PARACABLES Q1 FY27 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
₹529 Cr
verified against source
Revenue YoY
17.4%
reported change
EBITDA
Pending
latest reported figure
Source
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Actual signal trajectory
Where this quarter sits.
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What the record says.
Paramount Communications delivered a strong Q1 FY27 with revenue of INR 529.4 crores, up 17.4% YoY, driven by robust domestic demand across power infrastructure and a meaningful recovery in US exports following the resolution of tariff disruptions. The US Supreme Court's invalidation of EPA tariffs has restored the company's competitive position, enabling exports to rebound to INR 125 crores (29%+ of revenue) versus just INR 87 crores in Q4. Operating margins expanded 320 bps YoY to 6.6%, with management confident of reaching FY25 pre-tariff margin levels by Q4 FY27. The order book stands at INR 615 crores (74% power cables), providing 4-5 months revenue visibility. The Narmadapuram greenfield facility in Madhya Pradesh remains on track for partial commencement in Q1 FY28 with ~INR 500 crores revenue target for FY28, scaling to INR 1,200 crores by FY29. The company targets INR 5,000 crores revenue by FY31 with 15-20% growth expected in FY27 before the capacity ramp. Key risks include aluminum price volatility (mitigated via 3-4 month firm order policy) and ongoing geopolitical trade uncertainty despite current tariff normalization.
Colored figures show movement against the previous available record.
Guidance to track
- With existing plants at near-full utilization, management expects 15-20% revenue growth in FY27 before Narmadapuram capacity comes online in Q1 FY28.
- US exports are expected to reach INR 700-800 crores for FY27, a significant recovery from the INR 87 crore tariff-impacted Q4 FY26, with Q1 already at INR 125 crores.
- Management targets EBITDA margin (including other income at 7.1%) to return to FY25 pre-tariff levels by Q4 FY27, driven by US normalization and favorable domestic product mix (power cables at 57% of domestic revenue).
- The Madhya Pradesh greenfield facility (Phase 1 capex ~INR 300 Cr) is on track for partial commencement in Q1 FY28 with INR 500 crore revenue target, scaling to INR 1,200 crore by FY29 at 75% capacity utilization.
Risks flagged
- As a copper/aluminum cables manufacturer, raw material costs represent 70-80% of COGS. While management hedges via 3-4 month firm price orders and next-day metal booking, commodity swings can still impact margins if customer pass-throughs lag.
- Despite current tariff normalization after the US Supreme Court's EPA tariff invalidation, future policy shifts under a new US administration could reintroduce punitive duties, potentially again impacting India's competitive positioning versus Vietnam, South Korea, and Cambodia.
- Analyst asked about expected revenue contribution from 132 KV EHV cables at Narmadapuram. Management indicated approvals would come within ~1 year of manufacturing start, with full approvals by FY29 — a timeline that could slip given the certification complexity and regulatory requirements.
- Export order book stood at only INR 97 crores (vs INR 125 crore quarterly revenue run rate), raising questions about H2 export sustainability. Management attributed this to deliberate strategy of not taking long-duration firm price orders to avoid aluminum hedge risk, but this limits visibility.
Key quotes
- The patience is now paying off. Exports for the quarter stood at INR 125 crores contributing more than 29% of the revenue, up approximately 77% quarter-on-quarter against the tariff-compressed Q4 FY26 in which only 87 crores of US exports took place.
- Our problem has always been capacity, and as we build capacity we are very sure that we'll be there. We have set ourselves a target of crossing INR 5,000 crores in revenues by FY31 and we rather hope that we should be able to better that target to the extent possible.
- What happens is you have done your initial capex, you have spent your money on building everything and thereafter you keep on adding things and then the revenues come from those. So the capex multiple improves and one starts as I said we are looking at something like 1200 cr at 75% capacity utilization as one goes forward.
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