Polycab India Limited — Q1 FY27 earnings call

Call held 16 Jul 2026

Management summary

Polycab India Limited reported a robust Q1 FY27, with consolidated revenues up 39% YoY and PAT growing 33% to INR 796.7 crores. This strong performance was driven by significant growth in both Wires & Cables (39% YoY) and FMEG (71% YoY) segments, despite headwinds in international business and EPC. The company maintained strong profitability with an EBITDA margin of 13.8% and focused on strategic investments and operational excellence.

Highlights

  • Consolidated revenues grew by 39% year-on-year, demonstrating strong performance.

  • EBITDA increased by 32% year-on-year, with margins at 13.8%, reflecting sequential improvement of 70 basis points.

  • Profit After Tax reached a record INR 796.7 crores, growing 33% year-on-year.

  • Wires & Cables segment registered a healthy 39% year-on-year growth, with domestic business up 43%.

  • FMEG segment delivered an outstanding 71% year-on-year growth, marking its tenth consecutive quarter of outperformance.

Concerns

  • International business witnessed a decline year-on-year due to near-term geopolitical developments.

  • EPC business revenues declined by 11% year-on-year, though profitability remained healthy.

  • Working capital cycle temporarily improved to 15 days due to increased payable days, expected to normalize to 45-50 days.

  • Raw material price volatility, particularly copper and aluminum plummeting in June, impacted channel stocking.

Key financials

  1. Consolidated Revenue Growth — +39%YoY
  2. EBITDA Growth — +32%YoY
  3. EBITDA Margin 13.8% +0.7%QoQ
  4. PAT ₹796.7 Cr +33%YoY
  5. PAT Margin 9.7%
  6. Finance Costs ₹80 Cr
  7. Other Income ₹104.9 Cr
  8. Net Cash Position ₹3,990 Cr
  9. Working Capital Cycle 15 days
  10. Capital Expenditure ₹320 Cr

What they filed

Q1 FY27: revenue up 39.0%, net profit up 32.8% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue5,498 5,226 6,986 5,906 6,477 +18%7,636 +46%8,864 +27%8,210 +39%
EBITDA632 720 1,025 858 1,021 +62%966 +34%1,161 +13%1,136 +32%
Net profit445 464 734 600 693 +56%630 +36%786 +7%797 +33%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

SegmentRevenue GrowthEBIT Margin
Wires & Cables39%13.3%
FMEG71%8%
EPC-11%—

Order book

medium confidence

Total value

₹10,900 Cr

as of 2026-06-30 quantified

Execution

execution piece for new infrastructure over a period of 3 years

Composition

Mix 2 projects
  • Bharat Net ₹8,000 Cr 71.1%
  • RDSS ₹3,250 Cr 28.9%

Share of order book by project, derived from disclosed amounts

The company maintains a healthy and sizable overall order book, with the EPC segment's Bharat Net and RDSS projects contributing INR 10,900 crores. International business also has a healthy order book, particularly from the US, Europe, and Latin America, despite recent geopolitical impacts.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹320 Cr
    • Building capacity and strengthening future growth drivers
    Capital expenditure during the quarter amounted to INR 3.2 billion, reflecting our continued commitment to building capacity and strengthening future growth drivers.
  • Debt Net cash ₹3,990 Cr
    Our balance sheet continues to remain strong with a net cash position of INR 39.9 billion.
  • Liquidity Cash ₹3,990 Cr
    Our balance sheet continues to remain strong with a net cash position of INR 39.9 billion.

Guidance & targets

Working Capital

  • Working Capital Cycle Working Capital · long-term · High confidence 45 to 50 days
    As these effects normalize, we expect the working capital cycle to settle within our long-term operating range of 45 to 50 days.

    — Shashank Yagnick

Profitability

  • Wires & Cables EBIT Margin Profitability · medium- to long-term · High confidence 11% to 13%
    Consistent with our Project Spring roadmap, we continue to maintain our medium- to long-term margin guidance of 11% to 13% for this business.

    — Shashank Yagnick

  • FMEG EBITDA Margins Profitability · by FY 2030 · High confidence 8% to 10%
    EBIT margins for the quarter were 8%, very much in line with the milestones laid out under Project Spring, where we target EBITDA margins of 8% to 10% by FY 2030.

    — Shashank Yagnick

  • EPC Operating Margins Profitability · medium to long term · High confidence high single-digit range
    Over the medium to long term, we continue to expect sustainable operating margins for the EPC business to remain in the high single-digit range.

