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Expanding growth momentum across segments

Wires & Cables (W&C) delivered a strong performance in Q2FY27, with revenue growing 47% YoY and domestic W&C revenue increasing 50% YoY, supported by healthy demand across government and private sectors, strong execution and favourable commodity-linked realizations. Volume growth remained in the mid-to-high single digits on a strong base, with wires outperforming cables and channel sales growing faster than institutional sales. exports grew 17% YoY despite geopolitical challenges. EBIT margin improved sequentially by ~90 bps to 14.2%, driven by operational efficiencies and a favourable product mix. Management remains confident of sustaining medium-to-long-term W&C EBIT margins within its guided range of 11- 13%. However EHV plant commissioning has been delayed from Dec’27 to FY28, pushing back the timeline for capacity ramp-up. The FMEG segment delivered strong performance, with revenue growing 124% YoY to INR9.9bn, driven by broad-based growth across categories, particularly solar products, which recorded multifold growth. EBIT margin reached 10.1%, supported by operating leverage, premiumisation and a favourable product mix. The NCLAT’s interim stay on the CIRP proceedings initiated over Asier Metals INR27.9mn claim provides near-term relief, with management confident of its legal position and expecting no material operational or financial.

Management remains optimistic about the medium-term demand outlook, supported by investments in T&D, renewables, manufacturing, railways, logistics, data centres, defense, EV charging infrastructure and a revival in private capex. We expect revenue/EBITDA/PAT CAGR of 24.3%/24.6%/24.6% over FY26-29E. We upward revise our FY28/FY29 earnings estimates by 2.9%/1.8%, factoring in stronger-than-expected domestic demand and a positive demand outlook. We assign a SOTP-based target price of INR11,083 (earlier INR10,786), based on 35x Sep’28E EPS, Maintain “BUY.

Q2FY27 financial performance: Sales grew 52.8% YoY to INR 98.9bn (PLe: INR 90.7bn). W&C business grew 47.4% YoY to INR 83bn. International business grew by 17.3% YoY. Gross margins contracted by 350bps YoY to 23.6% (PLe: 24.8%). EBITDA grew by 39.4% YoY to INR 14.2bn (PLe: INR 12.2bn). EBITDA margin contracted by 140bps YoY to 14.4% (PLe: 13.5%). PAT grew by 42.6% YoY to INR 9.8bn (PLe: INR 8.2bn). W&C EBIT grew by 38.5% YoY to INR 11.7bn and margins contracted by 90bps YoY to 14.2%. FMEG revenue grew by 123.8% YoY to INR 9.9bn and EBIT stood at INR 1bn and margins expanded by 960bps YoY to 10.1%. EPC revenues grew by 53.4% YoY to INR 6.1bn and EBIT declined by 39.2% YoY to INR 444mn and EBIT margin contracted by 1090bps YoY to 7.2%

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