Deep Dives/Cables & Wires/Prime Cable Industries Ltd

Deep Dive

₹235 Cr revenue, ₹217 Cr order book — riding India's power infra boom

Delhi-based cable maker grew revenue 4.4x in 4 years. Now building a ₹150 Cr medium voltage cable plant. Order book doubled in 6 months.

KnowYourSME Research

May 2026 · 8 min read

₹235 Cr

Revenue FY26

₹217 Cr

Order Book

10.7%

EBITDA Margin

66%

YoY Growth

1Executive Summary & Investment Thesis

Prime Cable Industries is a Delhi-based cables and wires manufacturer riding India's massive power distribution capex wave. Founded in 1997 by Purshotam Singla, the company manufactures control cables, power cables, ABC cables, housing wires, and instrumentation cables. Revenue scaled from ₹53.6 Cr (FY22) to ₹234.6 Cr (FY26) — 4.4x in 4 years. EBITDA margins improved from 3.8% to 10.7%. Order book doubled from ₹106 Cr to ₹217 Cr in 6 months. A ₹150 Cr MV cable plant at Ghiloth will take capacity from ₹350 Cr to ₹500 Cr by Q2 FY27. Post-IPO balance sheet transformed — equity ₹54 Cr, cash ₹40.8 Cr, positive OCF ₹12.7 Cr. Key risk: raw material costs are 84-90% of revenue with no hedging.

7/10

Infrastructure Capex Play — Strong Growth, Commodity Margin Risk

Well-positioned for India's power grid modernization. Excellent revenue trajectory, growing order book, and smart MV cable expansion. But commodity-heavy margin structure (84-90% COGS) and tender dependency create volatility risk. Suitable for investors bullish on India's power infra cycle.

Bull Case

+Revenue 4.4x in 4 years with FY27 target of doubling from FY25 base (₹280-300 Cr implied)
+Order book doubled to ₹217 Cr in 6 months — includes record ₹37.85 Cr single order. 4-6 month execution cycle
+MV cable plant expands capacity 43% to ₹500 Cr with higher-margin 11-33 KV products
+India's power distribution capex at all-time high — RDSS ₹3.03 lakh Cr. Every SEB upgrading networks
+Diversifying from 82% govt to 53.5% — adding private EPC and solar cables
+Post-IPO balance sheet: equity ₹54 Cr, cash ₹40.8 Cr, positive OCF ₹12.7 Cr

Bear Case

−Raw material 84-90% of revenue — copper/aluminium spikes can erase margins. No hedging
−Pre-IPO D/E was 3.78x — ₹150 Cr MV capex will re-lever significantly
−All facilities on lease — no owned property. Renewal risk and cost escalation
−Tender-dependent with 20% win rate — lumpy, no long-term contracts
−Geographic concentration in North India with nascent South presence
−Top 10 customers = 61% of revenue, largest at 13%

2Business & Management Architecture

The Journey

Prime Cable started as a cable trading firm in 1997 under Purshotam Singla in Delhi. Incorporated in 2008, it transitioned from trading to manufacturing with Unit-I at Narela, Delhi. The inflection came in January 2024 when Unit-II at Ghiloth, Rajasthan (67,178 sq ft — 18x larger) commenced production, tripling cable capacity. Revenue jumped from ₹82.5 Cr (FY24) to ₹141 Cr (FY25) to ₹234.6 Cr (FY26). The IPO on NSE Emerge raised ₹40.1 Cr, transforming the balance sheet. Now investing ₹150 Cr in a medium voltage cable facility — moving from LT cables (up to 3.3 KV) to MV (11-33 KV), where margins are better and competition is thinner. From a Delhi trading outfit to a multi-plant manufacturer with ₹217 Cr order book and ₹500 Cr capacity target — in under a decade of manufacturing.

Revenue Segments

~47%

Control Cables

Largest segment. EBITDA margin 12-13% — highest across products.

~27%

Power Cables

LT power cables up to 3.3 KV. Core product for SEB distribution networks.

~16%

Aerial Bunched Cables

Overhead power distribution. Lower margin at 9-10% EBITDA.

