Dynamic Cables' Credit Rating Confirmed, Banking Facilities Rise to ₹350 Crore

Dynamic Cables Limited's total banking facilities have been boosted to ₹350 Crore from ₹295.55 Crore. CRISIL Ratings has reaffirmed the company's credit ratings, keeping its long-term rating at CRISIL A/Stable and short-term rating at CRISIL A1.

Reader Takeaway: Credit profile strengthens with expanded credit lines; industry competition remains a key pressure point.

Key Announcement Details

Dynamic Cables Limited announced on March 21, 2026, that CRISIL Ratings Limited has reaffirmed its credit ratings.

This reaffirmation covers both long-term (CRISIL A/Stable) and short-term (CRISIL A1) banking facilities.

Significantly, the total sanctioned banking facilities have been enhanced from ₹295.55 Crore to ₹350 Crore.

Why This Matters

A strong credit rating from CRISIL signals greater financial stability and credibility.

The increase in banking facilities suggests better access to capital for working capital or expansion needs.

This can improve the company's borrowing costs and its ability to secure future funding.

Company Background and Performance

Dynamic Cables is a leading manufacturer of power infrastructure cables, including low, medium, and high voltage variants, alongside railway signalling and solar cables.

The company has demonstrated robust financial growth, with FY25 revenue reaching ₹1,030 Crore, supported by a healthy 1-year revenue CAGR of 34%.

Profitability remains strong, with profit growth of 28.01% over three years and a significant 1-year jump of 71.61%. Its recent Q3 FY26 results showed an 18.8% YoY revenue increase and a 41.9% YoY net profit jump.

Dynamic Cables operates with a lean debt structure, maintaining a low Debt/Equity ratio of approximately 18.85% and strong returns on equity (ROE) and capital employed (ROCE).

The company has been expanding its manufacturing capabilities, with a new plant slated for completion in FY2026, building on previous capacity expansions.

What Changes Now

• Greater Financial Flexibility: The higher borrowing limit offers more room for operational and financial decisions.
• Boosted Investor Confidence: Ratings reaffirmed by a respected agency enhance trust in the company's financial health.
• Growth Potential: Increased capital access supports expansion plans and new projects.
• Cost Savings: A strong credit profile could result in better terms on future loans.

Risks to Watch

• Industry Competition: The cable sector is fragmented with intense price wars and competition from cheaper imports.
• Reliance on Government Business: Dependence on tender-based government contracts creates risks in project allocation and payment delays.
• Past Governance Issues: Despite recent positive ratings, the company faced a ₹10 lakh fine from BSE in FY2022 for non-compliance with board composition rules.
• Input Cost Volatility: Raw material price swings can affect profit margins.

Peer Comparison

Dynamic Cables operates in a competitive landscape alongside giants like Polycab India, India's largest wire and cable manufacturer with a 25-26% market share. KEI Industries is another major player, offering a wide range of cables and EPC solutions, exporting to over 60 countries. Sterlite Power is a key competitor in the broader power transmission infrastructure segment, involved in developing assets and manufacturing cables.

Key Financial Metrics

• FY25 Revenue: ₹1,030 Crore (Standalone/Consolidated: Not Specified)
• FY25 Revenue Growth (1 Year): 34% CAGR (Standalone/Consolidated: Not Specified)
• Debt/Equity Ratio: Approximately 18.85% (as of latest available data, likely FY25) (Standalone/Consolidated: Not Specified)

What to Track Next

• Future CRISIL Reviews: Track upcoming credit rating updates and CRISIL's comments.
• Financial Performance: Monitor revenue and profit growth, particularly following the expanded credit facilities.
• Order Book: Watch for new project wins and order book size, especially for railway signalling and high-voltage cables.
• Capacity Use: Track how the company uses its increased borrowing limits and new plant capacity.
• Industry Trends: Watch demand drivers such as government spending on power infrastructure and renewables.