Delton Cables Reports Mixed FY26 Results, Recommends Dividend

Delton Cables Ltd. announced its financial results for the fiscal year ended March 31, 2026, showing a significant rise in revenue but a notable drop in net profit. The company also proposed a final dividend payout to shareholders.

Revenue Growth Outpaces Profitability

For FY26, Delton Cables achieved revenue from operations of ₹986.38 crore, an increase of over 38% compared to ₹709.26 crore in the previous fiscal year (FY25). Despite this strong top-line performance, the company's net profit after tax declined by approximately 28% to ₹14.72 crore, down from ₹20.51 crore in FY25. Consequently, earnings per share (EPS) fell to ₹17.04 from ₹23.74.

Land Revaluation Boosts Equity

In a significant accounting event, Delton Cables adopted the revaluation model for its freehold land. This adjustment increased the reported value of freehold land from ₹0.0783 crore to ₹240.10 crore. The revaluation resulted in an increase of ₹240.03 crore recognized in Other Comprehensive Income, significantly boosting the company's equity on paper.

Dividend Recommendation

Shareholders are set to benefit from a recommended final dividend of ₹2 per equity share, pending approval at the Annual General Meeting. This represents a 20% payout, offering a direct return to investors amidst the mixed financial results.

Financial Health and Risks

The company's operating cash flow remained negative, with an outflow of ₹5.68 crore in FY26. This, combined with the declining net profit despite revenue growth, suggests potential margin pressures or increased operational costs. Auditors also highlighted a minor regulatory concern regarding an unregistered charge with the ROC for Mercantile Bank Limited, valued at ₹0.30 crore.

Outlook

Investors will be watching Delton Cables' performance closely in the upcoming year, focusing on its ability to improve profit margins and address the negative operating cash flow. The resolution of the pending ROC charge will also be an important factor to track.