~10%

Housing Wires & Others

Consumer wires (Renufo brand) ~3.5%, instrumentation ~1.2%, solar cables (new), scrap.

Key Management

Purshotam Singla · Chairman & MD

Founder since 1997. Holds 51.70% pre-offer. Drives strategy and government relationships.

Naman Singla · Whole-Time Director

Son of CMD. 13.78%. Business development, tendering, client management. Primary concall spokesperson.

Nikunj Singla · Whole-Time Director

Son of CMD. 13.79%. Operations and manufacturing. Leads capacity expansion.

Naman Jain · CFO

Professional CFO. Finance, banking, and investor relations.

Promoter

68.23%

Public

18.67%

Institutional

13.10% (DII 10.18% + FII 2.92%)

Management flags: Singla family controls 68.23% and all executive positions. All premises leased from family. Modest ₹27 lakh/year director pay. Institutional holding 13.1% provides governance anchor. Professional CFO hired. Pre-IPO promoter holding was 93.53%.

3Industry & Market Dynamics

Industry Overview

India's wires and cables market ~₹95,000-100,000 Cr growing at 12-15% CAGR. RDSS allocates ₹3.03 lakh Cr for distribution upgrades. PM Surya Ghar, smart metering, and urban underground cabling drive demand. Fragmented market with Polycab, KEI at the top and hundreds of SME manufacturers.

Competitive Landscape

Competes with V-Marc India (similar scale, P/E 26.6x), Dynamic Cables (larger, P/E 50.6x), Ultracab. Large-caps Polycab, KEI, Havells at 50-100x scale. Prime differentiates on 15-state vendor approvals, product range, and MV cable entry. Commodity margins and tender pricing limit moat.

Peer Context

Listed peers: V-Marc India (similar scale, P/E 26.6x, RoNW 28.8%), Dynamic Cables (larger, P/E 50.6x), Ultracab (micro-cap). Large-caps Polycab, KEI, Havells at 50-100x scale. Prime Cable at an inflection — large enough for sizable SEB tenders, small enough to grow 50-70% annually. MV cable entry brings it closer to Dynamic Cables' product portfolio.

4IPO & Capital Structure

IPO Details

Issue Size

₹40.1 Cr (Fresh ₹35.1 Cr + OFS ₹5 Cr)

Price Band

SME IPO pricing

Platform

NSE Emerge (SME)

Listing Date

Listed on NSE Emerge (FY26)

Subscription

IPO oversubscribed

Objects of Issue

1.MV cable factory at Ghiloth — ₹14.45 Cr

2.Debt repayment — ₹4.48 Cr

3.Working capital — ₹7.89 Cr

4.General corporate purposes

Capital Structure

Pre-IPO: Equity ₹14.6 Cr, Debt ₹41 Cr, D/E 3.78x. Post-IPO: Equity ₹54 Cr, cash ₹40.8 Cr. MV capex of ₹150 Cr will require significant additional debt. Banking: Karur Vysya Bank, HDFC Bank.

IPO Promise Tracker

Has management delivered on IPO promises?

Not Started

Set up MV cable factory at Ghiloth

Land acquired, BIS upgraded to 33 KV. Q2 FY27 commissioning targeted.

Not Started

Repay existing debt ₹4.48 Cr

Part of IPO fund utilization.

Not Started

Working capital augmentation ₹7.89 Cr

Supporting ₹234.6 Cr revenue run-rate.

Not Started

Expand into MV cables

BIS for 11 KV obtained. First ₹8.3 Cr MV order won May 2026.

Not Started

Add solar cables

BIS certification for 1500V DC solar cables obtained.

Not Started

Expand vendor approvals beyond 15 states

Targeting remaining 12-13 states.

