Polycab's Q1 beat, near-term prospects baked in its rich valuation

In the first quarter of the 2025-26 (Q1FY26), Polycab's revenue beat consensus, growing 26 per cent year-on-year (Y-o-Y) to ₹5,910 crore.

- DEVANGSHU DATTA

The cable & wire (C&W) segment grew 31 per cent and fast-moving electrical goods (FMEG) segment grew 18 per cent on year. The Ebitda (earnings before interest, taxes, depreciation, and amortisation) rose 47 per cent Y-o-Y to ₹860 crore and the margin was up 210 bps Y-o-Y to 14.5 per cent.

The profit after tax (PAT) grew 50 per cent Y-o-Y to ₹590 crore. Overall gross margin stood at 26.9 per cent versus 24.6 per cent in the year-ago quarter.

In C&W segment, domestic business grew 32 per cent Y-o-Y to ₹5,230 crore, with cables outperforming wires. International business grew 24 per cent Y-o-Y, on a low base. Exports accounted for 5.2 per cent of overall revenue versus 5.3 per cent in Q1FY25. Ebit margin improvement was led by price revisions, and a favourable product mix.

The FMEG revenue increased 18 per cent Y-o-Y to ₹450 crore and the segment posted Ebit of ₹9.8 crore against a loss of ₹2.8 crore in Q1FY25. Margin improvement was led by gross margin expansion, product mix improvement, and improved operating leverage.