Orient Cables will launch its ₹552 crore IPO on September 25, with funds aimed at debt repayment and manufacturing expansion. While the company has shown strong revenue growth, investors will likely focus on whether it can improve profit margins, which have recently faced pressure despite rising sales.
Orient Cables plans to launch its initial public offering on September 25, seeking to raise ₹552 crore from the market. The bidding period for the issue will conclude on September 29, with the anchor investor segment opening earlier on September 24. The IPO structure includes a fresh share issuance of ₹320 crore and an offer for sale by existing promoters worth ₹232 crore. Shares are expected to list on the stock exchanges on October 5.
IPO Proceeds and Debt Reduction
A primary goal for the fresh proceeds is debt reduction. The company has allocated ₹155.5 crore to pay down its existing debt, which currently stands at ₹258.4 crore. Reducing these borrowings is intended to lower finance costs. An additional ₹91.5 crore is set aside for expanding manufacturing infrastructure at its facilities in Bhiwadi, Rajasthan. The company operates with a cable capacity of 8.95 lakh kilometres, producing a range of items including specialty power cables, optical fibre, and wire harness assemblies for sectors such as telecom, data centres, renewable energy, and automotive.
Financial Performance Trends
During the 2026 financial year, Orient Cables reported revenue of ₹1,171.6 crore, marking a 42% growth from the previous year. However, this revenue expansion did not result in a proportional increase in net profit, which grew by only 0.5% to ₹53.6 crore. This discrepancy highlights a squeeze in operating margins. The company’s EBITDA margin fell to 8.22% in FY26, down from 10.16% in the prior year, suggesting that the costs of generating that revenue have risen faster than the income earned. In the first quarter of the 2026 financial year, the company reported revenue of ₹489.1 crore and a net profit of ₹32.7 crore.
For investors, the key monitorable will be the company’s ability to improve these margins as it integrates the new capital. While expansion into sectors like data centres and renewable energy provides a path for demand, profitability will depend on the management's ability to control input costs and improve efficiency. Tracking whether the reduction in debt improves the company's financial flexibility, alongside future quarterly margin trends, will be essential for assessing long-term performance.