5Operational Performance & Growth

Operations & Capacity

Two manufacturing facilities: 1. Unit-I, Narela, Delhi (~3,767 sq ft, leased): 13,000 KMs capacity. Established unit. 2. Unit-II, Ghiloth, Rajasthan (~67,178 sq ft, leased): 21,000 KMs capacity. Commenced Jan 2024. NABL-certified testing lab. 18x larger than Delhi unit. Combined: 34,000+ KMs. Revenue capacity ₹350 Cr. Cable utilization ~55%, wire ~70%. New MV plant (Plot B-68, Ghiloth) — ₹150 Cr capex, 11-33 KV cables, Q2 FY27 commissioning. Will take capacity to ₹500 Cr. Bangalore warehouse for South India. ISO 45001/9001/14001 certified. Multiple BIS licenses.

Order Book & Pipeline

Strong momentum: ₹106 Cr (Oct 2025) → ₹130 Cr (Dec 2025) → ₹170 Cr (Mar 2026) → ₹217 Cr (Apr 2026). Doubled in 6 months. Largest single order: ₹37.85 Cr for HT/LT AB Cables from EPC contractor for SEB. Execution cycle: 4-6 months. Tender win rate: ~20% on ₹500-600 Cr pipeline. May 2026: ₹8.3 Cr 11 KV HT cable order — first MV order.

Key Milestones

1997

Purshotam Singla starts cable trading business in Delhi

2008

Prime Cable Industries incorporated

2024-01

Unit-II Ghiloth (67,178 sq ft) commences production — 3x capacity

2025-H1

IPO on NSE Emerge — raised ₹40.1 Cr. Balance sheet transformed

2025-11

H1 FY26 revenue ₹90.7 Cr (+62% YoY). Order book ₹106 Cr

2026-03

FY26 revenue ₹234.6 Cr (+66%). Solar cable BIS obtained

2026-04

Record ₹37.85 Cr order. Order book hits ₹217 Cr

2026-05

₹8.3 Cr 11 KV HT cable order — first MV cable order

Q2 FY27

MV cable plant commercial production. Capacity to ₹500 Cr

FY27

Target: double from FY25 base (₹280-300 Cr implied)

Management Commentary

“Our order book stands at INR 106 Cr... we expect to execute almost all of it within the year”

4-5 month execution cycle provides near-term revenue visibility.

H1 FY26 Concall, Nov 2025 — Naman Singla

“We are bidding on ₹500-600 Cr worth of tenders at any point with a 20% win rate”

Pipeline math: ₹100-120 Cr annual order wins from tenders alone.

H1 FY26 Concall, Nov 2025 — Naman Singla

“MV cable plant will be commissioned by Q2 FY27... 30-40% utilization by end of FY27”

₹150 Cr capex. 30-40% of ₹150 Cr additional capacity = ₹45-60 Cr incremental revenue.

H1 FY26 Concall, Nov 2025 — Nikunj Singla

“We have vendor approvals in 15 states and are working on the remaining 12-13”

State-level approvals take 6-12 months each — a real competitive barrier.

H1 FY26 Concall, Nov 2025 — Naman Singla

“Control cables give us 12-13% EBITDA, overall 10-12%, ABC at 9-10%”

Product mix toward control cables and MV cables will improve blended margins.

H1 FY26 Concall, Nov 2025 — Nikunj Singla

“Current plant can do ₹300-310 Cr at 80-85% utilization... we are at 55% today”

Significant headroom in existing capacity before MV plant comes online.

H1 FY26 Concall, Nov 2025 — Nikunj Singla

6Financial Health Deep-Dive

P&L Snapshot

Metric	FY22	FY23	FY24	FY25	FY26 (Prov.)
Revenue	₹53.6 Cr	₹73.6 Cr	₹82.5 Cr	₹141.0 Cr	₹234.6 Cr
EBITDA	₹2.0 Cr	₹2.9 Cr	₹5.1 Cr	₹14.6 Cr	~₹25 Cr
EBITDA Margin	3.8%	4.0%	6.2%	10.4%	~10.7%
PAT	₹0.48 Cr	₹0.12 Cr	₹1.79 Cr	₹7.4 Cr	~₹14 Cr
PAT Margin	0.9%	0.2%	2.2%	5.2%	~6.0%
EPS	₹0.35	₹0.09	₹1.30	₹5.35	~₹7.6
Order Book	—	—	—	—	₹217 Cr

Financial Commentary

Revenue 4.4x in 4 years, EBITDA margins from 3.8% to 10.7%. The margin expansion reflects scale benefits and product mix shift toward control cables. PAT went from near-zero to ₹7.4 Cr (FY25) with FY26 estimated at ₹12-14 Cr. Critical concern: COGS is 84-90% of revenue (copper, aluminium, PVC, XLPE). A 5% commodity spike on in-progress orders can erase EBITDA. No formal hedging. Post-IPO balance sheet is healthy: equity ₹54 Cr, cash ₹40.8 Cr, OCF positive at ₹12.7 Cr (H1 FY26).

