Dynamic Cables Shares Down 18% Despite Reporting Strong Q4 Results: PAT Jumps 30%

Synopsis: Reporting audited standalone results for FY26, Dynamic Cables posted revenue growth of 16.8 percent to Rs. 1,198 crore alongside a 30.3 percent rise in PAT to Rs. 84.44 crore with the profit outpacing the top line primarily because working capital debt repayment drove finance costs down 25 percent year-on-year, releasing meaningful interest savings to the bottom line.

Shares of a Jaipur-based power cable manufacturer came into focus after its board approved audited financial results for the quarter and full year ended March 31, 2026, on May 12, 2026. The headline numbers reflect a company operating with more financial headroom than a year ago; lower borrowings, tighter receivables, and a capacity expansion now visibly underway.

With a market capitalization of Rs. 1,633.30 crore, the shares of Dynamic Cables Limited were trading at Rs. 337.5 per share, down 17.84 percent from its previous close of Rs.410.8. It is trading at a P/E of 23.75 apiece.

FY26 Financial Performance

Revenue from operations for FY26 stood at Rs. 1,197.82 crore, up 16.8 percent from Rs. 1,025.37 crore in FY25. PAT came in at Rs. 84.44 crore, up 30.3 percent from Rs. 64.82 crore. Adjusted EPS restated for the 1:1 bonus issue completed in July 2025 was Rs. 17.42 for FY26, against Rs. 13.65 for FY25.

The earnings growth running ahead of revenue is the more analytically interesting aspect of the results. Finance costs fell from Rs. 15.27 crore in FY25 to Rs. 11.48 crore in FY26, a 24.8 percent decline. The company had raised Rs. 96.59 crore via a preferential allotment in June 2024, and has since deployed Rs. 85.40 crore of that amount toward business objectives including working capital reduction.

Current borrowings at March 31, 2026 stood at Rs. 36.08 crore, down from Rs. 54.13 crore a year ago. The interest savings from this deleveraging flow directly into PAT, and partly explain why the profit growth rate is nearly double the revenue growth rate.

Material costs remain the largest expense at Rs. 997.73 crore (FY26), up from Rs. 826.67 crore in FY25, tracking the revenue ramp. Other expenses grew to Rs. 58.03 crore from Rs. 48.92 crore, largely in proportion. Employee costs rose to Rs. 46.17 crore from Rs. 38.34 crore, partly reflecting the December 2025 ESOP grant of 1,93,713 options at Rs. 324 per option.

Q4 FY26: Steady Quarter, Modest YoY

Q4 FY26 revenue came in at Rs. 355.46 crore, up 7.4 percent from Rs. 331.18 crore in Q4 FY25, a softer year-on-year rate than the full-year pace, partly because Q4 FY25 was itself a strong quarter. PAT for Q4 stood at Rs. 24.17 crore, up 2.6 percent from Rs. 23.56 crore. Sequentially, Q4 FY26 revenue improved from Q3 FY26’s Rs. 298.77 crore, and PAT was broadly comparable to Q3’s Rs. 22.42 crore.

Capex and Balance Sheet

The most forward-looking signal in the balance sheet is capital work-in-progress, which jumped from Rs. 0.05 crore in March 2025 to Rs. 32.55 crore in March 2026. Gross PPE also grew from Rs. 83.30 crore to Rs. 96.44 crore. Total capex outflow for FY26 was Rs. 57.41 crore, the largest single year of investment in the company’s visible history. The company operates three manufacturing plants in Jaipur and Reengus, and the CWIP suggests another facility or line expansion is underway.

Trade receivables rose from Rs. 236.75 crore to Rs. 287.88 crore in absolute terms, though debtor days improved from 106 to approximately 84 days on the back of higher revenue, an operational positive. Inventories grew from Rs. 149.64 crore to Rs. 172.79 crore, consistent with the revenue trajectory.

Total equity stood at Rs. 457.24 crore as of March 31, 2026, with other equity of Rs. 408.78 crore. ROCE stands at 26.4 percent among the higher return profiles in the mid-cap cable sector.

Business Overview

Dynamic Cables Limited, incorporated in 2007, manufactures LT, HT, EHVC, power control, instrumentation, flexible, solar and railway signalling cables. Listed on BSE (540795) and NSE (DYCL), the company supplies to government DISCOMs, private distribution companies, EPC contractors, and export clients from its Rajasthan manufacturing base.

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