Systematic Industries turns debt-free as FY26 revenue rises 24%

Systematic Industries Limited achieved a net debt-free status in FY26 while recording a 24% year-on-year revenue increase to ₹5,563 million, bolstered by its strategic transition into optical fiber and power transmission infrastructure. The company’s Profit After Tax (PAT) stood at ₹205 million, with EBITDA reaching ₹405 million, reflecting a CAGR of 20% in revenue, 40% in EBITDA, and 49% in PAT from FY23 to FY26. This financial performance underscores the firm's successful pivot from a legacy steel wire manufacturer to a fully integrated player in India's digital and power transmission sectors.

Financial Performance and Strategic Shift

Management emphasized that the FY26 revenue mix remained approximately 97% legacy steel wire, but the strategic focus is now squarely on high-growth "New Age" segments including Optical Ground Wire (OPGW), Optical Fiber Cables (OFC), and Aluminum Clad Steel (ACS) wire. These new verticals are expected to drive double-digit profitability and significantly contribute to the bottom line in FY27 and FY28. The company has committed to maintaining financial discipline to preserve its net debt-free status, ensuring flexibility for future capital expansions.

Landmark Orders and EPC Strategy

systematic industries secured its first EPC contract from Power Grid of India for the end-to-end execution of OPGW for the Agra-Kumher section. Additionally, the company received a landmark order worth over ₹100 million from Indian Railways for RDSO-approved 24/48-fibre armoured OFC. Looking ahead, the enterprise is eligible to bid for upcoming OPGW tenders estimated at ₹10,000 million in the coming year. Management clarified that EPC services will be strictly limited to end-to-end OPGW projects where the company's manufactured product constitutes 60-70% of the project cost, avoiding a transition into a general EPC company.

Operational Infrastructure and Risk Factors

The company operates four manufacturing units with a combined capacity exceeding 1 lakh metric tons, with legacy plants currently operating at 75% utilization. High-end and import-substitute products constitute 20% of steel wire volume, with a target to expand this share to 30-35%. Exports contribute 8-10% of total revenue across over 30 countries, with a strategic target to reach 15%. However, the company faces risks including raw material price volatility due to dollar appreciation and supply chain constraints for optical fiber preforms. A one-time provision for gratuity and leave provisions in the FY26 balance sheet also temporarily impacted short-term profit growth.

Action Items and Targets

Task Description	Key Details / Scope	Target Timeline
Project Commissioning	Complete end-to-end commissioning of OPGW EPC project for Power Grid (Agra to Kumher)	Dec 2026
Order Fulfillment	Execute RDSO-approved fiber cable orders for Indian Railways	Within specified non-public timelines
Tendering Participation	Actively bid for the ₹10,000 million OPGW tender pipeline	FY27
Capacity Ramp-up	Operationalize and scale "New Age" assets for revenue contributions	March 2027/2028

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.42%	-3.05%	-9.46%	-0.79%	-4.56%	-4.56%

Systematic Industries Limited reported a 16.4% increase in net profit to ₹210.1 million for the financial year ended March 31, 2026, compared to ₹180.6 million in the previous year. Revenue from operations for the year rose 23.9% to ₹5,563 million from ₹4,492 million in FY25. The company achieved a net-debt free status as on March 31, 2026, strengthening its balance sheet through repayment of borrowings. The board approved the standalone audited financial results for the half year and financial year ended March 31, 2026, at a meeting held on May 26, 2026.

Financial Performance

The company's EBITDA for FY26 stood at ₹405 million, up 9.7% from ₹369 million in the prior year, with an EBITDA margin of 7.3%. Basic earnings per share (EPS) for the year adjusted to the bonus issue were ₹10.74, compared to ₹10.75 in the previous year. For the half year ended March 31, 2026, the company recorded a net profit of ₹117 million on revenue of ₹3,006 million.

The following table summarises the full-year standalone financial performance:

Metric	FY26 (₹ in Mn)	FY25 (₹ in Mn)
Total Revenues	5,563	4,492
EBITDA	405	369
Net Profit	210	181
Basic EPS	10.74	10.75

Strategic Developments

During the year, the company secured its first EPC contract from Power Grid Corporation of India Limited (PGCIL) for the supply and installation of Optical Ground Wire (OPGW) cable. It also received a landmark order from Indian Railway worth over ₹100 million for the supply of optical fibre cables. Additionally, the company exported OPGW cables at the beginning of FY27. Management indicated a robust order pipeline of ₹250 million for new product segments.

Board Decisions

The board appointed M/s KDA & Associates, Practicing Company Secretaries, as the secretarial auditors for the financial year 2026-27 based on the recommendation of the Audit Committee. The statutory auditors, M/s Hardik Vora & Associates, issued an audit report with an unmodified opinion on the standalone financial results.