💰

Cash Flow vs PAT

H1 FY26: OCF ₹12.7 Cr vs PAT ₹5.5 Cr — OCF exceeding PAT is a strong positive. FY25: OCF ₹3.4 Cr vs PAT ₹7.4 Cr — acceptable for growth phase. Investing CF (₹13.6 Cr) in H1 FY26 reflects MV plant capex. Cash generation is fundamentally healthy — a clear positive vs many SME peers with negative OCF.

⚠️

Balance Sheet Flags

POSITIVES: Post-IPO equity ₹54 Cr (3.7x jump), cash ₹40.8 Cr, positive OCF, RoNW 41.9%. CONCERNS: Pre-IPO D/E 3.78x, ₹150 Cr MV capex will re-lever, all facilities leased, trade receivables ₹41.2 Cr, bank guarantees ₹12 Cr, inventories ₹32 Cr (commodity risk).

Period-wise Analysis

FY22

₹53.6 Cr

Revenue

3.8%

EBITDA Margin

0.9%

PAT Margin

Early stage. Single unit at Narela. Thin margins on commodity conversion.

Key Developments

→Revenue ₹53.6 Cr from Narela unit

→PAT just ₹0.48 Cr — barely profitable

→D/E ratio 3.17x

FY23

₹73.6 Cr

Revenue

4.0%

EBITDA Margin

0.2%

PAT Margin

Revenue grew 37% but PAT crashed to ₹0.12 Cr. Material prices and finance costs ate margins.

Key Developments

→Revenue ₹73.6 Cr (+37% YoY)

→PAT collapsed to ₹0.12 Cr

→D/E worsened to 4.28x

FY24

₹82.5 Cr

Revenue

6.2%

EBITDA Margin

2.2%

PAT Margin

Ghiloth Unit-II commenced Jan 2024, tripling capacity. Margin recovery began.

Key Developments

→Unit-II Ghiloth commenced (Jan 2024)

→Cable capacity tripled to 24,000 KMs

→PAT recovered to ₹1.79 Cr

FY25Order Book: ~₹80-100 Cr

₹141.0 Cr

Revenue

10.4%

EBITDA Margin

5.2%

PAT Margin

Breakout year. Revenue +71%. EBITDA crossed 10%. PAT 4x jump. IPO filed.

Key Developments

→Revenue ₹141 Cr (+71% YoY)

→PAT ₹7.4 Cr — 4x increase

→IPO on NSE Emerge raised ₹40.1 Cr

→Vendor approvals in 15 states

H1 FY26Order Book: ₹106 Cr

₹90.7 Cr

Revenue

10.8%

EBITDA Margin

6.0%

PAT Margin

Strong +62% YoY. Margins improved. OCF ₹12.7 Cr. Govt share reduced to 53.5%.

Key Developments

→Revenue ₹90.7 Cr (+62% YoY)

→OCF ₹12.7 Cr — strong positive

→Balance sheet transformed post-IPO

Q3 FY26Order Book: ₹130 Cr

₹71.8 Cr

Revenue

~11%

EBITDA Margin

~6%

PAT Margin

Best quarter ever. +95% YoY. Annualized run-rate ~₹290 Cr.

Key Developments

→Revenue ₹71.8 Cr (+95% YoY) — record quarter

→Order book grew to ₹130 Cr

→MV plant construction progressing

Q4 FY26Order Book: ₹217 Cr

₹72.3 Cr

Revenue

~10.5%

EBITDA Margin

~6%

PAT Margin

Full FY26: ₹234.6 Cr (+66%). Record ₹37.85 Cr order. Order book doubled to ₹217 Cr.

