Orient Cables (India) IPO (25 Sep-29 Sep) Analysis

Sep 27

8 min read

Updated: Oct 4

IPO Analysis | Mainboard (BSE and NSE) | Book Built Issue (Fresh Issue and Offer for Sale) | Regulation 6(1)

Based on Red Herring Prospectus dated September 21, 2026 | Networking, Power and Optical Fibre Cables | New Delhi, National Capital Territory of Delhi

Orient Cables (India) Limited was incorporated on September 15, 2005 as Orinet Cables (India) Private Limited, corrected to Orient Cables (India) Private Limited in 2007, and converted to a public company in December 2024.

The registered office is at House No. 8, BLK D, Second Floor, Ashok Vihar PH 1, New Delhi 110052, with a corporate office in Gurugram, Haryana. The website is www.orientcables.in and the CIN is U31300DL2007PLC140809.

The promoters are Vipul Nagpal, Garima Nagpal, Vardaan Nagpal, Vipul Family Trust and Garima Family Trust. Mona Kaushik is Company Secretary and Compliance Officer. The statutory auditor is Khandelwal Jain and Co., Chartered Accountants.

The company manufactures networking cables and passive networking equipment across four segments: Networking Cables and Solutions (CAT5, CAT5e, CAT6 and CAT6A cables, patch cords, CCTV and coaxial cables), Specialty Power, Optical Fibre Cables and Solutions, Wire and Cable Harness Assemblies and EV Charging Guns Cable Assembly, and Other Allied Products such as keystone jacks and power cords.

It runs two manufacturing units in Bhiwadi, Rajasthan and has recently commissioned a third facility in Bengaluru. Products are customised to customer specification for telecom, broadband, data centre, renewable energy, smart building, system integration, FMEG and automobile buyers.

Networking Cables and Solutions contributed 78.23% of FY2026 revenue, and Specialty Power and Optical Fibre Cables contributed 21.37%. The company is a B2B supplier and, per the 1Lattice industry report commissioned for this RHP, holds an approximately 22.9% share of the networking cables market in FY2026 and supplies two of India's top three telecom companies by revenue. The financial year ends March 31.

Key Basics

This is a mainboard book built issue on the BSE and NSE, with NSE as the designated exchange, made under Regulation 6(1) of the SEBI ICDR Regulations, meaning the company meets the standard profitability and net worth track record test. The RHP is dated September 21, 2026. The Offer Price, Price Band and lot size remain undetermined at this stage.

Field	Value
Document Type	Red Herring Prospectus dated September 21, 2026. Price Band, Offer Price and lot size are [TBD].
Platform	Mainboard, BSE and NSE. Designated Stock Exchange: NSE.
Issue Structure	Fresh Issue of Rs.32,000.00 Lakhs plus an Offer for Sale of Rs.23,200.00 Lakhs by the four promoter selling shareholders. Total Offer Rs.55,200.00 Lakhs.
Face Value	Rs.1 per Equity Share
Pre issue Equity	10,20,35,000 Equity Shares, 100% held by the promoters and promoter group
Selling Shareholders	Vipul Nagpal (Rs.6,720.00 Lakhs), Garima Nagpal (Rs.1,570.00 Lakhs), Vipul Family Trust (Rs.5,200.00 Lakhs), Garima Family Trust (Rs.9,710.00 Lakhs), all promoters
BRLMs	IIFL Capital Services Limited, JM Financial Limited
Registrar	KFin Technologies Limited
Bid Dates	Anchor September 24, 2026. Bidding opens September 25, 2026 and closes September 29, 2026.

What distinguishes this issue is that all four selling shareholders are promoters, and the entire pre issue share capital, 100%, sits with the promoter and promoter group. There is no non promoter, non public category and no other pre issue investor. The Offer for Sale, at Rs.23,200.00 Lakhs against a Rs.32,000.00 Lakhs Fresh Issue, is a substantial partial exit by the family that has run the company since 2005.

How Will the IPO Money Be Used?

This is a Fresh Issue plus an Offer for Sale. The company receives no proceeds from the Offer for Sale; those proceeds go entirely to the four promoter selling shareholders.

