Cable Stock in Which Management Is Targeting 50% Revenue Growth to Keep on Your Radar
This Cable Stock, engaged in the manufacturing and supply of electrical wires and cables, including power cables, control cables, building wires, conductors, and other products for industrial, commercial, and infrastructure applications, is in focus after targeting 40-50 percent revenue growth in FY28.
The company plans to expand manufacturing capacity to Rs. 600-620 crore by Q1 FY28, while increasing its focus on medium-voltage cables and renewable energy opportunities. Investors are watching whether capacity expansion, a strong order pipeline, and an improved product mix can drive sustainable growth and enhance profit margins.
With a market capitalization of Rs. 383.89 crore, the shares of Prime Cable Industries Limited were currently trading at Rs. 209.50 per equity share, down nearly 2.10 percent from its previous day’s closing price of Rs. 214 per equity share.
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Management Targets 40-45 percent Growth in FY27
Prime Cable Industries Limited has reported strong revenue growth and expects this positive trend to continue over the next few years. For FY27, the company’s management has guided for revenue growth of 40-45 percent year-on-year.
For FY28, it expects growth of 40-50 percent, while maintaining a cautious approach to its guidance. The company aims to achieve around 45 percent revenue growth over the next two years, supported by capacity expansion and better utilisation of its manufacturing facilities.
In FY26, Prime Cable Industries recorded revenue of Rs. 234.9 crore, compared with Rs. 141 crore in FY25, representing strong year-on-year growth of 67 percent. The company expects its expansion plans and improving production efficiency to support future revenue growth. Overall, its growth outlook remains positive, supported by rising capacity and business opportunities in the power cable industry.
Capacity Expansion Plans:
Prime Cable Industries Limited is expanding its manufacturing capacity to support future revenue growth and meet rising demand for power cables. The company’s two existing manufacturing facilities have the potential to generate approximately Rs. 360 crore in annual revenue at 85 percent utilisation, based on current raw material prices.
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The company’s third manufacturing facility at Ghiloth, Rajasthan, is expected to become operational by the end of Q2 FY27. This facility will mainly manufacture medium-voltage (MV) cables and is expected to add around Rs. 150 crore in annual revenue capacity at 85 percent utilisation.
Additionally, the company plans to invest in more plant and machinery, adding another Rs. 100 crore in annual revenue capacity by Q1 FY28. With these expansion plans, management expects total installed revenue capacity to reach approximately Rs. 600-620 crore by Q1 FY28.
However, the new facility is expected to ramp up gradually, with around 28 percent utilisation during FY27 as operations stabilise and production increases. Overall, these investments are expected to strengthen the company’s manufacturing capabilities and support its long-term growth.
Can the Capex Plan Expand Manufacturing Capacity?
Prime Cable Industries Limited has planned a total capital expenditure (capex) of approximately Rs. 40 crore to expand its manufacturing capacity. Around Rs. 25 crore is expected to be invested during the first half of FY27, mainly towards developing the Ghiloth facility in Rajasthan. The company plans to invest the remaining Rs. 15 crore by Q1 FY28 for additional plant and machinery at the same facility.
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The company expects to fund this expansion through internal accruals, cash generation, and debt, while aiming to minimise equity dilution. The investment will mainly support medium-voltage (MV) cable production and improve manufacturing capabilities. Once the expansion is completed, the company expects its total annual revenue capacity to reach approximately Rs. 620 crore at 85 percent utilisation, supporting its future growth plans and increasing production capacity.
Can Capacity Expansion Improve Profitability?
Prime Cable Industries Limited is increasing its focus on medium-voltage (MV) cables to improve profitability and meet rising demand from power infrastructure and renewable energy projects. The company plans to operationalise its new manufacturing facility at Ghiloth, Rajasthan, by the end of Q2 FY27, adding around Rs. 150 crore in annual revenue capacity. It has also secured approvals for solar cables and power cables up to 33 kV, creating opportunities in renewable energy, power distribution, and infrastructure development.
