₹552-crore issue opens amid strong digital-infrastructure tailwinds; brokerages highlight Orient Cables’ market position, customer relationships and expansion plans, while flagging raw-material volatility, customer concentration and working-capital risks

Orient Cables India has entered the primary market with its ₹552-crore initial public offering (IPO), giving investors an opportunity to participate in a company positioned around India's expanding digital connectivity and infrastructure ecosystem.

The IPO opened for subscription on September 25, 2026, and will remain open until September 29. The company has fixed the price band at ₹258–₹272 per share. The issue comprises a fresh issue of ₹320 crore and an offer for sale (OFS) of ₹232 crore. The shares are expected to list on the stock exchanges on October 5.

The company operates in networking cables, optical fibre, specialty power cables and related connectivity products, with exposure to sectors such as telecom, broadband, data centres, renewable energy, smart buildings, security and surveillance, automotive, railways and defence.

Brokerages Bajaj Broking and SBI Securities have assigned a 'Subscribe' view to the issue, citing Orient Cables' market position, customer relationships, product diversification and the long-term opportunity created by India's digital infrastructure expansion.

Orient Cables Positioned Around India’s Digital Infrastructure Expansion

India's rapid growth in broadband connectivity, data consumption, 5G deployment, cloud computing and data-centre infrastructure is increasing demand for networking and communication equipment.

Orient Cables operates across this ecosystem through its networking and communication cable portfolio, optical fibre products, specialty power cables and other allied electrical products.

The company also serves newer areas such as renewable energy, electric-vehicle-related applications and smart-building infrastructure.

Bajaj Broking highlighted the company's exposure to multiple end markets and its ability to participate in several infrastructure and connectivity trends simultaneously.

The brokerage noted that data-centre expansion, 5G fibreisation and rising broadband consumption could provide structural demand support for networking and optical-fibre products.

22.9% Market Share in Networking Cables

One of the key factors highlighted by the brokerages is Orient Cables' position within the organised networking-cable market.

According to the company information cited by Business Standard, Orient Cables held a 22.9% market share in networking cables in FY26, placing it among the leading organised players in the segment.

Its manufacturing capabilities, testing infrastructure, certifications and diversified product portfolio have allowed the company to expand beyond conventional networking cables into specialty and technology-oriented products.

This diversification could help reduce dependence on any single end market over the longer term, although the actual benefit will depend on the pace at which newer businesses scale.

Strong Customer Relationships Add Visibility

SBI Securities has highlighted Orient Cables' long-standing relationships with customers across telecom, broadband, data centres and networking solutions.

The company supplies products to two of India's top three telecom companies, while retained customers among its top 50 clients contributed approximately 93.9% of FY26 revenue, according to the brokerage's assessment.

High repeat business can provide revenue visibility and reduce the need to continuously rebuild the customer base.

However, the same characteristic also creates a potential concentration risk. A large contribution from a relatively concentrated group of customers means that changes in procurement strategy, pricing or order volumes from major customers could affect revenue growth.

Financial Performance Shows Strong Revenue Growth

Orient Cables recorded substantial revenue growth in FY26.

Revenue increased to around ₹1,171.6 crore in FY26 from ₹825 crore in FY25, representing growth of approximately 42%.

However, profit growth was considerably slower. Profit for FY26 stood at around ₹53.6 crore compared with ₹53.3 crore in the previous year.

This divergence between revenue and profit growth is an important factor for investors because it indicates that higher sales have not translated into equivalent bottom-line expansion.

EBITDA increased to approximately ₹96.4 crore from ₹83.8 crore, but the EBITDA margin declined to around 8.22% from 10.16%.

The latest quarter ended June 2026 reported revenue of approximately ₹489.1 crore and profit of ₹32.7 crore.

IPO Structure and Use of Proceeds

The ₹552-crore IPO consists of:

• Fresh issue: ₹320 crore

• Offer for sale: ₹232 crore

• Price band: ₹258–₹272 per share

• IPO opening: September 25, 2026

• IPO closing: September 29, 2026

• Expected allotment: September 30, 2026

• Expected listing: October 5, 2026

• Lot size: 55 shares

At the upper end of the price band, a retail investor would need approximately ₹14,960 for one lot.

The fresh issue proceeds are intended to be used partly for capital expenditure and partly for debt reduction.

Around ₹91.5 crore is earmarked for machinery, equipment and civil works at manufacturing facilities, while approximately ₹155.5 crore is proposed to be used for repayment or partial prepayment of borrowings.

The remaining funds will be used for general corporate purposes.

Debt Reduction Could Strengthen the Balance Sheet

Debt reduction is one of the notable components of the IPO.

Orient Cables had total outstanding borrowings of approximately ₹258.4 crore as of June 2026, according to Moneycontrol.

