- ₹552-crore IPO opens September 25; price band fixed at ₹258–₹272
- FY26 revenue rises 42% to ₹1,181.67 crore; net profit remains nearly flat at ₹53.56 crore
- ₹320-crore fresh issue to fund manufacturing capex, machinery and debt repayment
- ₹232-crore OFS by promoter shareholders; minimum application 55 shares
- CMD Vipul Nagpal says company generally absorbs sharp input-cost increases
- Shares proposed to list on BSE and NSE on October 5
R MANICKAVASAGAM
AHMEDABAD, SEPT 23
Can Orient Cables convert India’s expanding digital infrastructure demand into sustained growth while protecting profitability against volatile raw-material costs? The networking and specialty cables manufacturer is preparing to enter the capital market with a ₹552-crore IPO, backed by manufacturing expansion plans and management’s emphasis on innovation and quality.
The IPO opens September 25 and closes September 29, with a price band of ₹258–₹272 per equity share. The issue comprises a fresh issue of ₹320 crore and an offer for sale (OFS) of ₹232 crore. Shares are proposed to list on the BSE and NSE on October 5. <Cite refs={ }/>
Revenue surges, but profit growth remains modest
Orient Cables reported FY26 revenue of ₹1,181.67 crore, against ₹831.86 crore in FY25, representing growth of about 42%. Net profit, however, edged up to ₹53.56 crore from ₹53.32 crore, indicating nearly flat year-on-year earnings.
The reported FY26 EBITDA margin stood at 8.23%, while the PAT margin was 4.55%. These figures put the spotlight on the company’s ability to translate higher sales into stronger earnings and sustain profitability as it expands.
Nagpal on input-cost volatility
Copper and other key raw materials can expose cable manufacturers to sharp cost fluctuations. Asked how much pricing power Orient Cables has to protect EBITDA margins when input costs rise, and how much of the increase is passed on to customers, Founder and CMD Vipul Nagpal said: “We are well positioned to protect EBITDA margins when input costs rise sharply and do not pass on the cost increase to customers generally.”
The statement places the company’s approach to cost absorption and margin management at the centre of investor scrutiny.
Innovation and quality as competitive strengths
Asked what distinguishes Orient Cables from established industry players, Nagpal cited product development, quality control and research capabilities.
“Our products are unique and continuously innovated in keeping with the customers’ needs and technical advancements. Our stringent quality control measures and in-house research and development help us to stay ahead of others in this business,” he said.
The company manufactures networking cables and passive networking equipment, catering to broadband, telecommunications, data centres, renewable energy and smart-building automation. Its portfolio includes networking cables and solutions, specialty power and optical-fibre cables and solutions, and allied products.
Fresh issue to fund expansion and debt repayment
The company proposes to utilise the ₹320-crore fresh issue proceeds for capital expenditure at its manufacturing facilities, including machinery, equipment and civil works; repayment or prepayment of specified outstanding borrowings; and general corporate purposes.
The fresh issue will provide funds to the company. The ₹232-crore OFS, by contrast, represents shares sold by existing promoter shareholders, with the proceeds accruing to them rather than Orient Cables.
Promoter shareholders’ OFS
The disclosed offer-for-sale amounts are:
- Vipul Nagpal: ₹67.20 crore
- Garima Nagpal: ₹15.70 crore
- Vipul Family Trust: ₹52 crore
- Garima Family Trust: ₹97.10 crore
The combined OFS totals ₹232 crore.
IPO dates, application and investor allocation
The anchor investor bidding period is scheduled for September 24. The public issue opens September 25 and closes September 29.
The minimum application is 55 shares, requiring ₹14,960 at the upper price band, excluding applicable charges. Secondary IPO information reports the indicative reservation as 50% for qualified institutional buyers, 15% for non-institutional investors and 35% for retail investors; investors should verify the final category-wise allocation in the offer document. <Cite refs={ }/>
JM Financial Limited and IIFL Capital Services Limited are the book-running lead managers, while KFin Technologies is the registrar to the issue.
Investor focus: growth, margins and execution
The FY26 numbers present a mixed picture: substantial revenue growth alongside nearly unchanged net profit. Investors may therefore examine whether the planned manufacturing investment can improve operating efficiency and earnings generation.
Nagpal’s comments on generally absorbing input-cost increases also raise questions about how the company manages commodity-price swings, procurement and pricing arrangements while protecting margins.
The use of fresh proceeds for capex and debt repayment will bring execution timelines, capacity utilisation and borrowing levels into focus. Investors can assess these alongside the company’s financial disclosures, risk factors and valuation in the offer document.
The IPO’s central investment questions are whether Orient Cables can sustain its revenue momentum, convert growth into stronger profits and execute its expansion while managing input costs.
