Polycab India’s Q2 Performance Analyzed

Polycab India had a strong second quarter (Q2) of its fiscal year 2026 (FY26), according to recent reports from analysts Centrum and Nuvama. This positive outlook is based on impressive growth across the company’s key business areas, along with improving profits. Let’s break down what the analysts are saying.

Key Points

• Strong revenue growth: Polycab saw 18% Y-o-Y revenue increase, driven by W&C segment.
• Improving Profitability: Ebitda margin reached 15.8%, a significant jump for the quarter.
• Government & Private Spending: Increased infrastructure investment fuelled W&C demand.
• FMEG Growth: The Fast-Moving Electrical Goods segment grew by 14% Y-o-Y.
• Solid Margins: Gross and Ebitda margins expanded significantly due to efficient operations.
• Positive Analyst View: Analysts maintain a ‘Buy’ rating, boosting their price targets.

The company’s overall performance was supported by growth in various business segments. The Wires & Cables (W&C) segment experienced a notable 21% increase year-over-year, driven by strong demand from both government and private sectors within India. This growth was further bolstered by rising commodity prices.

Additionally, Polycab’s international business contributed 6.5% to total revenue and grew 25% year-over-year. The Fast-Moving Electrical Goods (FMEG) segment recorded a 14% Y-o-Y growth, reflecting increasing consumer demand for electrical products.

The EPC (Engineering, Procurement, and Construction) segment saw a 19% decrease in revenue compared to the previous year, but Ebit margins increased by 42% year-over-year, indicating improved operational efficiency in this area.

Inder T Jaisinghani, Chairman and Managing Director of Polycab India, highlighted the company’s record-breaking revenue and profitability, attributing it to the strength of its core Wires & Cables business and the growing popularity of its FMEG products. He emphasized the positive impact of government infrastructure spending and increasing private investment.

Analysts are particularly optimistic about Polycab’s future, anticipating continued growth, healthy margins, and strong demand visibility throughout FY26. Based on these findings, analysts have increased their price targets, citing a strong foundation for the company’s ongoing success.

Ultimately, Polycab’s Q2 performance demonstrates its ability to capitalize on growth opportunities and maintain its position as a leading player in the Indian electrical industry.