    — Shashank Yagnick

  • FMEG EBITDA Margins (full year) Profitability · full year basis · High confidence 8% to 10%
    on a full year basis, we should be able to reach 8% to 10% of EBITDA margins on FMEG.

    — Shashank Yagnick

Volume

  • FMEG Growth vs Industry Volume · ongoing · High confidence 1.5x to 2x
    Our strategic priorities remain unchanged to grow at 1.5x to 2x of the industry growth while progressively enhancing profitability.

    — Shashank Yagnick

  • Overall Volume Growth vs Market Volume · ongoing · High confidence 1.5x
    But I think we have always guided that we will do 1.5x of market growth, which is a mix of both volume and value.

    — Shashank Yagnick

Revenue

  • Export Growth Revenue · by 2030 · High confidence north of 10% of overall top line
    We have given our guidance of going north of 10% of our overall top line by 2030.

    — Shashank Yagnick

What to watch in Q2 FY27

Working Capital Cycle Normalization

next quarter
Current 15 days
Target 45-50 days

Why it matters

To assess the stability of cash flow management and the impact of temporary factors on working capital.

As these effects normalize, we expect the working capital cycle to settle within our long-term operating range of 45 to 50 days.

Risks & concerns

  • Geopolitical developments impacting international business

    medium

    Ongoing geopolitical developments and disruptions in global trade routes, particularly around the Strait of Hormuz, contributed to inflationary pressures and a decline in international business.

    Management acknowledged

  • Raw material price volatility impacting channel stocking

    medium

    Volatile oil prices and plummeting copper/aluminum prices in June led to destocking by channels, impacting the working capital cycle and potentially future sales.

    Management acknowledged

  • Working capital cycle normalization

    low

    The working capital cycle temporarily improved to 15 days due to increased payable days from LCs, but is expected to normalize to the long-term range of 45-50 days, which could increase working capital requirements.

    Management acknowledged

Q&A highlights

8 direct
Price hikes, volume growth, copper prices for Q2, and accounting for acceptances and payable days Direct
So I think I can give you volume growth trajectory, which is put together, cable & wire domestic business grew from about low to mid-single-digit volume growth. ... Using LCs, we get payable days around, say, 80-90 days. And it's only a play of that. And if you look at receivables, you must be aware our business happens 90% through channel, and majority of that again comes from channel finance.

Clarifies the context of volume growth against a strong base, the company's cost-plus model for raw material price volatility, and the temporary impact of LCs on working capital days.

Asked by Aniruddha Joshi

Data center opportunity and export performance, particularly Middle East impact Direct
So firstly, on the data centre opportunity, I think it's a very big opportunity. We are hopeful that material translation should happen from estimates to reality. Today, I think the installed base is somewhere around 1.6 gigawatt. ... And on the second part, which was exports, so like you rightly mentioned, Middle East got impacted in the month of March. And certain geographies in the Middle East continue to be impacted.

Provides insight into a significant long-term growth opportunity in data centers (INR 20k-25k crores market) and explains the geopolitical impact on international business while noting diversified export growth.

Asked by Sonali Salgaonkar

Profitability of Bharat Net project given fibre price increases and reasons for weak EPC revenue Direct
So again, I think one was on Bharat Net and the high fibre prices. Happy to state that the strength of our procurement is such that we have been able to secure the fibre for the execution period, which is next 2 to 3 years. ... I would say EPC business is the nature of business wherein you shouldn't see on a 2 to 3 month basis. These are all milestone-linked payouts.

Assures that the company is insulated from fibre price volatility for Bharat Net and clarifies that EPC revenue fluctuations are due to project milestone timing, not underlying weakness.

Asked by Pulkit Patni

Full-year volume growth outlook and potential market share gains in wires segment Direct
But I think we have always guided that we will do 1.5x of market growth, which is a mix of both volume and value. ... In last quarter, in fact, we updated that overall, we have gained 3% to 4% market share.

Reiterates the company's target to grow 1.5x the market and confirms recent market share gains, particularly in the wires segment which outpaced cables.

Asked by Akshay Gattani

Volume growth opportunity from transmission (T&D) and solar, and demand from infra/industrial sectors Direct
See, overall generation side, I'm sure we are all happy with the developments that are happening on renewable generation. I think around 55-56 gigawatt got added in the last financial year. ... Second piece is the transmission and distribution. So if you look at period of FY20 to FY25, the average transmission line capacity addition was around 15,000 circuit kilometres. Now that has to substantially go up to about north of 20,000.

Highlights strong tailwinds from government initiatives in renewable energy and T&D infrastructure, indicating significant future demand for cables and wires.

