IPD Group's Data Centre Push Becomes a Major Growth Driver
A business that had barely serviced data centres now sees the segment as 17% of revenue and growing fast, alongside a consistent formula of bolt-on acquisitions and organic growth.
31 Aug 2026 · 3 min read
In short
IPD Group's data centre revenue has grown to 17% of the business, expanding 25-30% annually, a market the company had barely serviced before, now becoming a major growth driver.
The company's Platinum Cables and electrical cable supplier acquisitions delivered around a 20% return on funds, offsetting the underperformance of its earlier CMI acquisition.
FY26 EBIT guidance of $46.3-47.1 million implies 19% midpoint growth, with QVG Capital arguing IPD Group retains the same formula of accelerating organic growth and successful M&A that has delivered its historical returns.
IPD Group, a national distributor of electrical hardware components and equipment supplying overseas manufacturers into the Australian market, delivered accelerating organic growth and successful bolt-on acquisitions including Platinum Cables and an electrical cable supplier at a roughly 20 percent return on funds, with data centre revenue now 17 percent of the business and growing 25 to 30 percent, offsetting a disappointing earlier CMI acquisition.
A bolt-on acquisition offsetting a disappointing prior deal
QVG Capital said the acquisition of an electrical cable supplier was right in IPD Group's wheelhouse, at around a 20 percent return on funds, going some way to offset the disappointment of slowing commercial construction revenues and the underperformance of its previous acquisition, CMI. Asymmetric Asset Management said IPD Group was currently the fund's largest position, describing a significant national distributor of electrical hardware components that remains a small company with a long runway of growth opportunity ahead, at a market capitalisation of around $450 million, with its recent acquisition of Platinum Cables highlighting the opportunities a smaller company can have to bolt on acquisitive growth.
As for IPG, the acquisition of an electrical cable supplier is right in their wheelhouse. At a ~20% return on funds, it goes someway to offset the disappointment of slowing commercial construction revenues and the underperformance of their previous acquisition CMI.
— QVG Capital, Monthly Report, December 2025
Data centre demand becomes a major growth driver
QVG Capital said IPD Group is benefiting from cost inflation being passed through to the end customer, and it is difficult to ignore the ever-accelerating deployment of capital into data centres, a market both Southern Cross Electrical and IPD Group service. Spheria Asset Management said it added IPD Group, describing a business that provides all the componentry for building out networks, data centres, electrical and plumbing, a strong cash flow business that is attractively valued and well managed. Centennial Asset Management said IPD Group are not electricians, but supply electrical equipment and distribute overseas groups' equipment into the Australian market, noting they had never done much data centre work before, but it is now 17 percent of the business, growing at 25 to 30 percent, and they are ratcheting that up.
They supply electrical equipment and distribute overseas groups' equipment into the Australian market. Guess what? They've never done data center work much. Now it's 17% of the business growing at 25 to 30%. And they are ratcheting that up.
— Centennial Asset Management, Presentation, April 2026
Strong guidance and an unchanged winning formula
Wilson Asset Management said IPD Group recently provided FY26 guidance for EBIT in the range of $46.3 million to $47.1 million, implying 19 percent midpoint growth supported by a partial contribution from the Platinum Cables acquisition and strong data centre demand, where revenue has grown 25 percent. QVG Capital said IPD Group delivered an accelerating organic growth rate alongside successful M&A, arguing the company has the same formula today that has delivered its attractive historical returns: same multiple, same growth, same M&A prospects.
IPD Group also delivered an accelerating organic growth rate alongside successful M&A. IPG has the same formula today that has delivered its attractive historical returns. Same multiple, same growth, same M&A prospects.
— QVG Capital, Monthly Report, August 2026
What fund managers say they are watching next is continued data centre revenue growth toward and beyond 25-30 percent annual rates, delivery of the FY26 EBIT guidance of $46.3 million to $47.1 million, further bolt-on acquisitions following the successful Platinum Cables and electrical cable supplier deals, and whether cost inflation passthrough continues supporting margins.
Questions
How significant has data centre demand become for IPD Group?
Centennial Asset Management notes data centre work, which IPD Group had barely done before, now makes up 17% of the business and is growing 25-30% annually, becoming a major growth driver.
How has IPD Group used bolt-on acquisitions to grow?
IPD Group's Platinum Cables and electrical cable supplier acquisitions delivered around a 20% return on funds, offsetting the underperformance of an earlier acquisition, CMI, and slowing commercial construction revenues.
What is IPD Group's FY26 earnings guidance?
IPD Group provided FY26 EBIT guidance of $46.3 million to $47.1 million, implying 19% midpoint growth supported by the Platinum Cables acquisition and 25% data centre revenue growth.
6 managers, 14 comments, with each manager's latest recorded position.
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