Synopsis: Cable stock is strengthening its long-term growth outlook through capacity expansion, entry into the US market, and the launch of e-beam technology, while increasing its focus on solar cables, data centre infrastructure, and HTLS conductors to drive future revenue growth.
The shares of this are one of India’s leading manufacturers of power infrastructure products, engaged in the production of power cables, conductors, and transmission solutions are in the spotlight after it rose by 5 per cent in today’s session following expecting solar cable revenue to contribute around 20% of total revenue in H1 FY27, with the share likely to increase in H2 following the commissioning of its new plant.
With a market capitalisation of Rs. 2,178 cr, the shares of Dynamic Cables Ltd were trading at Rs. 449.65 per share, increasing 5% in today’s market session, making a high of Rs. 468.90, up from its previous close of Rs. 445.20 per share.
Capacity Expansion to Drive Future Growth
The company’s expansion project is back on track after regulatory and implementation delays were resolved. Management expects the new manufacturing facility to be commissioned in September, with meaningful revenue contribution beginning from Q4 FY27.
The project involves a capital expenditure of around Rs. 45 crore, and management indicated an asset turnover ratio of 6–7 times, highlighting strong long-term revenue potential. Capacity utilisation at the new plant is expected to reach 80–85 percent within about 18 months of commencement, with a broader target of achieving similar utilisation levels by the end of FY28, subject to market demand.
The expansion also marks the company’s entry into electron beam (e-beam) technology, which management described as a first for the business. Existing facilities are already operating at nearly 85 percent utilisation, indicating capacity constraints and reinforcing the need for additional manufacturing capability. The new technology is expected to enhance the company’s product offerings and support future growth.
US Market Entry Strengthens Export Growth
The company achieved a significant milestone by entering the US market during Q1 FY27 after nearly 15–18 months of preparation. The launch had been delayed due to tariff-related policy uncertainties and the extensive approval process required in the US, particularly for high-, medium-, and low-voltage power cables.
During the quarter, the US accounted for around 15 percent of total exports, while traditional export markets continued to include Asia, Southeast Asia, and Africa. Sales in the US are entirely distribution-led through local distributors supplying utilities and EPC contractors. Management expects margins to initially remain comparable with domestic operations, with the potential for gradual improvement as its market presence expands.
Solar Cables Continue to be a Key Growth Driver
Solar cables currently contribute approximately 20 percent of the company’s revenue, and management expects this share to remain broadly stable through the current financial year.
The company remains highly optimistic about the segment, projecting growth of 25–70 percent annually over the next three to four years. While the new facility could support higher solar cable production during the second half of the year, management expects any meaningful increase in revenue contribution to become more visible from the next financial year.
Positioning for Data Centre Opportunities
The company is actively pursuing opportunities in the rapidly growing data centre sector but clarified that its focus will remain exclusively on power cables, rather than optical fibre or communication cables.
Management noted that the opportunity is still at a beginning stage and depends on broader industry developments. The company is currently engaging with customers involved in upcoming data centre projects but has refrained from providing any revenue guidance due to uncertainty around project timelines.
Long-Term Opportunity in HTLS Conductors
Management identified High-Temperature Low-Sag (HTLS) conductors as a long-term growth opportunity over the next three to five years. The business does not require significant additional capital expenditure, as existing manufacturing infrastructure can largely be utilised.
Instead, the focus will be on product development, technology partnerships, and obtaining regulatory approvals. HTLS conductors offer utilities the ability to increase transmission capacity using existing transmission towers, making them an attractive solution for grid upgrades.
Working Capital and Balance Sheet Management
Management acknowledged that higher raw material prices increased inventory values by 20–30 percent, resulting in a rise in debt levels compared to March despite inventory volumes remaining largely unchanged. Borrowings were also influenced by two consecutive quarters of strong revenue growth.
However, management emphasised that receivable days remain well controlled and working capital turnover continues to exceed 4 times, supported by disciplined customer selection and ongoing efforts to reduce borrowing costs through improved credit ratings.
In conclusion, Dynamic Cables is entering its next growth phase with multiple long-term catalysts, including capacity expansion, the launch of e-beam technology, and its strategic entry into the US market. Coupled with opportunities in solar cables, data centre infrastructure, and HTLS conductors, the company is strengthening its growth pipeline.
If execution remains on track and demand continues to improve, these initiatives could support sustained revenue growth and potentially drive the company’s next phase of expansion.
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