ₹387 Crore Of Revenue, A 9.4x Multiple, And A Factory Running At One-Fifth Of Itself

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1 — At a Glance

Veto Switchgears closed FY26 with consolidated revenue of ₹386.71 crore, up from ₹300.38 crore the year before — a top line that had sat almost perfectly still for two years (₹300.09 cr in FY24, ₹300.38 cr in FY25) and then jumped roughly 29% in a single year. Net profit rose to ₹25.13 crore from ₹22.13 crore. The March quarter did most of the lifting: ₹138.86 crore of sales, the largest quarter in the dataset by a wide margin.

Against that, the market pays 9.4x earnings — while the consumer-durables industry it files under carries a P/E of 41.3x. The company holds borrowings of ₹21.43 crore against a net worth of ₹289.69 crore, a debt-to-equity ratio of 0.07. ICRA reaffirmed its long-term rating at BBB+ (Stable) in December 2025.

The complication sits in the Insights data: electrical-accessories capacity utilisation is around 30% and wires-and-cables utilisation around 18%. A company can grow revenue 29% while most of its installed plant stays idle — when that happens, the growth is coming from somewhere other than the factory floor, and the press release’s expense lines hint at where.

A 9.4x multiple on a business growing its top line at 29% is the kind of number that usually comes with a footnote. What’s the footnote here?

2 — Introduction

Incorporated in 2007, Veto Switchgears & Cables manufactures wires and cables and electrical accessories, and trades LED lighting, CFL and fans under the Veto and Vimal Power brands. It is the flagship of the Gurnani Group and, per its own filings, the first company to produce ISI-mark electrical accessories in India.

The business is geographically lopsided. ICRA notes that Rajasthan accounts for over 60% of revenue, with a distribution network of around 4,000 dealers across roughly 20 states and 12 depots. There is a wholly owned subsidiary in Dubai, VETO Overseas Private F.Z.E., and the company is pushing into consumer durables — mixers, geysers, fans — under a new brand and subsidiary, a move ICRA explicitly flags as something it will keep watching for sales ramp-up.

FY26’s recent events are tidy and few. On 28 May 2026 the board approved the audited results, recommended a ₹1 dividend (10% of the ₹10 face value), and re-appointed its cost and internal auditors. On 3 June, promoter Kanishk Gurnani gifted 175,000 shares to Priyanka Gurnani. On 20 June, the company confirmed it is not classified as a Large Corporate. That is the news. No mega-order, no acquisition — a company doing the same thing, slightly bigger.

3 — Business Model: WTF Do They Even Do?

Three buckets. Wires and cables (standard, telephone, co-axial). Electrical accessories (switches, modular switches, extension cords, isolator boxes). And a trading arm that buys fans, CFLs and LED lights, slaps the Veto name on them, and sells them. FY23’s revenue breakup put Lighting & Fittings at ~42%, Wire & Cables at ~30% and Accessories at ~22% — meaning the single largest slice is products the company largely outsources rather than builds.

That matters when you look at the factory. Installed capacity for electrical accessories is ~600 lac pieces; FY24 production was ~118 lac pieces — utilisation around 20%. Wires and cables ran at roughly 18-27% across recent years. So Veto owns plant sized for a company three to five times its current manufacturing output, while leaning on a trading book for its biggest revenue line. The brand does the heavy lifting the machines aren’t.

The FY26 segment results sharpen this: of the consolidated operating result, the Lighting/Fittings and Accessories segments together out-earned the core Wire & Cables line. The company’s name says switchgears; its income statement increasingly says distributor of household electricals with a factory attached.

A manufacturer running its plant at one-fifth of capacity while growing revenue through traded goods isn’t broken — it’s just not really earning the word “manufacturer” for half of what it sells.

4 — Financials Overview

Figures are consolidated, in ₹ crore.

The March quarter’s revenue of ₹138.86 crore compares with ₹89.18 crore a year earlier and ₹94.22 crore in the prior quarter — by far the largest quarter on record. EPS shown is the full-year consolidated figure (₹13.15); at a March year-end the year is complete, so no