Polycab India share price falls despite strong Q1 results

Polycab India share price slipped around 4 percent on Friday even as the company reported its highest ever first quarter performance, with Q1 FY27 consolidated revenue rising 39 percent to about ₹8,210 crore and net profit jumping 33 percent to ₹797 crore.

Polycab India share price movement

Stock Performance

Metric	Value
Previous close (BSE)	₹9,216
Intraday low (BSE)	₹8,888
Intraday move	-4%
Price post results (previous day)	₹9,202
Six-month return	25.12%
Year-to-date return	16.29% to 22% (range from different data points)

• Share price fell to an intraday low of ₹8,888, down 4 percent from ₹9,216.
• Stock was trading about 1.3 percent lower at ₹9,202 shortly after the results.
• Polycab has delivered between 16 percent and 22 percent returns so far this calendar year.
• Six-month share performance is up 25.12 percent, indicating a prior rally.

Why the stock moved

Earnings And Margin Profile

Metric	Q1 FY27	Q1 FY26	YoY change
Revenue	₹8,209, ₹8,210 crore	₹5,906 crore	+39%
EBITDA	₹1,136 crore	₹857.7 crore	+32% to +32.5%
EBITDA margin	13.8%	14.5%	-70 bps
Net profit	₹797 crore	Not specified, implied ~₹600 crore	+33%
Net margin	9.7%	Not specified	Not stated

• Revenue growth of 39 percent was ahead of some analyst expectations.
• EBITDA grew around 32 percent, but margin contracted by 70 basis points to 13.8 percent.
• Net profit rose 33 percent to ₹797 crore, the company’s best Q1 performance.
• Margin compression and quality of growth, driven partly by commodity prices, weighed on sentiment.

Financial highlights

Segment Performance

Segment	Q1 FY27 revenue	YoY change	EBIT margin
Wires & Cables	₹7,202 crore	+38% to +39%	Not specified, EBIT ₹959 crore
FMEG	Approx. 9% of total revenue	+68% to +71%	8%
EPC	Not disclosed explicitly	-11%	11%

• Wires and cables contributed about 88 percent of total Q1 revenue.
• Wires and cables revenue grew 38, 39 percent year on year to around ₹7,202 crore.
• Segment EBIT for wires and cables rose to ₹959 crore from ₹756 crore a year earlier.
• FMEG revenue grew 68, 71 percent year on year across product categories.
• EPC revenue declined 11 percent due to project execution timing and seasonality.

Wires And Cables Detail

Metric	Detail
Domestic revenue growth	+43% YoY
Export revenue growth	-13% YoY
Volume growth	Low-to-mid single digits in wires & cables
Revenue share of exports	3.3% of total vs 5.2% last year

• Domestic wires and cables revenue rose 43 percent, supported by healthy demand.
• Export revenue fell 13 percent amid geopolitical disruptions in West Asia.
• Wires segment outpaced cables, with stronger channel sales than institutional sales.
• Management indicated wires and cables volume growth was only low-to-mid single digits.
• Revenue growth was significantly influenced by higher copper and aluminium prices.

FMEG And Solar Products

Metric	Detail
FMEG revenue growth	68, 71% YoY
Segment EBIT margin	8%
Solar products	More than doubled YoY, now largest FMEG category
Premium products share	Around 25% of FMEG portfolio

• FMEG business delivered 68, 71 percent revenue growth, outpacing the core cables business.
• Solar products more than doubled year on year and became the largest FMEG category.
• Segment EBIT margin expanded to 8 percent, aided by operating leverage and premium mix.
• Management targets FMEG EBITDA margins of 8, 10 percent by FY30.
• FMEG growth is expected at 1.5, 2 times industry growth, according to company commentary.

EPC And Order Book

Metric	Value
EPC revenue growth	-11% YoY
EPC EBIT margin	11%
EPC order book	₹10,900 crore
BharatNet share	₹8,000 crore
RDSS projects	₹2,900 crore
Expected BharatNet revenue recognition	₹4,500 crore over next three years

• EPC revenue declined 11 percent, reflecting project execution cycles and seasonality.
• Despite lower revenue, EPC maintained an 11 percent EBIT margin.
• Order book of about ₹10,900 crore provides medium-term visibility.
• BharatNet accounts for roughly ₹8,000 crore of the EPC backlog.
• Around ₹4,500 crore of BharatNet revenue is expected to be recognised over three years.

