Jainik Power Cables Rallies 10% on Strategic Alliance with Tolaram Group’s Dufil Prima Foods

Synopsis:- Jainik Power Cables Limited has announced a strategic alliance with Dufil Prima Foods Limited, a member company of the Singapore-headquartered Tolaram Group, opening a potential procurement and distribution pathway spanning the group’s 75-plus country commercial network though no confirmed order values have been disclosed as yet.

A Sonipat-based manufacturer of aluminium conductors and power cables stepped into focus after announcing a strategic tie-up with a company from the Tolaram Group, a Singapore-headquartered multinational with over seven decades of operations across 20 countries. The NSE SME-listed company disclosed the development through a press release dated June 2026.

With a market capitalization of Rs. 215.57 crore, the shares of Jainik Power Cables Limited were trading at Rs. 150.25 per share, up 9.99 percent from its previous closing price of Rs. 136.60 apiece. It is trading at a P/E of 13.98.

Alliance Overview

The strategic alliance positions Jainik to access the Tolaram Group’s international procurement ecosystem across aluminium conductors, low-tension power cables, aerial bunched cables, and medium voltage cables up to 33 kV. The company has described the potential procurement requirements within the Tolaram network as roughly four to five times its current annual production capacity of Rs. 750 crore implying an addressable opportunity in the range of Rs. 3,000-3,750 crore. That figure, however, represents an indicative ceiling derived from the group’s scale rather than any committed order flow.

The press release is careful to deploy language such as “can be viewed as” and “potential procurement requirements,” signalling that the agreement grants market access rather than guaranteeing volumes.

The Counterparty: Dufil Prima Foods

Buried in the legal disclosure section of the press release is a detail that adds meaningful colour to the story: the alliance has been executed specifically with Dufil Prima Foods Limited, a Tolaram Group company. Dufil Prima Foods is best known as the manufacturer of the Indomie noodle brand across Nigeria and other African markets, where the Tolaram Group has been one of the most consequential foreign investors for decades.

The relevance for Jainik lies in Dufil’s manufacturing footprint; its factory expansions, supply chain infrastructure, and associated industrial construction in high-growth African and Asian markets would generate demand for power cables and conductors. Jainik’s cable and conductor portfolio would plug into Dufil’s procurement supply chain for utilities, plant setup, and energy connectivity rather than into a cable distribution business per se.

The Tolaram Group Context

The Tolaram Group is a genuinely substantial enterprise. Its origins in West African consumer goods have expanded across infrastructure, logistics, financial services, technology, and energy investments over seven decades. The group’s operational presence across 20 countries with commercial reach into 75-plus markets makes it one of the more active multinational platforms operating in emerging economies.

For a company of Jainik’s scale, association with this ecosystem does provide a meaningful point of entry into markets where Indian cable manufacturers have historically lacked direct relationships. The value of the alliance will ultimately depend on whether this access converts into structured, recurring procurement arrangements, and the timeline for that remains unspecified.

Jainik’s Manufacturing Platform

Jainik operates from an advanced manufacturing facility in Sonipat, Haryana, and currently claims an annual production capacity of approximately Rs. 750 crore worth of cables and conductors. This represents a significantly expanded footprint relative to its recent revenue history. The company’s FY25 revenue stood at Rs. 351 crore, up sharply from Rs. 67 crore in FY23 a 76 percent three-year sales CAGR driven largely by volume scale-up following its SME IPO.

Operating margins have improved from 2-3 percent in earlier years to 4-5 percent, consistent with the thin-margin nature of the aluminium conductor and low-voltage cable segments. The gap between declared capacity (Rs. 750 crore) and current revenue (Rs. 351 crore) suggests meaningful headroom to absorb incremental export orders without immediate capital expenditure, which is an operational advantage if the Tolaram relationship begins generating volume.

Financial Snapshot

Jainik’s financial trajectory has been steep off a small base. Net profit in FY25 was Rs. 9 crore against Rs. 5 crore in FY24, with a three-year profit CAGR of 387 percent. Return on equity stood at 57 percent in FY25, and ROCE at 40.2 percent both strong by sector standards for a company at this scale. Borrowings of Rs. 19 crore in FY25 are modest relative to total assets, and working capital discipline has improved, with debtor days falling from 94 in FY21 to 32 in FY25. TTM revenue stands at Rs. 375 crore with net profit of Rs. 11 crore. The half-year ended September 2025 showed sales of Rs. 185 crore and net profit of Rs. 6 crore, maintaining the growth trajectory. Promoter holding remains stable at 67.36 percent as of March 2026.

Business Overview

Incorporated in May 2011 and listed on the NSE SME Emerge platform, Jainik Power Cables Limited manufactures aluminium wire rods, ACSR conductors, LT power cables, aerial bunched cables, and medium voltage cables up to 33 kV from its Sonipat facility. The company serves utilities, EPC contractors, and industrial customers in the domestic market and is now pursuing a deliberate international expansion strategy. In H1 FY26 (September 2025), it reported revenue of Rs. 185 crore and a net profit of Rs. 6 crore.

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