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.

Delton Cables Limited , a leading manufacturer of low-voltage cables and wires, has reported a robust performance for the first quarter of fiscal year 2026, along with significant corporate announcements.

Financial Performance

The company's revenue from operations for Q1 FY26 stood at Rs 156.33 crore, marking a 9% increase from Rs 143.48 crore in the same quarter last year. The net profit saw a marginal rise to Rs 3.08 crore, compared to Rs 3.02 crore in Q1 FY25.

Delton Cables demonstrated improved profitability, with EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) growing by 38% year-on-year to Rs 13.7 crore. The EBITDA margin expanded by 184 basis points to 8.74% in Q1 FY26, up from 6.9% in the corresponding quarter of the previous year.

Segment-wise Performance

The company's revenue breakdown for Q1 FY26 was as follows:

The improved business mix, favoring the higher-margin EPC segment, contributed to the enhanced profitability.

Order Book and Expansion

As of June 30, 2025, Delton Cables' order book stood at Rs 309 crore, with 81% comprising orders from the EPC and telecom segments. The company has also expanded its manufacturing capabilities, with a new facility (Plant-III) becoming operational from June 7, 2025, at Prithla, Haryana, to cater to the growing demand in the telecom sector.

Leadership Changes

The Board of Directors announced key leadership changes:

1. Mr. Shashi Kumar Sharma has resigned as Whole-Time Director, effective August 5, 2025, citing personal reasons.
2. Mr. Ankit Arora has been appointed as Additional Director and Whole-Time Director for a 5-year term, starting August 6, 2025, subject to shareholder approval.

Corporate Governance and Compliance

The company has made several appointments to strengthen its corporate governance:

1. M/s MM & Associates reappointed as Cost Auditors for FY 2025-26.
2. Ms. Malavika Bansal appointed as Secretarial Auditors for a five-year term beginning FY 2025-26.

Annual General Meeting and Dividend

Delton Cables has scheduled its 60th Annual General Meeting for September 26, 2025, to be held via video conferencing. The company has set September 19, 2025, as the record date for determining shareholder eligibility for the final dividend, if declared at the AGM.

Outlook

Vivek Gupta, Managing Director of Delton Cables, commented on the results, stating, "We at Delton Cables are expecting the current fiscal to be a significant one in terms of our future aspirations. The first quarter performance was quite steady, and the improvement in EBITDA margin was a result of our ongoing efforts to bring improvement on that front through optimising business mix, by improving internal efficiencies, and smarter procurements."

He further added, "While Delton has been swift in responding to the sector demands by setting up asset-light manufacturing, and enhancing product portfolio, our focus for FY26 is going to be profitable growth with better ROCE."

As Delton Cables continues to strengthen its position in the low-voltage cable market, investors and stakeholders will be watching closely to see how these strategic moves and leadership changes translate into long-term growth and profitability.