Orient Cables Hits 10% Lower Circuit a Day After Blockbuster IPO Debut

Orient Cables (India) had a spectacular stock market debut on Monday. A day later, the mood changed sharply. 

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Open Account Now

Shares of the cable manufacturer fell as much as 10% on Tuesday, October 6, hitting their lower circuit at ₹363. The fall came just one session after the stock listed at ₹448 on the BSE, a 65% premium over its IPO price of ₹272. 

The stock opened Tuesday’s session at ₹380, compared with its previous close of ₹403.30, before selling pressure pushed it to a fresh all-time low. 

Despite the sharp fall, Orient Cables was still trading around 33% above its IPO price at the lower-circuit level. 

Profit Booking May Have Followed Strong Listing 

The sudden reversal comes after investors saw sizeable gains on the company’s first day on the exchanges. 

Market experts cited by Livemint believe profit booking could be behind Tuesday’s decline, with some investors choosing to lock in gains after the strong listing. 

The fall does not, however, change the fact that investors who received shares at the IPO price were still sitting on gains even after the stock hit its lower circuit. 

Attention is now likely to move away from the listing-day excitement and towards how the company performs as a listed business. 

What Does Orient Cables Do? 

Orient Cables is a business-to-business manufacturer specialising primarily in networking cables and passive networking equipment. 

Its products cater to industries including telecom, broadband, data centres, renewable energy, smart-building automation, automotive, e-mobility and fast-moving electrical goods. 

The company also has an international presence, exporting to markets including the UAE, Qatar, the US, Australia, New Zealand, Nepal, Singapore and the Netherlands. 

Revenue Has Grown, but Profit Growth Slowed in FY26 

Orient Cables has seen its revenue expand over the past three financial years. 

Revenue from operations stood at ₹657.77 crore in FY24 and increased to ₹824.96 crore in FY25. It climbed further to ₹1,171.65 crore in FY26. 

Profit growth has been less consistent. 

The company’s profit increased from ₹40.1 crore in FY24 to ₹53.3 crore in FY25. In FY26, it edged up to ₹53.56 crore despite the much stronger increase in revenue. 

That difference between revenue and profit growth is among the areas investors may watch as the company moves beyond its IPO. 

Business Performance Takes Centre Stage After Listing 

Ravi Singh, Chief Research Officer at Master Capital Services, said the networking and fibre-optic cable industries offer significant growth opportunities, but Orient Cables’ ability to convert that opportunity into sustainable performance will matter. 

Among the factors he identified for investors to track are revenue growth, profitability, execution of expansion plans, working capital and cash flows. 

Order execution, margins and capacity utilisation could also become important markers of how the business performs after listing. 

Orient Cables’ first two sessions have therefore delivered two very different pictures. Monday was dominated by a 65% listing premium. Tuesday brought a 10% fall and a lower circuit. 

With the initial IPO excitement beginning to settle, the company’s quarterly performance and its ability to translate rising revenue into stronger profitability could increasingly shape how the stock is viewed from here.