Dynamic Cables Limited (DCL), a leading manufacturer of cables and conductors, has received a significant boost to its credit profile. India Ratings and Research (Ind-Ra) has upgraded the company's bank loan facilities rating to 'IND A' from 'IND A-', while maintaining a stable outlook. This upgrade applies to bank loan facilities worth Rs 3,560 million.

Key Highlights of the Credit Rating Upgrade

• Rating Upgrade: Long-term rating upgraded to IND A from IND A-
• Outlook: Stable
• Short-term Rating: IND A1 (Affirmed)
• Facilities Covered: Bank loan facilities worth Rs 3,560 million

Factors Driving the Upgrade

The rating upgrade is primarily attributed to DCL's improved operational scale and profitability. Here are the key financial indicators that supported the upgrade:

Capital Infusion and Debt Reduction

In June 2024, DCL raised Rs 965 million through a preferential share allotment. This capital infusion has played a crucial role in:

1. Supporting ongoing capital expenditure
2. Reducing debt levels
3. Improving overall credit metrics

Order Book and Future Outlook

As of September 2025, DCL boasts a robust unexecuted order book of Rs 7,210 million. This strong order pipeline provides visibility for future revenue growth and operational stability.

Expansion Plans

DCL is currently undertaking a greenfield capital expenditure project in Rajasthan, focused on manufacturing cables for the renewable energy sector, particularly solar cables. Key points about this expansion include:

• Location: Reengus, Sikar district, Rajasthan
• Expected Completion: March 2026
• Impact: Diversification of product profile and potential margin improvement

Industry Dynamics and Challenges

While the upgrade reflects DCL's strong performance, the company operates in a competitive industry with inherent risks:

1. Susceptibility to volatility in copper and aluminum prices
2. Intense competition from both organized and unorganized players
3. Dependence on economic conditions in end-user industries such as power, industrial, and railway sectors

Conclusion

The credit rating upgrade for Dynamic Cables underscores the company's improved financial performance, strategic capital allocation, and strong order book. As DCL continues to expand its operations and diversify its product range, particularly in the renewable energy sector, it is well-positioned to maintain its growth trajectory. However, the company will need to navigate industry-specific challenges and maintain its financial discipline to sustain its improved credit profile in the long term.

Investors and stakeholders should view this upgrade as a positive indicator of DCL's financial health and future prospects, while remaining mindful of the inherent risks in the cable manufacturing industry.

Dynamic Cables Limited , a leading player in the power cable industry, has reported its highest-ever first half revenue and profitability for H1 FY26, demonstrating robust growth despite challenging market conditions.

Financial Highlights

The company's performance for H1 FY26 showcases significant year-on-year improvements:

Order Book and Business Mix

As of September 30, 2025, Dynamic Cables' order book stands at Rs 721.00 crores, providing strong revenue visibility for the coming quarters. The company's customer-wise contribution for H1 FY26 reflects a diverse mix:

In terms of product mix, the company reported:

Operational Updates

The company has successfully enhanced its monthly production capacity from Rs 100.00 crores to Rs 135.00 crores through debottlenecking initiatives. This expansion, completed with a CAPEX of approximately Rs 15.00 crores, positions Dynamic Cables to meet growing market demand more effectively.

Challenges and Outlook

Management noted a temporary slowdown in demand due to an extended monsoon affecting EPC execution. However, they expect improvement in the third and fourth quarters as weather conditions normalize and project execution picks up pace.

Expansion Plans

Dynamic Cables' ongoing capacity expansion plan remains on schedule for commissioning in the second half of FY26. This includes a new greenfield plant featuring an E-beam facility for solar DC cables, aligning with the company's focus on the renewable energy sector.

Management Commentary

Ashish Mangal, Managing Director of Dynamic Cables, commented on the results: "Our robust order book continues to reflect the deep trust and confidence that our customers place in our capabilities, reaffirming our strong market position. We believe that our new growth initiatives will lay a solid foundation for long-term sustainable expansion."

He added, "Looking ahead, we remain optimistic about the long-term opportunities in India's power infrastructure sector, supported by strong tailwinds from renewable energy, rural electrification, underground cabling, and the transition to higher voltage lines driven by rising per capita power consumption."

Dynamic Cables' strong performance in H1 FY26, coupled with its strategic expansion plans and focus on high-growth sectors like renewable energy and smart metering, positions the company well for continued growth in the evolving power infrastructure landscape. As the company navigates short-term challenges such as extended monsoons, its robust order book and operational improvements provide a solid foundation for future success.