Any outlook for FY27 for the business as a whole?
Today, in this financial year, we are at 5.4% export contribution to overall top line. And we have to get to 10% by FY30. So we are definitely inching towards that figure. Difficult to give a firm number because these are more institutional sales in nature, but it will definitely be higher than where we are today. Per Project Spring guidance, in Cables & Wires, we will grow at 1.5x of market growth.
Quantify Middle East-related disruptions impact in March?
We had low single-digit Cable & Wire volume growth. Q4 is highest, best for the industry. Private manufacturing industries who use gas as a feedstock, they did not have visibility of supply beyond 3-5 days. Their inputs were completely rationed by government. 90% of our business happens through channel. PVC prices went up by 60% to 80% in the first fortnight of March. There was definitely some impact in terms of lifting from our distributors, primarily because the secondary sale was not moving at the pace at which we anticipated in March. Difficult to quantify. Typically, March is the best month and Q4 is the best quarter.
With Middle East disruption and US tariffs normalizing, how do you see exports recovery in FY27?
Difficult to give a number. In the last 3 to 4 months, we've re-established our distribution network in the United States. United States forms around 15% to 20% of global export market. North America contributed around 40% of our FY26 exports. South America contributed almost 20%. Middle East 15-16%. Big demand drivers: North America, EU, South America. We are well poised to deliver higher growth in exports, and that should actually be at a more aggressive pace because we have to reach 10% of overall top line by FY30. And hopefully, we should get there sooner.
Volume target for this quarter — how much could be attributable to external factors?
There's no volume target for quarter. If you can look at 12-month period, it's still understandable. It's ultimately an institutional B2B kind of a business. It's not an FMCG business. If you look at full year basis, we'll continue to deliver 1.5x of GDP growth. Whatever happened in March, some bit of it, you can attribute it to some kind of a black swan event.
FY27 capex focus areas? And solar contribution in FMEG revenue?
We don't give breakup of intersegment contribution in FMEG. But solar continues to be the strong driver, delivering 2x of growth over last year. And that will continue because of central and state government schemes on rooftop solar. On capex — per Project Spring, around 90% of that will go into Cable & Wire capacity expansion alone. Some 5% will go into backward integration and another 3-4% may go into FMEG expansion. 90% will continue to go into Cable & Wire expansion.
On the Cables & Wires sales growth of 30%, can you break up the approximate volume growth and the price hikes taken from Jan?
Revenue growth has been 30% for the quarter. If I speak of volumes, it's been combined volume growth of low single digit for both cable and wire put together. Cables has outpaced wires. In terms of price hikes, we've taken approximately 18% to 19% price hike cumulatively from Jan to March.
How is the demand situation now? It was severely impacted in March.
Q4 last year for us was very strong. So at the back of that base, we've been able to deliver some volume growth and of course, revenue growth of 30-odd percent. We have definitely seen some moderation in demand, primarily due to so much of volatility amidst Middle East escalation. But if you look structurally, the domestic demand is very robust. Power capacity additions in the last financial year itself has been around 55 gigawatts to 56 gigawatts, which is almost double of what happened in FY25. Union Budget INR 12.2 lakh crores announced; private capex add around INR 36 lakh crores to INR 37 lakh crores to be invested in FY27. 57% of these investments are going into areas which are going to convert into strong demand for cable and wire. In our industry, the demand doesn't extinguish. It can only defer by 1 week, 2 weeks here and there. Next 12 months, not just 12, but 24-36 months are going to be very promising for our sector.
On exports — Middle East was a hiccup. From here on, do you see exports resuming over coming quarters? Which sectors most optimistic?
Exports is actually going to be a big lever of our growth going forward. In full year, last financial year, the Middle East contributed around 16% of our exports topline. Going forward, the power sector will continue to drive strong growth. EU, US grid infrastructure is 50-55 years, 60 years old. All of these need modification. The tariff situation has more or less settled. In U.S., we've started re-establishing our distribution network, which is the largest market for export. Middle East, which is currently severely impacted, we believe that it's a matter of time where that demand will come in a bigger way.
On margin side — institutional sales mix shift this quarter?
In last quarter, Puneet, what happened was institutional sales were higher by about 2-3% compared to channel. Our margins usually in channel are 3-4% higher compared to institutional, which is you have to bid those tenders and win on L1. So our margins are better on channel. And if institutional mix grows, then it moderates our margins.
Status on capacity utilization?
It's mid-70s, 75-76% utilization. We've continued to expand our capacity. As soon as we reach 70-75% utilization, considering our AOP, we invest far ahead of time. This year, FY26, we've invested almost INR 1,500 crores. We're continuing to expand in line with our Project Spring guidance of INR 6,000 crores to INR 8,000 crores capex by financial year 2030. At times, we have reached early 90s, but the standard percentages always remain around 80-85%.
Significant cash on balance sheet — any use of cash in mind, acquisition or new business?
