PARACABLESNSEParamount Communications Limited· Cables - PowerHighNeutral
Announced Sat, 23 May · 20:19 IST

Paramount Communications Limited has informed the Exchange about General Updates-Earning release for the fourth Quarter and Year ended 31.03.2026.

Revenue Growth 20pctPat NegativeEbitda Margin CompressionNegative Operating CashflowResults View source PDF

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AI summary

Paramount Communications reported FY26 revenue of Rs 19,122 Mn, up 22.8% YoY (FY25: Rs 15,567 Mn), driven by strong domestic B2B institutional growth of 37.3% to Rs 10,013 Mn and resilient export revenue of Rs 5,504 Mn (+13.9%) despite US tariff headwinds since August 2025. EBITDA fell to Rs 1,175 Mn (6.0% margin) vs Rs 1,333 Mn (8.5%) in FY25, and PAT dropped sharply to Rs 602 Mn (3.1%) from Rs 867 Mn (5.5%), a 30.5% decline. The PAT decline was caused by US tariff disruptions impacting Q2-Q4, raw material volatility, and a one-time Rs 25 Mn labour code expense. Two non-recurring items: Rs 278 Mn keyman insurance maturity (Other Income) and Rs 25 Mn labour code impact. Q4 FY26 showed strong sequential recovery with revenue +24.5% QoQ and PAT +175% QoQ as the company pivoted to domestic (domestic share rose from 69% to 71%). Operating cash flow turned negative at Rs 420 Mn due to a one-time trade receivables build-up from high H2 domestic dispatches, expected to normalise in early FY27. A new greenfield plant at Narmadapuram (MP) is underway with ~Rs 300 Cr investment, targeting partial commissioning in Q1 FY28 and Rs 500 Cr turnover in FY28 from EHV/specialised transmission cables.

Likely market impact

The PAT decline and margin compression are significant concerns; however, Q4 recovery, the US Supreme Court tariff ruling restoring India's competitive position, and the Rs 5,833 Mn order book (87% domestic) provide near-term stability. Negative operating cash flow is a temporary working capital issue. The Narmadapuram plant positions the company for FY28+ growth in high-value EHV segments.