Polycab India Limited

POLYCAB

Sector: Electrical EquipmentSub-sector: Wires and Cables
Qtr Score Rank 13 / 57 (Top 79 percentile)Growth Score Rank 1 / 51 (Top 100 percentile)

Quarterly Score

↔ Trend: Stable
Sentiment stable - Recent avg: 9.23, Historical avg: 9.40

Showing the latest 12 quarterly points (newest to oldest).

Score context (latest 12 quarters)

Q3 FY2025
9.3

The company achieved its Project LEAP guidance of ₹ 200 billion top-line in calendar year 2024, ahead of the FY26 timeline, with ₹ 210 billion. It launched 'Project Spring,' a new 5-year guidance till FY30, targeting Wires and Cables business growth at ~1.5x the market growth with 11-13% sustainable EBITDA margins, FMEG growth at 1.5x-2x market growth aiming for 8-10% EBITDA margins by FY30, and increasing international business contribution to north of 10% of overall revenue. Capex of ₹ 60-80 billion is planned over the next 5 years, with FY25 capex guidance of ₹ 10-12 billion maintained (9M FY25 capex at ₹ 8.3 billion). A rebound in wires sales is anticipated in Q4 FY25 due to normalized channel inventory and an inflationary copper trend.

Quarter summary

  • Polycab overachieved its Project LEAP FY26 revenue target of ₹ 200 billion in calendar year 2024, more than a year ahead of schedule, with a top-line of ₹ 210 billion, demonstrating strong execution.
  • The FMEG business successfully curtailed its losses during Q3 FY25, driven by gross margin expansion and operating leverage, marking a significant turnaround towards profitable growth for this key diversification segment.

Rationale

  • Polycab overachieved its 5-year Project LEAP top-line guidance of ₹ 200 billion by 5% (₹ 210 billion) in calendar year 2024, more than a year ahead of the committed FY26 timeline, demonstrating exceptional execution and strategic foresight.
  • Reported robust Q3 FY25 consolidated revenue growth of 20% YoY and EBITDA growth of 26% YoY, outpacing revenue growth and leading to a significant 70 bps YoY and 230 bps QoQ expansion in EBITDA margin to 13.8%.
Q4 FY2025
9.5

FY25 capex of ₹9.6 billion was aligned with guidance. Project Spring targets include a capex roadmap of ₹60-₹80 billion over five years, FMEG EBITDA margins of 8%-10% by FY30 with 1.5x-2x industry growth, Wires & Cables EBITDA margins of 11%-13% in the near to mid-term, and a dividend payout ratio target of 30% by FY30 (current 26.3%). EPC sustainable operating margin is expected in high single digits over the medium to long-term. International business is anticipated to see strong growth going forward, despite a temporary Q4 dip, supported by a healthy order book.

Quarter summary

  • Polycab India Limited achieved the significant milestone of becoming the largest company in the electrical industry by revenue for FY25, while also retaining its title as the most profitable for the third consecutive year.
  • The FMEG business successfully turned profitable in Q4 FY25, a major inflection point validating sustained strategic investments in talent acquisition, product development, and brand building.

Rationale

  • Achieved record-breaking Q4 and FY25 consolidated revenue of ₹220 billion (+24% YoY), making Polycab the largest electrical company by revenue.
  • Delivered highest-ever quarterly PAT of ₹7.3 billion (+33% YoY) and full-year PAT crossing ₹20 billion (+13% YoY), maintaining position as the most profitable company for the third consecutive year.
Q1 FY2026
9.3

Management maintained Project Spring long-term capex guidance of ₹12-16 billion annually through FY30. Long-term Wires and Cables EBITDA margin guidance of 11%-13% is maintained. FMEG business targets 1.5 to 2x industry growth and improving EBITDA margins to 8%-10% range by FY30. EPC open order book is robust at ~₹150 billion.

Quarter summary

  • Polycab reported its highest-ever Q1 revenue and profitability, demonstrating strong underlying business momentum and resilience.
  • The FMEG business successfully achieved its second consecutive profitable quarter, validating the effectiveness of its strategic initiatives, particularly premiumization and portfolio shifts.