Currently, we are continuing to focus on these 2 things. One is pumping cash into our capex from internal accruals. Second is increasing the dividend payout. This year, we've increased it and reached payout ratio of 27.2%. We keep evaluating certain M&A proposals and opportunities inside India and outside of India. If something really aligns with our strategy, definitely, we will like to invest in that. But so far, there is nothing that we can see in the near to mid term.
On EBIT segment margin for cables / overall EBITDA — where do you see it settling in next 2, 3 quarters?
On primary sales growth — per Project Spring guidance. If market is expecting 12% market growth, then we should deliver 18% and plus. Whatever is the price, it is the pattern of the industry that we pass through that price to our customers. Over long term, we should expect 11% to 13% EBITDA margin. In the near to mid term, we may expect 12% to 14% EBITDA.
In the near term, any challenge to primary demand or secondary demand?
In our industry, if a capex is decided and especially the stage at which India is — Indian government is pushing the pedal in terms of increasing renewable generation capacity, increasing the transmission and distribution sector. Demand can only defer by 1 week, 2 weeks, 3 weeks. It cannot extinguish. If you look at full 12-month period coming ahead, demand forecast is very robust and strong. Real estate — top 8 cities — 3.5-3.6 lakh units launched and sold; first 3 months of this calendar year 0.8-0.9 lakh units launched. Demand not just for this year but next 2 to 3 years should be very robust. Prime driver will continue to be the power sector. New drivers yet to fully come: data centers, AI-driven demand, defense, EV charging cable infrastructure.
Capacity utilization — do we have any capacity coming in soon in FY27? Risk of running out?
Full year basis, we were at 70-75% utilization. There is room for growth here. We've already pumped in INR 1,500 crores in this financial year. And we are continuing to pump INR 1,200 crores to INR 1,600 crores every year, adding capacity. This guidance under Project Spring is considering the demand outlook for next 4 to 5 years. So there will be no scenario where we'll be out of capacity.
Peer companies say demand is strong but they had capacity constraint. Why are we also facing volume growth challenges?
We will not follow what others are saying. If you look at Q3, peers had capacity constraint, but we recorded 40% volume growth in both Cable & Wire together. Today, our volume growth for the full year is 18% which is industry leading. If market has possibly grown at 11-12%, we've delivered 18% volume growth. Revenue growth 30%. Our base is very high. The next biggest player is half our size.
EHV capex status — when do you see commissioning?
EHV is very much on track. Capacity is expected to come on stream by end of this calendar year. And in FY28 revenues, we can see some contribution from EHV capacity because it's a tender-based business, and we see a ready market because about 50% of domestic consumption today is coming from imports. In FY28, you'll be able to see revenues from EHV.
Volume growth 18% for full year — split between wires and cables? Key sectors contributing?
Cables growth was slightly better than wires. 18% volume growth resulted in a market share gain of around 3% to 4% in this financial year alone. Demand split: power sector consumes around 40% to 45% of cables. Manufacturing and private industries consume around 35% to 40% of cables. Mobility (railways, roadways, highways, seaports, airports) consume around 10% to 12% of cables. Energy exploration (oil and gas, coal, mining) consume around 5-6%. Balance is niche (defense, EV charging infrastructure).
Solar capacity additions doubled last year — growth on Y-o-Y basis may moderate. Industry growth outlook?
If you look at period from 2016 to 2020, the intensity at which actual execution is happening today is far better. 2015-2020 / 2020-2025 — transmission line execution on ground was around 15,000 circuit kilometers average. Going forward, the anticipation is that it should go to 21,000 - 22,000 circuit kilometers per year. In power sector alone if INR100 is spent on transmission and distribution, the translation to cable requirement is around 15% to 20%. Even if it moderates, the intensity will be still far higher than how it has been in the past.
Delay in passing on price inflation — same in Q4? Any inventory gain?
In the very first fortnight of January alone, we were able to pass on everything. We were completely in tandem with the raw material price throughout the quarter. We don't buy on spot. We have a hedging mechanism in place. So we don't have any inventory gain unlike peers. We are always at a position where we are able to manage within a band, thanks to the mechanism that we have built over the years.
PVC doubled in first fortnight — passed on? XLPE availability?
We completely pass on all the raw material price, be it aluminum, copper or be it PVC. So there has been no challenge with respect to passing on the price. On availability of XLPE and other compounds — thanks to backward integration, we typically purchase only the raw resins, and we do compounding in-house. Thanks to our heavy inventory, we are comfortable for possibly in the first quarter of coming year as well. We have a good amount of diversified base of vendors for compounds and resins. So we are not at all concerned about raw material security.
Institutional mix quantification for Q4 and FY26?
Our channel to institutional contribution has always been 90% to 10%. 90% is channel, 10% is institutional. So when we say a couple of percentage points higher in institutional, you can add to make 10% to 12%, 12% of overall top line. If 3% to 4%, you can make it 13% to 14% for the quarter.
EBITDA margin for Cable & Wire segment for Q4 and FY26?
For the fourth quarter it was higher. So definitely around 14%, 14-plus percent. And FMEG, of course, was also mid-single-digit EBITDA margin. Full year — overall company level is 13.9% and Cable & Wire was definitely above that. And FMEG continues to be mid-single digit.