Object	Amount (Rs. Lakhs)	Details
Capital expenditure on machinery, equipment and civil works at Manufacturing Facilities	9,150.00	Expands Unit II at Bhiwadi with 27 new machines and lab equipment, including tin electroplating, extrusion and twisting machinery, mostly quoted from vendors in India, Hong Kong and China. To be deployed Rs.300.00 Lakhs in Fiscal 2027, Rs.5,000.00 Lakhs in Fiscal 2028 and Rs.3,850.00 Lakhs in Fiscal 2029.
Repayment or prepayment of borrowings	15,550.00	The entire amount is scheduled for Fiscal 2027.
General corporate purposes	[TBD]	Capped at 25% of Gross Proceeds of the Fresh Issue.
Total Net Proceeds	[TBD]	To be finalised once the Offer Price is set.

The two quantified objects total Rs.24,700.00 Lakhs of the Rs.32,000.00 Lakhs Fresh Issue, about 77%. Capacity from the new machinery raises installed capacity from 8,95,776 km to 12,55,296 km of cable, a 40% increase, plus a large jump in unit based products from 50,40,000 to 1,72,80,000 pieces. None of the objects have been appraised by a bank or financial institution, though vendor quotations have been obtained for the specific machinery list.

Financial Performance

Figures are Rs. Lakhs, converted from the RHP's Rs. Millions. FY2024 and FY2025 figures are standalone; FY2026 and the quarter ended June 30, 2026 are consolidated following the incorporation of subsidiary OCL Greentech Private Limited in May 2025.

Revenue, EBITDA, and Profitability

Rs. Lakhs	FY2026	FY2025	FY2024
Revenue from Operations	1,17,165.40	82,495.80	65,776.70
EBITDA	9,639.70	8,385.80	5,882.40
EBITDA Margin	8.23%	10.17%	8.94%
Profit After Tax	5,381.30	5,332.10	4,006.90
PAT Margin	4.55%	6.41%	6.03%
EPS, Basic and Diluted (Rs.)	5.27	5.23	3.93
Return on Equity	25.84%	34.60%	37.26%
Return on Capital Employed	23.82%	36.46%	41.13%

Revenue grew 42.02% in FY2026 to Rs.1,17,165.40 Lakhs, a 33.46% two year CAGR from FY2024. Profit After Tax grew more slowly, up just 0.92% in FY2026 after growing 33.11% in FY2025, and EBITDA margin fell from 10.17% to 8.23%. Return on Equity and Return on Capital Employed both declined each year, from 37.26% and 41.13% in FY2024 to 25.84% and 23.82% in FY2026, as the equity and capital base grew faster than profit.

For the quarter ended June 30, 2026, revenue was Rs.48,915.60 Lakhs and profit after tax Rs.3,278.30 Lakhs, both not annualised.

Balance Sheet and Cash Flow

Rs. Lakhs	FY2026	FY2025	FY2024
Total Assets	58,078.50	42,718.80	29,321.80
Total Equity	23,583.80	18,070.10	12,754.30
Net Debt	22,300.00 (approx.)	11,200.00 (approx.)	2,900.00 (approx.)
Net Debt to EBITDA	2.31x	1.36x	0.49x
Net Working Capital Days	48	27	14
Net Cash from Operating Activities	(2,664.40)	(978.50)	4,218.10

NAV per share was Rs.23.11 as of March 31, 2026 and Rs.26.34 as of June 30, 2026. Net Debt to EBITDA rose from 0.49x in FY2024 to 2.31x in FY2026, and Net Working Capital Days more than tripled from 14 to 48 over the same period. Operating cash flow turned negative in FY2025 and FY2026, at Rs.978.50 Lakhs and Rs.2,664.40 Lakhs used respectively, reversing the positive Rs.4,218.10 Lakhs generated in FY2024, as inventories and receivables grew faster than payables.

How Does It Compare to Peers?

The RHP names eight listed peers: R R Kabel, Polycab India, Havells India, Finolex Cables, KEI Industries, Paramount Communications, Birla Cable and Sterlite Technologies, based on closing prices on NSE as of September 7, 2026. Orient Cables' own P/E cannot be shown until the Price Band is set.

