Revenue and Profit Growth
Delton Cables’ net sales have surged impressively, rising from ₹72.02 crores in March 2019 to ₹709.26 crores by March 2025. This nearly tenfold increase over six years underscores the company’s expanding market presence and operational scale. Correspondingly, total operating income mirrored this growth, reflecting consistent business expansion without reliance on other operating income streams, which remained nil throughout the period.
Operating profit before depreciation, interest, and tax (PBDIT) excluding other income also showed a strong upward trend, climbing from a modest ₹0.44 crores in 2019 to ₹46.74 crores in 2025. Including other income, operating profit reached ₹48.40 crores in the latest fiscal year. Despite rising raw material and other expenses, the company maintained a stable operating profit margin around 6.5% to 7.8% in recent years, a slight moderation from the peak margin of 9.6% in 2020.
Profit after tax (PAT) recovered significantly from a loss of ₹64.11 crores in 2019 to a positive ₹20.51 crores in 2025, reflecting improved operational efficiency and cost management. The PAT margin, while modest at 2.89% in 2025, marks a substantial turnaround from the negative margins seen in earlier years. Earnings per share (EPS) followed a similar pattern, rising from a negative ₹74.2 in 2019 to ₹23.74 in 2025, indicating enhanced shareholder value.
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Asset and Liability Structure
The company’s total assets expanded from ₹114.06 crores in 2020 to ₹419.10 crores in 2025, driven by growth in both fixed assets and current assets. Net block of fixed assets increased significantly, reflecting capital investments, while current assets such as inventories and sundry debtors also rose sharply, consistent with higher sales volumes.
Shareholders’ funds grew steadily from ₹54.62 crores in 2020 to ₹90.45 crores in 2025, supported by accumulated reserves. Book value per share improved from ₹63.22 to ₹104.69 over the same period, signalling strengthening equity base.
However, the company’s total debt also increased, reaching ₹171.39 crores in 2025 from ₹46.22 crores in 2020. Both short-term and long-term borrowings rose, reflecting financing needs for expansion. Trade payables and other current liabilities similarly increased, indicating higher operational scale but also greater working capital requirements.
Cash Flow and Working Capital
Cash flow from operating activities has been volatile, with negative cash flows in recent years, including a ₹14 crores outflow in 2025. This was largely due to significant increases in working capital, with changes in working capital amounting to a negative ₹60 crores in 2025. Investing activities showed mixed trends, with outflows in 2025 reflecting capital expenditure, while financing activities provided positive cash inflows, supporting liquidity.
Despite these pressures, the company managed to maintain a positive net cash inflow of ₹3 crores in 2025, with closing cash and cash equivalents rising to ₹12 crores. This suggests prudent cash management amid growth challenges.
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Summary and Outlook
Delton Cables’ historical performance reveals a company that has successfully scaled its operations and improved profitability after overcoming significant losses in 2019. The robust increase in sales and operating profits highlights effective market penetration and cost control. However, rising debt levels and working capital demands pose challenges that require careful financial management going forward.
Investors should note the steady improvement in earnings per share and book value, which reflect growing shareholder wealth. The company’s ability to generate positive cash flow despite expansion-related pressures will be critical to sustaining this growth trajectory. Overall, Delton Cables presents a compelling case of turnaround and expansion within the electrical equipment sector, with cautious optimism warranted for its future prospects.
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