Using ₹155.5 crore from the fresh issue for debt repayment could reduce interest costs and strengthen the balance sheet.

For a manufacturing company operating in a business where working-capital requirements can be significant, lower leverage could also provide greater financial flexibility for future expansion.

However, the benefits will depend on the company's ability to maintain margins and generate sufficient operating cash flow as its business expands.

Capacity Expansion to Support Future Growth

Orient Cables currently has significant manufacturing capacity across its cable and related product portfolio.

The company plans to invest in machinery, equipment and civil infrastructure through a portion of the IPO proceeds.

Capacity expansion is particularly relevant as demand for fibre connectivity, networking infrastructure, data centres and electrical products grows.

If the company can increase capacity utilisation while maintaining margins, the investment could support higher revenue and operating profitability.

The challenge, however, will be to ensure that additional capacity translates into profitable demand rather than simply increasing fixed costs.

Anchor Investors Provide Early Institutional Participation

Ahead of the public issue, Orient Cables raised approximately ₹165.6 crore from 14 anchor investors at ₹272 per share, the upper end of the IPO price band.

The anchor book included several domestic mutual funds and institutional investors.

According to Moneycontrol, eight domestic mutual funds collectively received a significant allocation, while insurance companies and other institutional investors also participated.

Anchor participation can provide an early indication of institutional interest in an IPO, although it does not guarantee future stock performance.

Brokerages Highlight Multiple Growth Drivers

Bajaj Broking has pointed to Orient Cables' diversified exposure to broadband, telecom, data centres, renewable energy, smart buildings, security and surveillance, FMEG and automotive applications.

The brokerage believes the company's market position and exposure to India's digital transformation provide a potential long-term growth opportunity.

SBI Securities has similarly highlighted the company's customer relationships and expansion into optical fibre, E-beam irradiated cables, solar products and EV-related assemblies.

The proposed capacity expansion, partnerships and debt reduction were also identified as potential growth drivers.

Raw-Material Prices Remain a Key Risk

Cable manufacturing is sensitive to raw-material prices, particularly metals and other inputs.

Volatility in raw-material costs can affect gross margins if companies are unable to pass higher costs to customers quickly.

SBI Securities has identified raw-material volatility as one of the major risks associated with the company.

This becomes particularly important in a competitive market where large customers may have stronger negotiating power and where pricing adjustments may take time.

Customer Concentration Needs Monitoring

While long-term relationships with major customers provide revenue visibility, customer concentration remains an important risk.

If a significant portion of revenue comes from a limited number of large customers, the loss or reduction of orders from even one major account can affect growth.

Investors therefore need to track whether Orient Cables can broaden its customer base while maintaining its existing relationships.

Working Capital Could Rise With Growth

Rapid revenue growth can increase working-capital requirements for manufacturing companies.

Higher sales can require greater inventory, receivables and supplier financing, particularly when businesses operate with large institutional customers and longer payment cycles.

SBI Securities has specifically flagged increasing working-capital requirements as a concern.

The company's ability to convert accounting profits into operating cash flow will therefore remain an important metric after listing.

Brand-Related Proceedings Remain an Overhang

SBI Securities has also pointed to pending brand-related proceedings involving Orient Electric as an area that investors should monitor.

While this issue may not directly determine the company's operational performance, developments in brand-related legal matters could create uncertainty around the company's branding and business environment.

Investors should therefore track subsequent disclosures and regulatory or legal developments.

Valuation Will Depend on Sustained Margin Performance

The IPO's valuation needs to be considered alongside the company's recent financial performance.

Revenue grew sharply in FY26, but profit remained broadly flat year-on-year and EBITDA margins contracted.

This creates an important question for investors: whether the company can convert its strong revenue opportunity into sustainable earnings growth.

The digital infrastructure opportunity is significant, but revenue growth alone may not be sufficient if raw-material costs, working-capital requirements or competitive pricing pressure continue to constrain margins.

Key IPO Details

Market Outlook

Orient Cables is entering the market at a time when India's digital infrastructure is expanding across telecom networks, broadband, data centres, fibreisation, smart buildings and connected electrical systems.

The company's market position, diversified product portfolio, repeat customer base and planned capacity expansion are the principal factors highlighted by the brokerages supporting their positive view on the IPO.

At the same time, investors need to weigh these growth opportunities against declining EBITDA margins, raw-material volatility, customer concentration, working-capital requirements and the company's ability to generate stronger profit growth.

The IPO proceeds directed towards capacity expansion and debt reduction could improve the company's operating and financial profile over time, but the eventual outcome will depend on execution and demand.

For investors evaluating the issue, the key parameters to monitor after listing will be revenue growth, EBITDA margins, capacity utilisation, debt reduction, operating cash flow and customer diversification. The long-term investment case will ultimately depend on whether Orient Cables can translate India's digital-infrastructure growth into consistent and profitable earnings expansion.