Orient Cables (India) Limited, a Delhi-headquartered manufacturer of networking cables and passive networking equipment, has filed its Draft Red Herring Prospectus for a combined issue size of ₹552 crore. The company, which holds an approximate 22.9% market share in India's networking cables industry as of Fiscal 2026, is seeking to raise funds through a fresh issue of ₹320 crore and an offer for sale by promoter selling shareholders worth ₹232 crore.

About the Company

Incorporated in 2005, Orient Cables operates manufacturing facilities in Bhiwadi, Rajasthan, and Bengaluru, Karnataka. The company specializes in networking cables, which contributed between 68.60% and 87.89% of its revenue across recent fiscal periods, alongside specialty power and optical fibre cables, EV charging assemblies, and allied products. As of June 30, 2026, the company had an installed cable manufacturing capacity of 895,776 kilometers. Orient Cables serves two of the top three telecom companies in India by revenue and maintains an average customer relationship tenure of over nine years with its top-10 clients. In Fiscal 2026, 93.92% of revenue from operations was derived from retained top-50 customers.

Financial Performance

The company has demonstrated significant top-line growth, with revenue from operations rising from ₹657.77 crore in Fiscal 2024 to ₹1,171.65 crore in Fiscal 2026. This represents a compound annual growth rate of approximately 33.45%. However, profitability trends show margin compression, with the Profit After Tax (PAT) margin declining from 6.46% in Fiscal 2025 to 4.57% in Fiscal 2026 despite revenue growth. Return on Net Worth (RoNW) also declined from 37.26% in Fiscal 2024 to 25.84% in Fiscal 2026.

A notable financial trend is the shift in operating cash flows. While Fiscal 2024 recorded positive operating cash flow of ₹42.18 crore, subsequent periods including Fiscal 2025, Fiscal 2026, and Q1 FY2027 reported negative operating cash flows of ₹9.79 crore, ₹26.64 crore, and ₹11.76 crore, respectively.

Why the Company Is Raising Funds

The proceeds from the ₹320 crore fresh issue will be utilized for specific corporate objectives. Approximately ₹155.50 crore is earmarked for the repayment or prepayment of outstanding borrowings, aiming to reduce indebtedness and improve the debt-equity ratio. Another ₹91.50 crore is allocated for capital expenditure related to manufacturing facilities, including the purchase of machinery, equipment, and civil works. The remaining balance will be used for general corporate purposes, subject to regulatory caps on the percentage of gross proceeds.

Business Strengths

Orient Cables identifies itself as one of India's top four players in the networking cables industry, benefiting from high entry barriers characterized by stringent quality audits and supplier onboarding processes. The company has achieved backward integration in PVC compounding, copper drawing, FRP, and IGFR manufacturing, which supports cost efficiency and quality control. It is expanding into high-growth verticals such as E-Beam irradiated cables, EV charging assemblies, tethered drone systems, and solar junction boxes. The management team, led by Managing Director Vipul Nagpal who has over 20 years of experience in cable manufacturing, has maintained the highest Return on Equity among peers in Fiscal 2025 and Fiscal 2026.

Key Risks

Material risks disclosed in the DRHP include significant customer concentration, with 84.00% of revenue from operations derived from the top-10 customers in Q1 FY2027. The company also faces raw material supply concentration, with 74.91% of raw materials sourced from the top-10 suppliers during the same period, and no long-term supply contracts are in place. Persistent negative operating cash flows pose a liquidity risk, as the company has relied on financing activities to fund operations in recent periods. Additionally, there is an active trademark dispute with Orient Electric Limited regarding the use of the 'ORIENT' brand in wires and cables, with a civil suit seeking damages and injunctions. Geographic concentration is another factor, as two of the three manufacturing facilities are located in Bhiwadi, Rajasthan.

Important IPO Dates

The IPO subscription window opens on September 25, 2026, and closes on September 29, 2026. Allotment is scheduled for September 30, 2026, with the listing date set for October 5, 2026.

Offer Details

The total issue size is ₹552.00 crore, split into a fresh issue of equity shares worth ₹320.00 crore and an offer for sale by promoter selling shareholders worth ₹232.00 crore. The price band and lot size have not been disclosed in the current data. The company will not receive any proceeds from the offer for sale component.

Bottom Line

Orient Cables presents a growth story anchored by a strong market position and double-digit revenue expansion, supported by strategic backward integration and diversification into emerging sectors like EV and renewable energy. However, the filing highlights challenges regarding negative operating cash flows, high customer and supplier concentration, and a pending trademark dispute. The allocation of nearly half the fresh issue proceeds toward debt repayment indicates a focus on strengthening the balance sheet amidst these operational pressures.