| Experienced management with established track record in the industry
ACTL benefits from the extensive experience of its promoters and management in the wire and cable manufacturing industry. The company is led by Mr. Shashank Kumar Jain, Managing Director, who possesses over 33 years of industry experience and has played a key role in establishing and expanding the company's operations. He is supported by Ms. Anubha Jain, who has over 20 years of experience, along with a qualified and professionally diverse Board comprising directors with backgrounds in engineering, management, human resources, and corporate governance. Over the years, the management has successfully expanded ACTL's manufacturing capabilities, diversified its product portfolio, and developed long-standing relationships with customers across sectors such as telecommunications, power, automotive, defence, metro rail, and industrial applications. The company's ability to provide customized cable solutions and maintain relationships with key customers and suppliers has supported its growth and market position. Acuite believes that ACTL will continue to benefit from its experienced management, established customer relationships, and technical expertise in the specialized cable manufacturing segment.
Steady growth in revenues and profitability margins
ACTL has reported steady growth with revenue increasing to Rs. 461.61 crore in FY2026(Prov.) from Rs. 391.23 crore in FY2025 and Rs. 318.85 crore in FY2024, supported by sustained demand for its products and enhanced capacity which started its operations from August 2025. Further, the company reported revenue of ~ Rs. 203 crore till 4MFY27 with EBITDA margins of ~9 percent during the same period. The company's operating profitability marginally improved, with the EBITDA margin rising to 9.38 percent in FY2026(Prov.) from 9.06 percent in FY2025, primarily on account of efficient cost management. The PAT margin stood at 5.22 percent in FY2026(Prov.) as against 5.29 percent in FY2025. Going forward, the company's scale of operations is expected to improve, supported by the ramp-up of the newly commissioned capacities. Despite higher depreciation and interest costs arising from the recently undertaken capacity expansion and the associated increase in debt levels, the company's profitability is expected to remain resilient, supported by improved operating leverage and steady demand from its end-user industries.
Healthy financial risk profile
The financial risk profile of ACTL is healthy, marked by healthy net worth, low gearing, and comfortable debt protection metrics. The company's net worth improved to Rs. 117.05 crore as on March 31, 2026 (Prov.), from Rs. 85.82 crore as on March 31, 2025, driven by profit accretion of Rs. 24.11 crore during FY2026 and infusion of fresh equity capital of Rs. 0.28 crore at a premium of Rs. 6.83 crore. Further, the company capitalized reserves through a bonus issue of Rs. 17.50 crore during FY2026, resulting in an increase in share capital. The gearing stood low at 0.51 times as on March 31, 2026(Prov.), from 0.17 times as on March 31, 2025, owing to additional debt availed for the capacity expansion and higher working capital requirements. The total debt stood at Rs. 59.45 crore as on March 31, 2026 (Prov.), comprising long-term bank borrowings of Rs. 21.70 crore, short-term borrowings of Rs. 32.15 crore and current maturities of long-term debt of Rs. 5.61 crore, compared with Rs. 14.68 crore as on March 31, 2025. The debt protection indicators remained comfortable with the interest coverage ratio (ICR) at 5.47 times in FY2026 (Prov.) against 5.81 times in FY2025 and the debt service coverage ratio (DSCR) at 3.57 times against 4.66 times, respectively. Further, the debt-to-EBITDA ratio stood at 1.36 times in FY2026 (Prov.) compared to 0.38 times in FY2025, while the Total Outside Liabilities/Tangible Net Worth (TOL/TNW) increased to 0.99 times from 0.71 times over the same period.
The company has incurred a capex of ~Rs. 30 crore towards the project, comprising investments in land, building and plant & machinery, during FY2026. Further, the company plans to incur an additional capex of Rs. 7-8 crore towards machinery in FY2027 to support future growth and capacity expansion. Acuite believes that the debt coverage indicators may witness a marginal moderation over the near term due to the higher debt levels associated with the capex. Nevertheless, ACTL's financial risk profile is expected to remain healthy, supported by its healthy net worth, cash accruals, and the anticipated improvement in operating performance arising from the ramp-up of the recently commissioned capacities over the near to medium term.
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| Moderately intensive working capital operations
The working capital operations of ACTL are moderately intensive, as reflected by Gross Current Assets (GCA) of 136 days as on March 31, 2026 (prov.), compared to 109 days as on March 31, 2025, majorly due to increase in Inventory days. Inventory days stood at 68 days in FY2026 (prov.) from 49 days in FY2025 primarily on account of higher levels of work-in-progress and raw material inventory. The debtor days stood at 59 days in FY2026 (prov.) as compared to 54 days in FY2025 and the creditor days stood at 47 days in FY2026 (prov.) from 44 days in FY2025. Further, the fund-based limit utilization stood at ~82.73 percent for Six months ended July 2026. Acuite believes that the working capital operations of the company will remain around similar levels over the medium term.
Susceptibility of profitability to volatility in raw material prices and forex risk
ACTL's profitability remains susceptible to volatility in the prices of key raw materials, primarily copper, aluminium, polymers and PVC-based compounds, which constitute a significant proportion of the company's input costs. Any sharp increase in raw material prices, coupled with the company's inability to pass on such cost escalations to customers in a timely manner, may exert pressure on its operating margins. Further, the company is exposed to foreign exchange fluctuation risk, as it imports approximately 6-7 percent of its raw material requirements, mainly polymers. However, the forex risk is partially mitigated through forward currency hedging contracts. Acuite believes that ACTL's profitability will continue to remain exposed to fluctuations in raw material prices and foreign exchange movements.
Highly competitive and fragmented industry
The wire and cable industry remains highly competitive and fragmented, characterized by the presence of several organized players as well as numerous unorganized participants, resulting in intense pricing pressure. The company also faces competition from established regional and national manufacturers operating across various cable segments. Nevertheless, ACTL benefits from over two decades of operating track record, established customer relationships, technical expertise in manufacturing customized cable solutions, and a diversified presence across telecommunications, automotive, defence, power and industrial applications. These factors provide a degree of competitive advantage and support its position in the industry.
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