Management commentary

• Chairman and Managing Director Inder T. Jaisinghani said Q1 FY27 was Polycab’s highest ever first quarter revenue and profit.
• He cited government infrastructure spending, capacity expansion, innovation, and distribution growth as long-term drivers.
• Jaisinghani said these factors position Polycab to strengthen market leadership and deliver sustainable, industry-leading growth.
• Management reiterated focus on channel-led growth in wires and cables, which typically carries better margins.
• The company believes its diversified global footprint and order book support growth despite near-term export weakness.

Business context

• Polycab is a leading Indian manufacturer of wires and cables, with a growing FMEG portfolio.
• Wires and cables remain the core, contributing about 88 percent of Q1 revenue.
• FMEG, at around 9 percent of revenue, is scaling rapidly but has structurally lower margins than the consolidated business.
• The company is executing Project Spring, aimed at improving execution, mix and profitability across segments.
• Industry tailwinds include investments in power transmission and distribution, infrastructure and data centres.

Commodity and demand dynamics

• Q1 FY27 results showed Polycab’s sensitivity to copper and aluminium prices.
• Declines in these commodities in June led dealers to delay purchases, expecting further price falls.
• This behaviour limited volume growth in wires and cables despite strong reported revenue.
• The company’s guidance for wires and cables is to grow at 1.5 times industry growth, supported by sector tailwinds.
• Global uncertainty and lower export contribution, now 3.3 percent of revenue, remain watch points.

Corporate actions

Key Event

Item	Details
Event	Final dividend for FY26
Value	₹47 per share
Total payout	₹7,079.85 million
Approval date	June 30, 2026 AGM

• Polycab paid a final dividend of ₹47 per share for FY26 after shareholder approval.
• The total dividend outgo was about ₹7,079.85 million.
• The payout reflects the company’s balance sheet and cash generation.
• Dividend distribution comes alongside continued investment in capacity and distribution.

What investors are watching

• Investors appear concerned about modest volume growth in wires and cables despite strong revenue.
• Margin compression to 13.8 percent, though better than some expectations, is being closely tracked.
• Rising share of FMEG, with lower margins than the consolidated business, is a structural consideration.
• Execution of the ₹10,900 crore EPC order book, especially BharatNet, is a medium-term driver.
• The next major catalyst will be subsequent quarterly results and updates on export recovery and commodity trends.

Frequently Asked Questions

Why did Polycab India share price fall after its Q1 FY27 results?

Polycab India shares fell around 4 percent on the BSE despite reporting record first quarter revenue and profit. The decline came as investors focused on margin contraction, with EBITDA margin narrowing 70 basis points year on year to 13.8 percent, and on modest volume growth in the core wires and cables business, which management said was only in the low-to-mid single digits and partly driven by commodity price movements rather than underlying demand.

How did Polycab India perform across business segments in Q1 FY27?

In Q1 FY27, Polycab’s wires and cables segment delivered about ₹7,202 crore of revenue, up 38, 39 percent year on year, with domestic sales rising 43 percent but exports down 13 percent. The FMEG business grew 68, 71 percent, led by solar products that more than doubled and became the largest category, while segment EBIT margin expanded to 8 percent. EPC revenue fell 11 percent due to project timing, though it maintained an 11 percent EBIT margin supported by a ₹10,900 crore order book.

What are the growth drivers and risks for Polycab India after Q1 FY27?

Polycab’s growth outlook is supported by government infrastructure spending, investments in power transmission and distribution, data centres, and its Project Spring execution and distribution expansion. Management aims for wires and cables to grow at 1.5 times industry and FMEG at 1.5, 2 times industry, with FMEG margins reaching 8, 10 percent by FY30. Risks include sensitivity to copper and aluminium prices, softer export demand, and the impact of a rising FMEG share, which currently carries lower margins than the consolidated business.