Established track record of operations
The company, led by Mr. Deepak Goel and Mr. Navin Kumar Saffar, has a three-decade history in manufacturing aluminium conductors and power cables. Beyond this, it has expanded into infrastructure turnkey projects, specializing in transmission and distribution lines and power substations wherein LPIL has become a prominent player in the eastern part of India, collaborating with various government and private entities. Further, in March 2025, LPIL has tied up with US based company (TS Conductor Corp.) for manufacturing high-tension low sag (HTLS) conductors for which the company has completed the necessary qualifications to participate in the tenders. The company has participated in tenders aggregating approximately Rs. 1,000 crore and expects to secure around 10–15% of the tendered value. As on 9MFY26 LIPL has current capacity of 85,448 MT for Production of Cables & Conductors. In September 2025, the company has filed draft red herring prospectus (DRHP) with SEBI to raise funds vide IPO in the near term with the primary object to repay/prepay existing borrowings in part or full and in Feb'2026 the Company has received final approval from SEBI for the same.

Scale of Operation with Improvement in Margin:
The company’s operating revenue increased to Rs. 2,440.15 crore in FY25 from Rs. 1,618.62 crore in FY24, driven by continuous capacity expansion and timely execution of EPC projects. Operating margins improved moderately to 9.69% in FY25 from 9.39% in FY24.PAT margins also strengthened to 4.12% in FY25 from 2.34% in FY24 on account of higher interest income on fixed deposits. In FY26, revenues moderated marginally to around Rs. 2,327 crores, primarily owing to a shift in revenue mix toward higher-margin HT cables, whose contribution rose to 25% from 12% in the previous year. While the higher share of HT cables led to lower volumes, the higher realizations supported profitability, with operating margins improving to 13.66% in FY26(estd). Furthermore, LPIL has completed the necessary qualifications to participate in HTLS conductor tenders. The company has participated in tenders aggregating approximately Rs. 1,000 crore and expects to secure around 10–15% of the tendered value. This segment is also expected to support revenue growth over the medium term. The business continues to benefit from healthy medium-term visibility, supported by an outstanding order book of Rs. 2,442.92 crore as on March 31, 2026, comprising Rs. 723.54 crore from manufacturing orders and Rs. 1,719.38 crore from EPC contracts, the latter typically executable over a two-year period. Acuite believes operating performance is expected to improve, supported by the unexecuted order book and steady order inflow in the manufacturing segment; however, the sustainability of current margins will remain a key monitorable.

Healthy financial risk profile
The company’s financial risk profile is marked by healthy net worth, low gearing and comfortable debt protection metrics. The net worth of the company stood at Rs. 607.62 Cr. as on March 31, 2025, as compared to Rs. 509.52 Cr. as on March 31, 2024, owing to accretion of profits to reserves. The total debt of the company stood increased at Rs. 477.98 Cr. as on March 31, 2025 (Rs. 370.99 Cr. as on March 31, 2024) on account of additional capex debt availed by the company along with increase in working capital borrowings. The debt profile consists of Rs. 118.12 Cr. as long-term borrowings, Rs. 335.84 Cr. as working capital borrowings and remaining are the unsecured loans of the promoters. Therefore, the gearing (debt-equity) stood at 0.79 times in FY25 (0.73 times in FY24). Further, the debt protection metrics stood moderate marked by interest coverage ratio of 2.60 times in FY25 (1.89 times in FY24) and debt service coverage ratio of 1.92 times in FY25 (1.46 times in FY24). The Total Outside Liabilities/Tangible Net Worth (TOL/TNW) stood at 2.27 times in FY25 (2.29 times in FY24) and Debt-EBITDA stood at 1.87 times in FY25 (2.24 times in FY24).Going forward, the financial risk profile of the company is expected to improve further on account of potential fund raise plans through IPO, reduction in borrowings and steady cash accruals.

Intensive working capital operations
The company’s working capital operations remain intensive, as reflected in Gross Current Assets (GCA) of 260 days as on March 31, 2025, though improved from 337 days in the previous year. The elevated GCA levels are primarily driven by high receivables and inventory, inherent to both the manufacturing and EPC segments. Debtor days stood at 154 days in FY25 (161 days in FY24), with certain customer-specific conditions leading to elongated receivable cycles, particularly for bulk orders where payments are released only upon complete dispatch; however, these orders are largely LC-backed, mitigating counterparty risk. The EPC segment naturally carries higher working capital intensity due to milestone-based billing, retention money, and longer project execution cycles. Inventory days improved significantly to 79 days in FY25 from 132 days in FY24, supported by higher execution under the EPC segment, with an average holding period of 2–3 months. Creditor days also improved to 145 days in FY25 (170 days in FY24). Acuite believes that working capital management will continue to remain intensive over the medium term owing to the inherent nature of the company’s operations.

Susceptibility of profitability to raw material cost
Copper and aluminum, being the key raw materials, constitute approximately 60% of LPIL’s total raw material requirements, making its profitability margins susceptible to fluctuations in their prices. However, the company mitigates this risk to some extent by procuring these materials at prices based on London Metal Exchange (LME) along with price escalation clauses in the contract agreements. Additionally, since the cables and conductors sector primarily caters to the infrastructure industry, which is inherently cyclical, any substantial decline in demand, pricing or disruption in supplies could adversely impact LPIL’s operating margins and cash flows which shall remain a key rating monitorable.