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Polycab India stock gains 2% post Q1 results: Here's what brokerages say
At 10:25 AM, Polycab India was trading 2 per cent higher at ₹7,024 on the NSE. In comparison, the NSE Nifty50 index was down 0.57 per cent at 24,964.35 levels. The company's total market capitalisation stood at ₹1.05 trillion.
Polycab India Q1FY26 result update
The company's revenue from operations for the June 2025 quarter came in at ₹5,906 crore, up 26 per cent year-on-year (Y-o-Y) from ₹4,698 crore in the year-ago period. Its earnings before interest, tax, depreciation and amortisation (Ebitda) stood at ₹857.6 crore, up 47 per cent Y-o-Y.
Polycab India reported a 49 per cent Y-o-Y increase in profit after tax (PAT) to ₹599.7 crore against ₹401.6 crore in the June 2024 quarter.
The company wires & cables (W&C) business witnessed a 31 per cent Y-o-Y growth for the quarter on the back of sustained demand across sectors, along with higher government expenditure, better project execution and rising commodity prices. The domestic business grew by 32 per cent Y-o-Y.
Polycab India's Ebitda margins improved 210 bps Y-o-Y to 14.5 per cent, supported by strategic pricing revisions, improved operational efficiency, and a favourable business mix.
Brokerage views of Polycab India: Nuvama Institutional Equities
Polycab India's consolidated revenues grew by 26 per cent Y-o-Y (6-year CAGR 20 per cent), beating consensus
estimates by 2 per cent/5 per cent, respectively. Growth was on the back of robust performance in W&C business, supported by healthy growth momentum in FMEG, Nuvama said in a note.
The brokerage has maintained a 'Buy' rating on the stock with a target price (TP) of ₹7,950. It expected other cable and wire companies to post strong earnings for Q1, partially aided by a low base.
JM Financial
According to analysts, Polycab India's Q1 performance was a beat on all fronts. While 33 per cent Y-o-Y growth in the C&W business was a key highlight, the FMEG portfolio also reported steady growth and improved profitability. The C&W business benefited from increased government expenditure and rising commodity prices, while the FMEG business maintained its growth momentum owing to demand from real estate, the brokerage said in a note.
Another key highlight was the ramp-up in the high-margin export business, which grew 24 per cent YoY. "While Q1 was a very strong quarter for Polycab, we await more clarity on the sustainability of this performance and the way forward," it added.
JM Financial has maintained a 'Buy' with a target price of ₹7,900 set at 42x June 27E EPS.
About Polycab India
Polycab India is India's largest manufacturer of wires and cables, with a consolidated turnover of more than ₹224 billion in the fiscal year 2024-25. It has a distribution network of over 4,300 authorised dealers and 200,000 retail outlets. The company operates 27 manufacturing facilities, 15 offices and 34 warehouses across India. It serves customers in more than 84 countries globally.
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