Key Developments

→Q4 revenue ₹72.3 Cr (+66.5% YoY)

→FY26 full year ₹234.6 Cr (+66%)

→Record ₹37.85 Cr HT/LT AB Cable order

→Solar cable BIS certification obtained

→₹8.3 Cr 11 KV HT order (May 2026)

7Governance, Risks & Monitoring Checklist

Governance & Compliance

Singla family-run with 68.23% holding (down from 93.53% pre-IPO). Three family members in all executive roles. Modest ₹27 lakh/year director pay. All premises leased from promoter family. Reg 27 governance not yet applicable (SME exemption). Institutional 13.1% provides governance anchor. OFS of ₹5 Cr by CMD in IPO — partial exit but 68.23% retention shows commitment.

Key Risks

CriticalRaw material cost concentration (84-90%)

Copper/aluminium at 84-90% of revenue. No hedging. 5% commodity spike can wipe EBITDA on existing orders.

HighGovernment/tender revenue dependency

53.5% govt revenue. 20% tender win rate. No long-term contracts. Government payment cycles stretch 60-120 days.

HighMV plant execution and financing risk

₹150 Cr capex — largest ever. Only ₹14.45 Cr from IPO. Delay beyond Q2 FY27 impacts growth.

Medium-HighAll facilities on lease

No owned property. Renewal risk, cost escalation, cannot leverage as collateral.

MediumRe-leveraging from MV capex

Pre-IPO D/E was 3.78x. ₹150 Cr will add significant debt.

MediumCustomer concentration (top 10 = 61%)

Largest single customer 13%. Loss of major SEB approval would impact revenue.

MediumGeographic concentration

Manufacturing in Delhi/Rajasthan. Nascent South India presence via Bangalore warehouse.

Low-MediumContract labor dependency

Employee costs ₹1.7 Cr for 9M on ₹93 Cr revenue — heavy contract labor usage.

🚪

Exit Trigger

Exit if MV plant delays beyond FY27, if EBITDA margins fall below 8%, or if order book drops below ₹150 Cr

Quarterly Monitoring Checklist

Check these items every quarter to track this stock

MV cable plant commissioning by Q2 FY27

Order book sustaining above ₹200 Cr

EBITDA margins holding 10-12% through commodity cycles

Copper/aluminium price impact on quarterly margins

Government vs private revenue mix evolution

State vendor approvals expanding beyond 15

D/E ratio post MV capex

Trade receivable days — govt payment cycles

MV cable order wins (11-33 KV segment)

Solar cable revenue contribution

Capacity utilization trend toward 70-80%

Promoter shareholding stability

Sources

1. Draft Red Herring Prospectus (DRHP) — Prime Cable Industries Limited

2. Investor Presentation — H1 FY26 (November 2025)

3. Investor Presentation — 9M FY26 / March 2026 Meeting

4. H1 FY26 Post-Earnings Conference Call Transcript (November 5, 2025)

5. BSE Notification — Contract Award 11 KV HT Cable ₹8.3 Cr (May 9, 2026)

6. BSE Notification — Material Order ₹37.85 Cr HT/LT AB Cables (April 22, 2026)

7. BSE Notification — Q4 FY26 Business Update (April 24, 2026)

8. BSE Notification — Regulation 27 Corporate Governance Disclosure (April 21, 2026)

The Verdict

Well-positioned beneficiary of India's power infrastructure boom — 66% revenue growth, doubling order book, and smart MV cable expansion. But 84-90% raw material costs leave razor-thin margins and the tender-based model creates lumpiness.

Watch For

MV cable plant commissioning by Q2 FY27, order book sustaining above ₹200 Cr, EBITDA margins holding 10-12%, and state vendor approval expansion.

₹235 Cr revenue with ₹217 Cr order book and a ₹150 Cr MV plant coming online — India's next cables growth story or a commodity margin trap?

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Disclaimer: For educational purposes only. Not SEBI-registered. Author may hold positions in stocks discussed. Not a buy/sell/hold recommendation. Do your own due diligence.

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