Rationale

  • Consolidated revenue grew strongly by 26% YoY, driven by robust Wires & Cables business (31% YoY), marking the highest-ever Q1 revenue in the company's history.
  • EBITDA significantly outpaced revenue growth at 47% YoY, expanding margins by 210 bps to 14.5%. PAT grew 49% YoY to ~₹6 billion, with margins improving 170 bps to 10.2%, also a Q1 record.
Q2 FY2026
9.2

The company did not provide specific quarterly or annual revenue/profit guidance. However, it expects strong H2 FY26 performance in EPC (from RDSS and BharatNet projects starting Q3) and Wires & Cables (post-monsoon execution pick-up). It reiterated its Project Spring long-term strategic guidance to FY2030, including annual capex of ₹12-₹16 billion, Wires & Cables growth at 1.5x-2x industry rate, FMEG growth at 1.5x-2x market rate towards 8-10% EBITDA target, and >10% export contribution. The 5-year EBITDA margin guidance of 11-13% was maintained, but management noted current performance (15.8% in Q2) could continue at the higher end or better due to good traction and utilization.

Quarter summary

  • Polycab India Limited recorded its highest ever second quarter and half-yearly revenues and profitability, demonstrating strong execution and demand across key segments.
  • The core Wires & Cables segment continued its robust performance, driven by domestic market share gains and significant volume expansion, while the FMEG business achieved sustained profitability.

Rationale

  • Consolidated revenue grew a strong 18% YoY in Q2 FY26 and 21% YoY in H1 FY26, achieving the highest ever second quarter and half-yearly revenue for the company.
  • EBITDA for the quarter grew by 62% YoY, significantly outpacing revenue growth, leading to a substantial ~430 bps YoY and ~130 bps QoQ improvement in EBITDA margin, which stood at 15.8%. PAT reached a record ~₹7.0 billion for Q2, reflecting 56% YoY growth, with margins improving by ~260 bps YoY to 10.7%.
Q3 FY2026Latest
9.2

Qualitative guidance indicates continued strong demand from government and private capex, a robust real estate sector, and sustained FMEG outperformance, with Q4 expected to be 'another good quarter'. FMEG is on track for 'Project Spring' targets of 1.5x-2x industry growth and 8-10% EBITDA margins by FY30. EPC expects annual sustainable operating margins in the high single digits over mid-to-long term. No specific numerical revenue/profitability guidance was provided for the upcoming quarter or full fiscal year.

Quarter summary

  • The company made a strategic decision to absorb some commodity cost inflation in the near term to protect volumes, gain market share, and strengthen channel partner relationships.
  • Continued strong execution under 'Project Spring' is driving domestic market share gains and outperformance across both the W&C and FMEG segments.

Rationale

  • Consolidated revenues grew an exceptional 46% YoY in Q3 FY26, with 9M FY26 revenues crossing ₹200 billion (30% YoY growth), marking the highest ever for any 9-month period, demonstrating robust top-line momentum.
  • Domestic Wires & Cables (W&C) business delivered an outstanding 59% YoY revenue growth, driven by approximately 40% volume growth, indicating significant market share gains and strong underlying demand.

Future Growth Prospects

Growth score: 9.3Visibility: 80%Updated: 25 Feb 2026, 09:45 am

Catalysts (next 12-24 months)

Total triggers: 4Visible per view: 1 / 2 / 3Slides: 4

Swipe or use arrows to browse all triggers.

othernext 12-24 monthsImpact: revenueQty: 40 %

Strong W&C Domestic Demand

Timeline

  • in progressQ3 FY26 · concall

    domestic W&C business recorded an exceptional 59% YoY growth

  • in progressQ3 FY26 · concall

    government capex surged nearly 28.2% YoY in the first 8 months of FY26

    Higher than prior periods

Supporting evidence

• Q3 FY26 · concall · For both domestic cables and wires, our volume growth is about 40%.

