Orient Cables IPO: 41% GMP, AI/Data Centre Theme and the Real Numbers

Orient Cables IPO: 41% GMP, AI/Data Centre Theme and the Real Numbers

Orient Cables (India) has become one of the most talked-about IPOs of the week because it combines several themes the market currently likes: networking cables, optical fibre, telecom, data centres, digital infrastructure and capacity expansion.

The ₹552 crore mainboard IPO opened on September 25, 2026 and closes on September 29. The price band is ₹258–₹272 per share, the lot size is 55 shares, and the tentative listing date is October 5, 2026.

The grey market added to the excitement. On September 25, the latest observed grey-market quote was around 35% over the ₹272 upper price band. Grey-market quotes can change intraday and differ across trackers.

But GMP is unofficial, unregulated and can change very quickly. It should be treated as a sentiment indicator, not a guaranteed listing return.

GMP note: Grey-market data is not exchange data. Different trackers can show different premiums at the same time, so the article uses the latest observed figure rather than treating GMP as a fixed number.

Orient Cables IPO at a Glance

The issue is therefore not only an exit by existing shareholders. A meaningful part of the money is actually going into the company.

Where Will the Fresh Issue Money Go?

Out of the ₹320 crore Fresh Issue, the company plans to use:

• ₹91.5 crore for machinery, equipment and civil works at manufacturing facilities
• ₹155.5 crore for repayment or prepayment of borrowings
• The remaining amount for general corporate purposes

This is important.

Around ₹247 crore, or roughly three-fourths of the Fresh Issue, is specifically directed toward capacity investment and debt reduction.

The OFS portion of ₹232 crore, on the other hand, goes to existing promoter shareholders selling part of their holdings.

Promoter and promoter-group ownership is expected to remain above 80% after the issue at the upper price band.

What Does Orient Cables Actually Make?

Orient Cables is not simply an optical-fibre company.

Its largest business is Networking Cables and Solutions.

Products include:

• CAT5, CAT5e, CAT6 and CAT6A networking cables
• Patch cords
• CCTV and coaxial cables
• Optical fibre cables
• Fibre patch cords
• Power cables
• Instrumentation and control cables
• Keystone jacks
• Power strips and power cords
• EV charging cables and assemblies
• Cable harness assemblies

The company also has newer products including E-beam irradiated specialty cables, solar junction boxes and tethered drone systems.

As of June 30, 2026, Orient Cables had annualised installed cable capacity of about 895,776 km across its manufacturing facilities.

According to the 1Lattice industry report cited in the offer documents, Orient Cables was among the top four networking cable players in India, with an estimated 22.9% market share in FY26, up from around 16% in FY22.

Is Orient Cables Really an AI and Data Centre Proxy?

Partly — but calling it a pure AI/data-centre company would be misleading.

The theme is genuine because data centres need large amounts of networking infrastructure, high-speed copper cabling, fibre connectivity and related passive equipment.

Orient Cables supplies customers across:

• Broadband
• Telecom
• Data centres
• Smart buildings
• IT and system integration
• Renewable energy
• Automotive and EV infrastructure
• Defence and aerospace

However, the latest FY26 customer-industry mix shows that direct Data Centre customers contributed only about 4.59% of revenue.

The much larger revenue buckets were:

So the company is better understood as a digital connectivity and networking infrastructure supplier rather than a direct AI-data-centre pure play.

That still gives it exposure to the broader AI and data-centre buildout because expanding digital infrastructure requires more networking and fibre equipment. But the current financial numbers do not justify treating the entire business as an AI proxy.

Optical Fibre and Specialty Cables Are Growing Faster

Another interesting change is happening inside the product mix.

Networking Cables and Solutions contributed about 78.23% of FY26 revenue.

But during the three months ended June 30, 2026, that share fell to 68.60%, as Specialty Power and Optical Fibre Cables expanded.

In FY26, specialty power and optical-fibre cable sales grew much faster than the overall business.

This diversification is important because the company is gradually moving beyond traditional LAN and networking cables into higher-value connectivity, power, EV and specialty applications.

Financial Growth Is Strong — But Profit Did Not Keep Pace

Orient Cables has delivered strong revenue growth.

FY26 revenue grew about 42%, but PAT was almost flat.

That is the biggest financial point investors should not ignore.

EBITDA margin fell from around 10.17% in FY25 to 8.23% in FY26, while PAT margin also compressed.

The latest quarter was stronger: Q1 FY27 EBITDA margin improved to around 11.22%, with PAT of about ₹32.8 crore.

That is encouraging, but one quarter should not be blindly annualised.

The key question after listing will be whether the company can maintain the latest margin recovery while continuing to grow revenue.

Customer Concentration Is High

Orient Cables is a B2B company with long-standing customer relationships, but revenue concentration is significant.

The top 10 customers contributed about 76.52% of FY26 revenue.

For the June 2026 quarter, this increased to around 84%.

