Delton Cables Limited , a pioneer in low-voltage and telecom cables, has announced its financial results for the second quarter of fiscal year 2026, revealing a mixed performance with strong revenue growth but a decline in net profit.

Revenue Growth and Profitability

The company reported a significant increase in revenue for Q2 FY26, with total income rising to ₹2,418.59 crore, up 37.97% from ₹1,762.92 crore in the same quarter last year. This robust top-line growth was primarily driven by strong performance in the EPC and Telecom segments.

Despite the impressive revenue growth, Delton Cables experienced a decline in net profit. The company's Q2 net profit stood at ₹63 crore, down from ₹85 crore in the corresponding quarter of the previous year. This represents a year-over-year decrease of approximately 25.92%.

Operational Performance

Delton Cables showed improvement in its operational efficiency, with EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for Q2 FY26 reaching ₹187.3 crore, a substantial increase of 79.46% compared to ₹104.3 crore in Q2 FY25. The EBITDA margin expanded to 7.76% from 5.97% year-over-year, indicating enhanced operational performance.

Segment-wise Performance

The company's revenue mix for H1 FY26 was as follows:

Notably, the EPC and Telecom segments showed strong growth, with increases of 51% and 86% respectively during H1 FY26. However, the Railways segment experienced a decline of 11%, which the management attributes to a strategic decision to reduce contribution from this segment due to its lower margin profile.

Financial Position

As of September 30, 2025, Delton Cables reported:

• Total assets of ₹5,047.22 crore, up from ₹4,281.11 crore as of March 31, 2025
• Total equity of ₹980.93 crore, compared to ₹904.52 crore at the end of the previous fiscal year

Order Book and Future Outlook

The company's order book stood at ₹4,250 crore as of September 30, 2025, with approximately 91% comprising orders from the higher-margin EPC and telecom segments. This robust order book provides visibility for future revenue growth.

Management Commentary

Vivek Gupta, Managing Director of Delton Cables, commented on the results: "Delton Cables has maintained a strong growth trajectory for Q2 and H1 of fiscal 2026. We have taken a conscious decision to focus on profitable growth and widen our product portfolio in segments which have growth and higher margin potential. Our efforts to achieve a double-digit EBITDA margin continue, and we hope to meet that target in coming quarters."

Conclusion

While Delton Cables has demonstrated strong revenue growth and operational improvements in Q2 FY26, the decline in net profit highlights challenges in maintaining bottom-line growth. The company's strategic focus on high-margin segments and a robust order book position it for potential growth, but investors may want to monitor profit margins and the impact of the company's segment-wise strategy in the coming quarters.

Delton Cables Limited, a prominent manufacturer of insulated wires and cables, has secured a significant legal victory at the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) in Chandigarh. The tribunal ruled in favor of the company, setting aside a show cause notice that had demanded central excise duty along with interest and penalty.

Case Background

The case stemmed from a show cause notice issued on December 18, 2013, which demanded central excise duty of Rs. 4,97,113, along with interest and penalty. The dispute centered around the classification of waste and scrap generated during the manufacture of insulated wires and cables.

Tribunal's Decision

The CESTAT Chandigarh bench, comprising Hon'ble Mr. S. S. Garg, Member (Judicial), and Hon'ble Mr. P. Anjani Kumar, Member (Technical), delivered the verdict. The tribunal ruled that:

1. The waste generated during the manufacturing process is not considered manufactured goods under Section 2(d) of the Central Excise Act, 1944.
2. Delton Cables is not required to reverse 10% of the value of exempted goods or pay duty on waste and scrap cleared by the appellant.

Precedent and Implications

The decision follows precedent set in the company's own earlier cases. This ruling reinforces the stance that waste and scrap generated during the manufacturing process of wire and cables are not subject to central excise duty.

Company's Response

Delton Cables Limited promptly informed the Bombay Stock Exchange (BSE) about this development, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company's disclosure included details of the CESTAT order and its implications.

Financial Impact

While the exact financial impact of this ruling is not specified, the decision is expected to have a positive effect on the company's finances by eliminating the potential liability of Rs. 4,97,113 in central excise duty, along with associated interest and penalties.

This legal victory for Delton Cables Limited underscores the importance of proper classification of manufacturing byproducts and waste in the context of excise duty regulations. It also highlights the significance of precedent in tax-related legal matters, particularly in the manufacturing sector.

As the company moves forward, this favorable ruling is likely to strengthen its position in any similar disputes and provide clarity on the tax treatment of manufacturing waste and scrap in the wire and cable industry.