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Dynamic Cables Ltd

| Quarterly Financial Results Q3 FY 2025-26

BULLISH SENTIMENT

Report Source

⬤27th Jan 26

Summary : Dynamic Cables Limited reported strong Q3 FY26 financial performance with significant revenue and profit growth, supported by successful capital raising and a bonus issue, while monitoring new labor code impacts.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Total expenses increased to Rs 27,059.17 Lakhs for Q3 FY26 from Rs 23,254.40 Lakhs for Q3 FY25, primarily due to higher material costs.
  2. Revenue from operations increased to Rs 29,876.77 Lakhs for Q3 FY26 from Rs 25,150.19 Lakhs for Q3 FY25.
  3. Total income for Q3 FY26 was Rs 30,064.12 Lakhs, up from Rs 25,357.96 Lakhs in Q3 FY25.
  4. Paid-up equity share capital increased to Rs 4,845.86 Lakhs (Q3 FY26) from Rs 2,422.93 Lakhs (Q3 FY25) due to a 1:1 bonus issue.
  5. Unutilized funds of Rs 1170.54 Lakhs from the preferential issue are invested in Mutual Funds.
  6. Standalone financial results.

Corporate Overview

  1. India (Registered office in Jaipur, Rajasthan).
  2. Monitoring the potential financial impact of new Labour Codes effective November 21, 2025, as rules are yet to be notified.
  3. Operates within a single primary business segment, implied to be cable manufacturing.
  4. Positive and confident, reporting strong financial performance and capital structure improvements.
  5. Utilized Rs 8488.27 Lakhs from a preferential equity issue for issue objectives.

Risk Factors

  1. Uncertain financial impact of new Labour Codes.
  2. Fluctuations in raw material costs.
  3. Competition in the cable manufacturing sector.
  4. Regulatory changes affecting business operations.

Key Drivers

  1. Strong revenue growth quarter-on-quarter.
  2. Significant increase in profit after tax.
  3. Successful capital raise and bonus issue.
  4. Employee stock option plan for motivation.

Auditor’s Report

  1. Unmodified conclusion on the unaudited standalone financial results.

Board Commentary

  1. Potential financial impact from new Labour Codes, with rules yet to be notified.
  2. Compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
  3. Compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015.
  4. Raised Rs 9658.79 Lakhs via preferential issue of equity shares in June 2024.
  5. Issued 24,229,319 fully paid-up Bonus Equity Shares (1:1 ratio) on July 15, 2025, capitalizing Rs 2422.93 Lakhs from Security Premium.

Corporate Governance

  1. Company's Code of Conduct for Prohibition of Insider Trading is in place.
  2. Financial results reviewed by the Audit Committee and approved by the Board of Directors.
  3. Audit Committee and Nomination and Remuneration Committee are active.

Management Discussion & Analysis

Future Strategy

  1. Implemented an Employee Stock Option Plan (ESOP) to incentivize eligible employees.

Operational Focus Areas

  1. Ensuring compliance with new Labour Codes, assessing potential financial impacts.
  2. Managing unutilized capital from preferential issue, currently invested in Mutual Funds.

Performance Drivers

  1. Significant increase in revenue from operations and profit for the period.
  2. Successful preferential issue of equity shares and bonus share issuance.

Risk Control Measures

  1. Management is actively assessing compliance with the new Labour Codes.

Critical Risks

  1. Uncertainty regarding the financial impact of new Labour Codes, as rules are pending notification.