This article first appeared on GuruFocus .
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Consolidated Revenue Growth:39% year-on-year.
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EBITDA Growth:32% year-on-year.
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EBITDA Margin:13.8%, improved by approximately 70 basis points sequentially.
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Profit After Tax (PAT):INR 7,967 million, a growth of 33% year-on-year.
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PAT Margin:9.7%.
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Finance Costs:INR 800 million.
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Other Income:INR 1,049 million.
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Net Cash Position:INR 39.9 billion.
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Average Working Capital Cycle:Improved to 15 days.
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Capital Expenditures:INR 3.2 billion.
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Wires and Cables Revenue Growth:39% year-on-year.
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Domestic Wires and Cables Growth:43% year-on-year.
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Wires and Cables EBIT Margin:13.3%.
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FMEG Revenue Growth:71% year-on-year.
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FMEG EBIT Margin:8%.
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EPC Revenue:INR 3,077 million, a decline of 11% year-on-year.
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EPC Profitability:INR 338 million, with a margin of 11%.
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Release Date: July 16, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Polycab India Ltd ( BOM:542652 ) reported a strong 39% year-on-year revenue growth, driven by sustained momentum in both wires and cables and FMEG businesses.
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The company achieved its highest ever quarterly profit after tax of INR7,967 million, representing a 33% year-on-year growth.
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The FMEG segment recorded an impressive 71% year-on-year growth, marking the tenth consecutive quarter of outperforming industry growth rates.
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The company's balance sheet remains strong with a net cash position of INR39.9 billion, and the working capital cycle improved significantly to 15 days.
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Polycab India Ltd ( BOM:542652 ) continues to see significant opportunities across its markets, with a focus on accelerating profitable growth and strengthening its brands.
Negative Points
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The global macroeconomic landscape remains uncertain due to ongoing geopolitical developments, which may impact energy prices and supply chains.
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The company's international business witnessed a decline on a year-on-year basis, reflecting the impact of near-term geopolitical developments.
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The EPC business reported a year-on-year revenue decline of 11%, primarily due to the timing and execution cycle of projects.
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The company faces challenges in maintaining consistent export growth due to geopolitical tensions and global risk aversion.
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There is uncertainty around the timing and scale of data center opportunities, which could impact future demand for cables and wires.
Q & A Highlights
Q: Can you provide insights on the price hikes and volume growth for this quarter, and how do you see pricing evolving in Q2 considering copper prices? Also, could you clarify the accounting treatment for acceptances in payables? A: Volume growth for the domestic cable and wire business was in the low- to mid-single digits, on a strong base from last year. We don't have specific guidance on copper prices for Q2, but we operate on a cost-plus model. Regarding acceptances, they have increased due to goods in transit, and the interest cost is included in finance costs.
Q: What are your thoughts on the data center opportunity and the decline in exports? A: The data center opportunity is significant, with potential demand translating to INR3.5 crore per MW of cables. We are optimistic about this market. The decline in exports was largely due to geopolitical issues in the Middle East, but we have a healthy order book and expect recovery, especially from North America and Europe.
Q: How do you see the profitability of BharatNet projects given the increase in fiber prices, and why was EPC revenue weak this quarter? A: We have secured fiber for the BharatNet project, mitigating exposure to current high fiber prices. Profitability is expected to remain in the high single digits. EPC revenue can vary due to milestone-linked payouts, and we expect no material dip on a full-year basis.
Q: How should we view full-year volume growth given the high base in Q1 and Q3? A: We aim to grow at 1.5x the market growth, which includes both volume and value. Over a 10-12 month period, we expect to see a trend that aligns with this guidance.
Q: Can you elaborate on the growth in the wires segment and whether it implies market share gains for Polycab? A: Wires outpaced cables with high single-digit growth. Market share analysis is typically done annually, but last year we gained 3% to 4% market share.
Q: What is the outlook for the FMEG segment, particularly the solar business, and its contribution to growth? A: The solar business is a major growth driver, benefiting from government incentives. It is the largest category within FMEG but still less than 50% of the segment. We expect strong growth to continue.
Q: How do you view the impact of data centers and T&D on industry growth? A: Data centers could significantly impact demand if capacity additions accelerate. T&D is expected to grow with increased circuit kilometer additions, translating into higher cable demand.
Q: Are you concerned about lower volume growth in recent quarters, and what is the outlook for exports? A: We are not concerned about short-term volume fluctuations and expect to maintain 1.5x market growth. Export momentum is returning, particularly in North America, and we aim for exports to exceed 10% of our top line by 2030.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
