This article first appeared on GuruFocus .
-
Consolidated Revenue Growth:46% year-on-year growth for Q3 FY26.
-
EBITDA Growth:34% year-on-year growth with margins at 12.7%.
-
Adjusted EBITDA Margin:Approximately 14% excluding one-off gratuity provisioning impact.
-
Profit After Tax (PAT):INR6.3 billion, reflecting 36% year-on-year growth.
-
PAT Margin:8.3% for the quarter.
-
Net Cash Position:INR30.3 billion at the end of the quarter.
-
Working Capital Cycle:27 days at the end of Q3 FY26.
-
Capital Expenditure:INR3.4 billion for the quarter, totaling INR10.9 billion for nine months FY26.
-
Wires and Cables Revenue Growth:53% year-on-year growth, with domestic segment growing 59%.
-
International Business Growth:5% year-on-year growth, contributing 6% to consolidated revenues.
-
FMEG Segment Growth:17% year-on-year increase in Q3 FY26.
-
EPC Revenue Growth:4% year-on-year, reaching INR4,069 million.
-
EPC Segment Profitability:INR272 million, with a margin of 6.7%.
-
Warning! GuruFocus has detected 6 Warning Sign with BOM:542652.
-
Is BOM:542652 fairly valued? Test your thesis with our free DCF calculator.
Release Date: January 16, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
-
Polycab India Ltd ( BOM:542652 ) reported a 46% year-on-year growth in consolidated revenues for Q3 FY26, driven by strong execution in the Wire and Cable segment and healthy growth in the FMEG business.
-
The company achieved its highest ever quarter-three PAT at INR6.3 billion, reflecting a 36% year-on-year growth.
-
The Wires and Cables business recorded a 53% year-on-year revenue growth during the quarter, with the domestic wire and cable business posting an exceptional 59% year-on-year growth.
-
The FMEG segment sustained its impressive growth momentum, delivering a 17% year-on-year increase in Q3 FY26 and remained profitable for the fourth consecutive quarter.
-
Polycab India Ltd ( BOM:542652 ) maintained a strong balance sheet, closing the quarter with a net cash position of INR30.3 billion.
Negative Points
-
EBITDA margins were impacted, standing at 12.7%, and would have been approximately 14% excluding a one-off impact of INR219 million due to gratuity provisioning.
-
Segment profitability was affected by continued commodity price inflation and depreciation of the Indian rupee, with copper and aluminum prices increasing significantly.
-
The international business growth was modest at 5% year-on-year, contributing only 6% to consolidated revenues.
-
There was a strategic decision to pass on the increase in raw material prices in a staggered manner, resulting in near-term margin pressure.
-
The company faced challenges in the US market due to tariff-related issues, impacting export growth.
Q & A Highlights
Q: Can you quantify the volume growth in the Cables and Wires (C&W) segment for this quarter year-on-year? A: Our domestic Cable and Wire business grew at 40% in volume this quarter, driven by sustained momentum in both government and private CapEx, as well as a pickup in the real estate sector.
Q: What led to the decline in EBITDA margins despite high volume growth? A: The major reason for the decline in EBITDA margins is the rise in commodity prices, particularly copper and aluminum. We have taken a strategic decision to pass on the increase in raw material prices in a staggered manner, which has resulted in near-term margin pressure but helps protect volumes and market share.
Q: How do you foresee the exports shaping up in the coming quarters? A: Our international business maintained steady momentum, recording a 5% year-on-year growth despite a high base. We have seen better performance in the Middle East and Latin America, and with a healthy order book, we expect this growth trajectory to continue. The US market was weaker this quarter due to tariff-related issues.
Q: What is the current capacity utilization, and how does it impact your operations? A: Our capacity utilization stood at around the early 80s percentage-wise. This level of utilization allows us to efficiently meet demand while maintaining operational flexibility.
Q: Can you provide insights into the performance of the FMEG segment, particularly the solar business? A: The FMEG segment sustained its growth momentum with a 17% year-on-year increase. The solar business was a standout performer, growing more than 2 times compared to the same quarter last year, driven by strong uptake from central and state rooftop solar incentive schemes. We expect this momentum to continue.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