Show evidence (2)

• Q3 FY26 · concall · The domestic W&C business recorded an exceptional 59% YoY growth, supported by robust demand conditions.

productnext 6-12 monthsImpact: revenueQty: 2 x

FMEG Solar Business Expansion

Timeline

  • scaledQ3 FY26 · concall

    solar business has been a standout performer, growing more than 2x

    Stronger growth than other FMEG categories

  • unknownQ4 FY26 · concall

    We expect even Q4 to be very strong [for solar]

Supporting evidence

• Q3 FY26 · concall · solar business has been a standout performer, growing more than 2x compared to the same quarter last year

Show evidence (2)

• next couple of years · concall · solar, which is already the largest contributor for us on the FMEG segment, will continue to grow even faster in the coming couple of years

orderbooknext 3 yearsImpact: revenueQty: 4500 ₹ Cr

EPC Order Book Execution (BharatNet)

Timeline

  • in progressQ3 FY26 · concall

    commenced execution of our existing orders under BharatNet scheme

  • unknownNext 3 years · concall

    BharatNet scheme, which is expected to generate 4.5 billion over the next 3 years for project execution

Supporting evidence

• next 3 years · concall · commenced execution of our existing orders under BharatNet scheme, which is expected to generate 4.5 billion over the next 3 years

Show evidence (2)

• Q3 FY26 · concall · EPC revenues grew by 4% YoY... Segment profitability stood at ₹272 million, translating to a margin of 6.7%

capacityFY28EImpact: revenue

EHV Plant Commissioning for Sales

Timeline

  • unknownend of next calendar year (FY27) · concall

    EHV plant ... expecting that plant to get commissioned

    On track per timeline

  • unknownFY28E · concall

    start seeing benefit from the EHV sales only in FY 2028

Supporting evidence

• end of next calendar year (FY27) · concall · EHV plant continues as per the timeline. We are expecting that plant to get commissioned by the end of next calendar year.

Show evidence (2)

• FY28E · concall · perhaps we'll be able to start seeing benefit from the EHV sales only in FY 2028.

Variant perception

Non-consensus view
Consensus

The company consistently outperforms the industry, suggesting that its internal strategies and execution capabilities might be underappreciated by consensus.

Upside
  • Faster-than-expected normalization of working capital cycle to 50-55 days improving FCF.
Show more (1)
  • Strategic decision to defer price hikes protects volumes and allows market share gains, which may translate to higher long-term profitability.
Downside
  • Dependency on continued government capex could be a risk if fiscal priorities shift significantly.
Show more (1)
  • Maintaining profitability targets (8-10% FMEG, 11-13% W&C) could be challenged by sustained commodity inflation and higher A&P spends.
base case70% conf
Growth: 20

Quick takeaway

Strong domestic demand from infra and real estate

Risk watch: Commodity price volatility impacting margins

Show details (2 drivers, 2 risks)

Drivers

  • Strong domestic demand from infra and real estate
  • Strategic execution under Project Spring

Risks

  • Commodity price volatility impacting margins
  • Increased competition from new entrants
upside case30% conf
Growth: 25

Quick takeaway

Faster-than-expected commodity price pass-through

Risk watch: Global economic slowdown impacting exports

Show details (2 drivers, 2 risks)

Drivers

  • Faster-than-expected commodity price pass-through
  • Stronger growth in high-margin FMEG solar products

Risks

  • Global economic slowdown impacting exports
  • Persistent high A&P spends to drive brand
downside case20% conf
Growth: 15

Quick takeaway

Prolonged US tariff resolution

Risk watch: Failure to normalize working capital cycle

Show details (2 drivers, 2 risks)

Drivers

  • Prolonged US tariff resolution
  • Intensified price competition in wires and cables

Risks

  • Failure to normalize working capital cycle
  • Cost inflation not fully passed on

Story of the Stock - Top Strategies

No strategy data available

Business Segments

Community

Share your view anonymously. Comments are public and sorted newest first.

Anonymous post · 1500 characters left

Loading comments...