Dynamic Cables Limited (DCL) has achieved a significant milestone in its global expansion strategy by obtaining UL 854 certification from UL Solutions. This key regulatory approval for cable products marks a crucial step in the company's efforts to penetrate international markets, particularly the United States and other UL-regulated regions.

Certification Details

Strategic Implications

The UL Certification is expected to have several positive impacts on Dynamic Cables Limited's business operations:

Enhanced Export Capabilities

The certification enables DCL to supply UL854 standard cables to the United States market, opening up significant export opportunities.

Broader Market Access

Beyond the U.S., the certification may facilitate entry into other international markets that recognize or require UL standards.

Increased Product Acceptance

UL certification is widely recognized as a mark of quality and safety, potentially enhancing the acceptance of DCL's cable products in global markets.

Competitive Advantage

This certification may give Dynamic Cables an edge over competitors who haven't obtained similar approvals for international markets.

Company's Disclosure

Dynamic Cables Limited made this disclosure in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has stated that this information is available on their website ( www.dynamiccables.co.in ), demonstrating transparency in their communications with stakeholders.

While the financial impact of this certification is not immediately quantifiable, it represents a strategic move that could potentially lead to increased sales and market share in international markets.

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.