Established track record and experienced management
UICUL was erstwhile acquired by LPIPL in June 2021, who held 51 percent stake. In FY2026, LPIPL has diluted its stake to 3 percent, however, the shares remain within the promoter group. The promoters have an experience of more than three decades in the cable and conductor industry and have established relationships with various customers and suppliers. The company currently caters to various sectors including infrastructure, construction, engineering and power transmission sectors, both in public and private sectors.

Moderate financial risk profile
The financial risk profile of the company is marked by moderate networth, low gearing and adequate debt protection metrics. The tangible networth stood at Rs. 138.04 Cr. on March 31, 2025 post accretion. The gearing continues to remain below unity at 0.19 times on March 31, 2025. The TOL/TNW levels also remained at 0.36 times in FY2025 against 0.44 times in FY2024.
The debt protection indicators are also adequate with interest coverage ratio (ICR) of 4.18 times and debt service coverage ratio (DSCR) of 2.95 times in FY2025.

Modest scale of operations
UICUL reported revenue of Rs. 159.98 crore in FY2025 as against Rs. 175.28 crore in FY2024. However, the EBITDA margin improved substantially to 10.30 percent in FY2025 from 3.67 percent in FY2024. The company introduced a new high-carbon steel product during the year. for which UICUL procured raw materials at relatively favourable prices in FY2025 and, owing to the timing difference between purchase and delivery, recorded exceptional gains. However, the margins are expected to normalise to their regular levels going forward. Further, the company recorded a revenue of Rs. 118.74 Cr for 9M FY2026 as against Rs. 88.66 Cr for the corresponding period in the previous year.

­Intensive working capital operations
The working capital operations are marked by high gross current assets (GCA) of 336 days on March 31, 2025. These are primarily driven by the debtor days that stood at 239 days and inventory days of 86 on March 31, 2025. On the other hand creditor days stood at 62 days on March 31, 2025. The current ratio stood healthy at 3.54 times on March 31, 2025.

Operations exposed to cyclicality in the stainless-steel industry and competition in export markets
The Indian steel industry is susceptible to fluctuations in the stainless-steel industry, where demand patterns tend to mirror the performance of downstream sectors such as construction, real estate and engineering goods. Any slowdown in these sectors can affect order flows and operating performance. The industry also faces  stiff competition from large-scale manufacturers based in China, Taiwan and South Korea, particularly in established markets like the EU and the US. These players benefit from sizeable capacities and cost efficiencies.