The largest customer alone contributed 38.54% of revenue in Q1 FY27.

That creates a clear risk.

If one major telecom, broadband or OEM customer reduces purchases, delays orders or negotiates lower prices, Orient Cables can feel the impact quickly.

Working Capital Also Needs Attention

Fast-growing manufacturing companies can show strong revenue while cash remains stuck in inventory and receivables.

Orient Cables' trade receivables reached roughly ₹218 crore in FY26, and external analyses based on the RHP show negative operating cash flow in FY26 despite reported profit.

This does not automatically mean poor business quality, but it makes cash conversion an important post-listing metric.

Investors should watch whether growth begins producing stronger operating cash flow as debt comes down.

Debt Reduction Can Help

As of June 2026, Orient Cables had total outstanding borrowings of about ₹258.4 crore.

The company plans to use ₹155.5 crore of IPO proceeds toward repayment or prepayment of borrowings.

If implemented as planned, this should reduce interest burden and strengthen the balance sheet.

It also explains why a large portion of the Fresh Issue is not going entirely into new factories.

Part of the IPO is effectively a balance-sheet repair exercise.

Valuation Is Not Cheap

At the upper price band of ₹272, Orient Cables is seeking a post-issue market capitalisation of around ₹3,095 crore.

Brokerage calculations place the FY26 P/E around 52–58 times, depending on the EPS basis used.

That is a meaningful valuation for a company whose FY26 profit barely grew despite 42% revenue growth.

The valuation therefore assumes that:

• Revenue growth remains strong
• Margins recover
• Debt falls
• Capacity expansion converts into sales
• Specialty and optical-fibre products scale
• Digital-infrastructure demand stays supportive

If those things happen, the premium can be easier to justify.

If margins remain weak, the valuation leaves less room for disappointment.

What Is Driving the Bullish Buzz?

There are four clear reasons why the market is excited.

1. Digital infrastructure theme

AI, cloud computing, broadband and data-centre investment require physical connectivity.

Cables, fibre, patch cords and passive networking products are the basic infrastructure behind that digital layer.

2. Strong FY26 revenue growth

Revenue rose roughly 42% in FY26.

3. Specialty and optical-fibre expansion

The business mix is becoming more diversified, while the latest quarter shows a larger contribution from specialty power and optical-fibre products.

4. Strong anchor participation

Ahead of the IPO, Orient Cables raised about ₹165.6 crore from anchor investors at ₹272 per share.

The anchor book included mutual funds and institutional investors such as Nippon India, ICICI Prudential, Aditya Birla Sun Life, Motilal Oswal, Invesco, Bandhan, Goldman Sachs and others.

Anchor participation is useful context, but it is still not a guarantee of post-listing performance.

What Is Driving the Around 35% GMP?

The grey-market move appears to be combining:

• Cable-sector interest
• Digital-infrastructure excitement
• Data-centre and AI narrative
• Optical-fibre exposure
• Strong recent revenue growth
• Anchor participation
• Limited pre-listing supply

On September 25, the latest observed GMP was around 35% over the upper price band. Because the grey market is unofficial, quoted premiums can move quickly and differ across trackers.

Other trackers showed different numbers at different times.

That difference itself is a reminder that GMP is not an official exchange price.

The only official price discovery happens when the shares list and trade on the stock exchange.

Day 1 Demand

By around 1 PM on September 25, the IPO had received bids for about 87% of the shares on offer.

The retail portion was around 1.20 times subscribed, while the NII portion was about 1.27 times.

These figures will continue changing until the issue closes, so they should be treated as a timestamp rather than final demand.

The Real Orient Cables Story

The strongest way to understand Orient Cables is not:

“AI company coming to IPO.”

It is:

“A fast-growing networking and specialty cable manufacturer that could benefit from the long-term buildout of broadband, telecom, data centres and digital infrastructure.”

That distinction matters.

The company does have real products that sit underneath these themes.

But direct data-centre revenue is currently only a small part of total sales, customer concentration is high, FY26 margins weakened, cash conversion needs monitoring and the IPO valuation is already demanding.

The theme is attractive.

The business is real.

But investors should separate the infrastructure opportunity from the hype around the word AI.

What to Watch After Listing

The most important numbers will be:

• Revenue growth after FY26
• EBITDA margin
• Q1 FY27 margin recovery sustainability
• Debt after IPO repayment
• Operating cash flow
• Trade receivable growth
• Customer concentration
• Specialty and optical-fibre revenue mix
• Actual data-centre revenue contribution
• Capacity utilisation

If these improve together, the digital-infrastructure story becomes much stronger fundamentally.

If only the narrative grows while cash flow and margins remain weak, the stock may become more dependent on sentiment.

Disclaimer: This article is for informational and educational purposes only. GMP is unofficial and can change rapidly. The AI/data-centre discussion describes the company's end-market exposure and broader industry theme; it is not a prediction of share-price performance or a recommendation to subscribe, buy, sell or hold the IPO.