Company	EPS (Rs.)	P/E (x)	NAV (Rs.)	RoNW (%)
Orient Cables (India) Limited	5.27	[TBD]	23.11	25.84%
RR Kabel Limited	43.52	54.85	227.61	20.83%
Polycab India Limited	176.95	46.69	805.50	24.58%
Finolex Cables Limited	46.67	26.29	397.93	12.33%
Havells India Limited	26.94	42.69	150.95	18.97%
KEI Industries Limited	96.02	48.99	697.17	14.75%
Paramount Communications	1.96	33.47	25.49	7.99%
Birla Cable Limited	5.63	63.54	93.63	6.33%
Sterlite Technologies	1.11	708.38	46.46	2.63%

Orient Cables' RoNW of 25.84% is around the middle of this set, ahead of Havells, Finolex, Paramount, Birla Cable and Sterlite Technologies, and behind Polycab and RR Kabel. The RHP's own quoted industry P/E range of 26.29 to 708.38, an average of 128.11, is wide because it mixes specialised cable makers with FMEG conglomerates and a telecom infrastructure company, Sterlite Technologies, whose 708.38x is an outlier driven by a near zero EPS of Rs.1.11 rather than genuine earnings strength. NAV per share at Rs.23.11 is the lowest among the peer set, consistent with Orient Cables being a smaller, more recently converted public company.

Key Risks

• The top customer alone supplied 25.75% of FY2026 revenue and 38.54% of revenue in the quarter ended June 30, 2026. The top 10 customers together supplied 76.52% of FY2026 revenue, and none of these customer names can be disclosed due to confidentiality.

• Return on Equity fell from 37.26% in FY2024 to 25.84% in FY2026, and Return on Capital Employed fell from 41.13% to 23.82% over the same period, even as revenue nearly doubled, meaning profitability has not kept pace with the balance sheet.

• Operating cash flow was negative in both FY2025 and FY2026, Rs.978.50 Lakhs and Rs.2,664.40 Lakhs used respectively, driven by Net Working Capital Days rising from 14 in FY2024 to 48 in FY2026.

• Net Debt to EBITDA rose from 0.49x in FY2024 to 2.31x in FY2026, and Rs.15,550.00 Lakhs of the Fresh Issue, nearly half, goes to repaying this same debt rather than funding new capacity.

• Orient Cables and its board face an active trademark dispute with Orient Electric Limited over use of the ORIENT name, including a counter civil suit from Orient Electric before the Delhi High Court seeking Rs.2,000.00 Lakhs in damages and an injunction on the company's own brand name.

• 100% of pre issue equity sits with the promoter family, and the Offer for Sale of Rs.23,200.00 Lakhs is entirely a promoter exit, so none of the selling proceeds come from any other pre issue investor with an independent view of valuation.

• The top 10 suppliers accounted for 69.71% of raw material purchases in FY2026, and the two primary raw materials, copper and PVC compounds, are priced off the London Metal Exchange and crude oil respectively, exposing margins to commodity swings the company has passed on to customers in the past but may not always be able to.

• The company has no long term supply contracts with raw material vendors and no long term contracts with customers, both relationships running on purchase orders that can lapse without notice.

• Contingent liabilities as of June 30, 2026 include bank guarantees of Rs.247.30 Lakhs and letters of credit of Rs.10,095.20 Lakhs given on the company's behalf, exposure that could crystallise if the underlying obligations are not met.

• The 1Lattice industry report commissioned and paid for by the company is the source of the 22.9% market share figure and the peer revenue CAGR comparison used in this RHP; the report itself cautions against undue reliance on its projections.

• A third manufacturing facility in Bengaluru only began commercial operations in May 2026, and Rs.9,150.00 Lakhs of new capital expenditure is still to be committed, so a meaningful share of the company's future capacity is not yet proven in production.

Positives to Note

• Revenue grew from Rs.65,776.70 Lakhs in FY2024 to Rs.1,17,165.40 Lakhs in FY2026, a 33.46% two year CAGR, against an average peer CAGR the company cites as 17.27% over the same period.

• The company holds an approximately 22.9% share of the networking cables market in FY2026, up from approximately 16% in FY2022, and is described in the RHP as one of India's top four players in the segment.

• The company reports relationships with its top 10 customers averaging over nine years, and supplies two of India's top three telecom companies by revenue as of March 31, 2026.

• Capital expenditure as a percentage of revenue has stayed material every year, from 2.56% in FY2024 to 9.79% in FY2025, funding organic capacity growth without relying solely on the IPO.

• The company has diversified into new product lines including E Beam irradiated cables, EV charging cable assemblies with TUV certification, and tethered drone systems, with Rs.12.10 Lakhs of orders already executed in the newest of these categories since its August 2025 launch.

• Contingent liabilities relative to the balance sheet are modest: bank guarantees and letters of credit together were Rs.10,342.50 Lakhs as of June 30, 2026 against Total Assets of Rs.74,318.50 Lakhs.

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