V-MARC India Reports 98.6% Revenue Growth in FY26; Plans Rs 500 Crore Capex to Expand Capacity Fivefold by FY30

V-MARC India Reports 98.6% Revenue Growth in FY26; Plans Rs 500 Crore Capex to Expand Capacity Fivefold by FY30

The Electrical Post 

V-MARC India Limited recorded its strongest-ever financial and operational performance in FY26, marking a significant transformation in its business profile, product portfolio and market presence. The company reported a 98.6% increase in revenue from operations to Rs 1,797.3 crore in FY26, compared with Rs 904.9 crore in FY25. EBITDA increased by 106.8% to Rs 200.8 crore, while profit after tax (PAT) surged 177.2% to Rs 100.1 crore, taking the company past the Rs 100-crore profit milestone for the first time.

According to Vikas Garg, Chairman and Managing Director of V-MARC India Limited, FY26 represents the most significant year in the company's history, reflecting its evolution from a predominantly high-tension cable manufacturer serving state utilities into a diversified cable and wire manufacturer with a stronger presence across retail, industrial, infrastructure and export markets.

Established in 2006 under the leadership of Mr. Garg, V-MARC began its manufacturing journey at SIDCUL, Haridwar. By 2009, the company had expanded its product portfolio to include LT PVC and XLPE cables, strengthening its position in the electrical cable industry. Its public-market journey reached another milestone with the launch of its initial public offering in April 2021. Today, the company has established a distribution network across 25 states and Union Territories, supported by more than 1,200 dealers.

The company's growth trajectory has been particularly strong over the past four years. Since FY22, revenue has compounded at an annual rate of 77.5%, while PAT has grown at 111.5%. However, the defining feature of FY26 was not just the growth in overall financial performance but also the changing contribution of its individual business segments.

The Building Wires and Industrial Cables business emerged as a major growth driver, registering nearly fourfold growth from Rs 182.4 crore in FY25 to Rs 680 crore in FY26. The segment now contributes approximately 38% of the company's revenue. Meanwhile, the HT Cables business grew 82.7% to Rs 846.7 crore, reinforcing its position as an important contributor to the company's overall performance.

V-MARC also made significant progress in diversifying its sales channels. Retail sales (B2C) increased to 36% of standalone revenue, bringing them on par with institutional sales (B2B). Government sales (B2G) contributed approximately 25%. This balanced contribution across retail, institutional, government and industrial markets has reduced the company's dependence on any single customer segment and provided a more diversified foundation for future growth.

The company attributed the strong growth in its Building Wires and Industrial Cables business to product innovation rather than price-led competition. Products such as Ultra Safe 150 and Heat Safe 90, developed through its in-house research and development capabilities, have helped the company strengthen its positioning in the market. These products have been designed with an emphasis on safety, performance and specialised applications, enabling V-MARC to compete beyond conventional pricing considerations.

FY26 also marked the company's entry into international markets, with exports contributing Rs 62.6 crore in their first year. Recognising the long-term opportunity in global cable and wire markets, V-MARC has established a dedicated export team and opened a new office in Mumbai to strengthen its international business operations. The company intends to expand its presence across the United States, Europe and the Middle East and North Africa (MENA) region in the coming years. It also plans to participate in six to ten international cable and wire exhibitions during FY27 to develop new business relationships and explore export opportunities.

On the manufacturing front, V-MARC commissioned another e-beam facility during FY26, increasing its installed capacity by 25.8% to 2.12 lakh kilometres. The company also introduced what it described as India's first e-beam submersible cable in both aluminium and copper variants for agricultural applications. Developed entirely in-house, the product represents an important technological milestone and provides the company with a first-mover advantage in this specialised segment.

Safety continues to be a central element of V-MARC's product development strategy, particularly in building wires. The company highlighted the importance of reducing smoke-related risks during building fires, with its specialised wire range designed to be halogen-free, flame-retardant and lead-free, with temperature resistance of up to 150°C. According to the management, only a limited number of manufacturers in India currently possess the capability to manufacture such specialised wires. The company sees safety-oriented products as an important differentiator, particularly in residential and commercial construction, where electrical wiring is a long-term investment.

Despite the strong growth in revenue and profitability, the company faced considerable input-cost pressure during the year. Copper and aluminium, which together account for a substantial portion of its raw material costs, witnessed price increases of approximately 22% to 27%. Copper prices touched an all-time high of USD 14,527.50 per tonne in January 2026. Consequently, the company's gross margin declined by 168 basis points to 21.4%.

However, V-MARC managed to improve its EBITDA margin despite the increase in raw material costs, reflecting better operating leverage and cost management. Employee costs declined to 3.9% of revenue in FY26 from 4.2% in FY25, while other expenses decreased to 6.4% from 8.1%. The management believes that economies of scale, operational efficiencies and disciplined cost control will remain important in managing future input-cost volatility.

Looking ahead, V-MARC has outlined an ambitious expansion strategy, committing approximately Rs 500 crore towards capital expenditure through FY30. The investment is expected to increase its installed manufacturing capacity beyond 10 lakh kilometres, approximately five times its current capacity. The expansion is intended to support growing demand across its existing product categories, strengthen its manufacturing capabilities and create additional opportunities in domestic and international markets.

For FY27, the company is targeting revenue growth of more than 40%, while aiming to maintain an EBITDA margin of 11% or better. Growth is expected to remain broad-based across all four sales channels, with exports becoming an increasingly important strategic priority.

However, the management remains conscious of the competitive challenges ahead. Capacity additions across the cable and wire industry, including the entry of large business groups from outside the sector, are expected to intensify competition and potentially create pricing pressure. V-MARC intends to address these challenges through product differentiation, specialised manufacturing capabilities, integrated solutions and a strong distribution network rather than competing primarily on price.

The company believes that its investments in research and development, manufacturing infrastructure and distribution provide a competitive advantage that cannot be easily replicated. While competitors may match pricing strategies relatively quickly, developing specialised products, manufacturing capabilities and an extensive dealer network requires sustained investment and time.

V-MARC also intends to maintain financial discipline while executing its expansion programme. With its debt-equity ratio at 0.74 times, the company plans to pursue future growth through carefully managed investments without compromising its financial position.

Concluding his address, Vikas Garg emphasised that FY26 should be viewed not as the destination but as the starting point of the company's next phase of growth. Having established a strong foundation through business diversification, product innovation, manufacturing expansion and a wider distribution network, V-MARC aims to strengthen its position in India's cable and wire industry while building a sustainable international business.
 

Published at : Nov 10, 2026 01:58 PM (IST)

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