New Delhi | 10-Oct-2025, 10:00 IST — Filed on 08-Oct-2025, 18:45 IST via NSE/BSE Filing
Cords Cable Industries Ltd (NSE: CORDSCABLE / BSE: 532941) said in a regulatory filing that CareEdge Ratings has reaffirmed its ratings on the company’s bank facilities. The reaffirmation signals stability in the company’s credit profile, backed by a consistent operating record, diversified product line, and experienced promoters.
Facility-wise Ratings
CareEdge reaffirmed ratings across Cords Cable’s sanctioned limits:
- Long-Term Bank Facilities (₹84.10 crore) — CARE BBB; Stable
- Long-Term / Short-Term Bank Facilities (₹167.00 crore) — CARE BBB; Stable / CARE A3
- Short-Term Bank Facilities (₹40.00 crore) — CARE A3
The Stable outlook indicates CareEdge expects the company to maintain its performance metrics in the near-to-medium term.
Rating Rationale
Positives Driving Reaffirmation
- Experienced Promoters: Cords’ promoters have a longstanding presence in the Indian cable industry, supporting credibility and operational continuity.
- Diversified Product Portfolio: The company manufactures a wide range of power, control, instrumentation, and speciality cables, serving clients across infrastructure, oil & gas, and renewables.
- Revenue Growth: FY25 saw steady topline growth, aided by orders from power and renewable energy segments.
- Client Diversification: Cords’ products are approved by large PSUs, EPC players, and private utilities, reducing dependency on a single customer group.
Challenges & Risks
- Working Capital Intensive Operations: High receivables and inventory requirements keep borrowings elevated and put pressure on liquidity.
- Moderate Financial Risk Profile: Despite stability, leverage and coverage indicators remain moderate relative to peers.
- Raw Material Sensitivity: Copper, aluminium, and PVC price volatility continues to affect profitability margins.
- Competitive Market: The cables sector is fragmented with several regional and mid-sized players, limiting pricing power.
CareEdge noted that any sustained improvement in interest coverage, debt profile, and working capital cycle could support a future upgrade. Conversely, larger-than-expected debt or cash flow mismatches could weigh on ratings.
Company Profile
Incorporated: 1991
Headquarters: New Delhi
Manufacturing Units: Chopanki and Kaharani (Rajasthan)
Products: Control cables, power cables, instrumentation cables, speciality cables
Cords Cable caters to power, oil & gas, steel, cement, fertilizers, and industrial segments. The company’s cables are supplied to both domestic and export markets, with approvals from marquee clients such as NTPC, ONGC, Indian Oil, and L&T.
Promoters & Management
The business is promoted by Naveen Sawhney and family, who have decades of experience in cable manufacturing and distribution. The board includes professionals with technical and financial expertise, ensuring compliance and governance.
Financial Performance (FY23–FY25)
- Revenue: From ~₹530 crore in FY23 to ~₹620 crore in FY25, reflecting demand recovery.
- EBITDA Margin: Stable in the 6–8% range, though pressured by input cost volatility.
- Debt: Moderate reliance on bank borrowings to fund working capital.
- Leverage: Gearing at ~1.2x; interest coverage at ~2x in FY25.
Sector Context
The Indian cables and wires industry is closely linked to power transmission, industrial capex, and infrastructure growth. Rising investments in renewables, EV charging, smart grids, and industrial automation are expected to drive long-term demand.
However, the industry remains vulnerable to raw material swings and intense competition, which compress margins. Rating agencies are cautious, generally assigning mid-tier ratings unless companies demonstrate strong liquidity and sustained margins.
Ticker Snapshot — Cords Cable (NSE: CORDSCABLE)
| Metric | Value |
|---|---|
| Price | ₹142.50 |
| Change | +1.75 (+1.24%) |
| 52-Week Range | ₹118.00 – ₹178.90 |
| Promoter Holding | ~52.4% |
Outlook
The reaffirmed ratings reflect stability rather than an upgrade, but they offer comfort to lenders and investors that Cords Cable’s fundamentals remain intact.
Future rating movements will hinge on the company’s ability to:
- Improve interest coverage beyond 2.5x,
- Reduce reliance on short-term borrowings by tightening working capital,
- Sustain double-digit revenue growth, and
- Preserve promoter support for funding needs.
If achieved, Cords Cable could move closer to higher rating brackets. For now, the reaffirmation provides confidence in the company’s resilience amid industry challenges.