The shift towards MV cables could help improve margins, as management expects these products to generate EBITDA margins of around 12.5-13 percent, compared with the company’s overall margin of approximately 10 percent in FY26. With planned capacity expansion, better utilisation of manufacturing facilities, and a stronger product mix, the company aims to achieve an overall EBITDA margin of around 12 percent over time. However, actual improvement will depend on demand, production ramp-up, and the company’s ability to execute its expansion plans efficiently.
EBITDA Guidance and Margin Outlook:
Prime Cable Industries Limited reported an EBITDA margin of approximately 10 percent in FY26. For FY27, management expects margins to remain in the range of 10-11 percent, with a full-year target of around 11 percent. The company expects gradual improvement as medium-voltage (MV) cable production increases and the new manufacturing facility becomes operational.
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Medium-voltage cables are expected to generate higher EBITDA margins of approximately 12.5-13 percent, compared with the company’s current overall margin. Management believes that a balanced revenue contribution from low-voltage (LV) and medium-voltage cables could help the company achieve a blended EBITDA margin of around 12 percent.
Looking ahead, higher MV cable sales, better capacity utilisation, improved operational efficiency, and a stronger product mix are expected to support margin expansion from FY27 to FY28 onwards. These improvements could strengthen the company’s profitability as its manufacturing capacity expands and production gradually increases.
Order Book Details:
Prime Cable Industries Limited had an order book of approximately Rs. 191 crore at the end of May 2026, providing visibility into future revenue. This included a new Rs. 32 crore order from a private EPC contractor. The company expects demand from power distribution, renewable energy, rural electrification, infrastructure development, and data centres to create further business opportunities. A strong order pipeline could support revenue growth and improve capacity utilisation in the coming years.
Key Developments and Future Outlook:
Prime Cable Industries Limited is expanding its focus from low-voltage (LV) cables to medium-voltage (MV) cables to improve product value and profit margins. The company has strengthened its product portfolio with BIS approvals for solar cables and aluminium conductors, along with power cable approvals ranging from 3.3 kV to 33 kV. These developments are expected to create new business opportunities.
The company expects demand from power transmission and distribution, renewable energy, rural electrification, infrastructure projects, and data centres to support future growth. It has approvals across more than 18 states and plans to expand its reach among utilities, public sector undertakings (PSUs), and private EPC customers. Management also aims to increase the EPC contribution to its order book by around five percentage points, improving collections and reducing working capital requirements.
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Looking ahead, better plant utilisation and the gradual ramp-up of the new facility are expected to improve efficiency and profitability. The company also plans geographic expansion and product diversification, while considering higher-voltage cable opportunities beyond 33 kV over the longer term.
Company Overview:
Prime Cable Industries Limited is an Indian cable manufacturing company with operations dating back to 1997. Headquartered in Delhi, the company manufactures and supplies electrical wires and cables under the brands PRIMECAB and RENUFO.
Prime Cable Industries Limited's product portfolio includes low-voltage power cables, control cables, aerial bunch cables, instrumentation cables, building wires, conductors, and high-voltage cables up to 33 kV. The company serves diverse sectors, including power generation, transmission and distribution, oil and gas, mining, steel, real estate, and electrical infrastructure.
Recent Quarter Results:
Looking at the company's financial highlights, Prime Cable Industries Limited's revenue has increased from Rs. 85 crore in H2 FY26 to Rs. 144 crore in H2 FY27, which has grown by 69.41 percent. The net profit has also grown by 40 percent from Rs. 5 crore in H2 FY26 to Rs. 7 crore in H2 FY27.
Prime Cable Industries Limited’s revenue and net profit have grown at a CAGR of 57 percent and 121 percent, respectively, over the last five years. In terms of return ratios, the company's ROCE and ROE stand at 28.0 percent and 37.8 percent, respectively. Prime Cable Industries Limited has an earnings per share (EPS) of Rs. 6.68, and its debt-to-equity ratio is 0.85x.