Asked by Ravi Swaminathan

Impact of raw material price movements on channel stocking behavior Direct
So I think as soon as price tends to go up, the stocking happens. If price comes down, destocking happens. ... But compared to the regular estimate of a typical quarter, it was definitely impacted by the plummeting of raw material prices.

Explains how raw material price volatility directly influences channel stocking, leading to suboptimal stocking levels when prices fall, and its temporary effect on working capital.

Asked by Achal Lohade

Price correction in early July and drivers of FMEG margin improvement Direct
Yes. So, I think we have taken some price correction or rather price revision in the first fortnight, and we will see the translation into volumes gradually. ... One is the operating leverage. And thanks to our low base, we have been able to deliver higher growth and we have been able to gain substantial benefits from operating leverage.

Confirms a recent 3-4% price correction and details the key factors behind FMEG's strong margin performance, including operating leverage and premium product mix.

Asked by Ashish Kanodia

Scale and sustainability of the FMEG solar segment and management's view on overall volume growth deceleration Direct
So Sameer, I'm sure you are aware, we don't usually, by design, give a split of the FMEG basket, but I'm happy to state and like you have mentioned, it's the single largest contributor, but it's still less than 50%. ... But in our assessment, we have seen the CAGR of our volume growth has always been double digits in the last 5 to 7 years. So quarter-on-quarter may or may not be a good indicator.

Clarifies that solar is the largest FMEG category and growing strongly, while management emphasizes assessing volume growth over longer periods (10-12 months) rather than quarterly fluctuations.

Asked by Keyur Pandya

3 min read 7 chapters

Detailed narrative

Q1 FY27 Consolidated Performance Highlights

Polycab India Limited delivered a strong Q1 FY27, with consolidated revenues growing 39% year-on-year. The company's EBITDA increased by 32% year-on-year, achieving a margin of 13.8%, which reflects an improvement of approximately 70 basis points sequentially. Profit After Tax (PAT) reached its highest ever quarterly figure of INR 796.7 crores, representing a 33% year-on-year growth, with a PAT margin of 9.7%. This robust performance was driven by favorable demand conditions and strategic investments.

Wires & Cables Segment Drives Growth

The Wires & Cables segment maintained strong momentum, registering a healthy 39% year-on-year growth during the quarter. Within this, the domestic Wires & Cables business delivered an impressive 43% year-on-year growth, supported by robust market demand and effective execution across key channels. Wires grew faster than cables, and channel sales outperformed institutional sales. The segment's EBIT margins stood at 13.3%, consistent with the medium- to long-term guidance of 11% to 13%.

FMEG Business Outperforms with Strong Profitability

The FMEG segment delivered another outstanding quarter, recording 71% year-on-year growth, marking its tenth consecutive quarter of outperforming industry growth rates. The solar business, the largest category within FMEG, continued to be the primary growth engine, achieving more than twofold year-on-year growth. EBIT margins for FMEG reached 8%, aligning with the Project Spring target of 8% to 10% EBITDA margins by FY2030, driven by operating leverage and a richer product portfolio with premium mix reaching 25%.

EPC Business and Order Book Dynamics

The EPC business reported revenues of INR 307.7 crores during Q1 FY27, reflecting an 11% year-on-year decline, primarily due to the timing and execution cycles of projects. Despite the lower revenue base, profitability remained healthy at INR 33.8 crores, translating into a margin of 11%. The combined order book for Bharat Net and RDSS projects stands at INR 10,900 crores, with INR 4,500 crores for Bharat Net's new infrastructure execution expected over three years.

Working Capital and Capital Expenditure Management

The average working capital cycle improved significantly to 15 days in Q1 FY27, aided by a temporary increase in payable days due to the use of letters of credit for raw material procurement. Management expects this cycle to normalize to its long-term operating range of 45 to 50 days. Capital expenditure during the quarter amounted to INR 320 crores, reflecting the company's continued commitment to building capacity and strengthening future growth drivers. The company maintains a strong net cash position of INR 3,990 crores.

Market Outlook and Growth Opportunities

Polycab remains optimistic about the Indian economy's structural growth story, driven by robust domestic demand, public investment, and healthy credit expansion. Significant opportunities are identified in the data center market, estimated at INR 20,000-25,000 crores over 6-8 years, and the Transmission & Distribution (T&D) sector, with transmission line capacity additions projected to increase to over 20,000 circuit kilometers annually. The company aims to grow at 1.5x the market growth rate.

Impact of Raw Material Volatility and Channel Behavior

The global macroeconomic landscape, influenced by geopolitical developments, continues to cause volatility in raw material prices. While oil prices have moderated, copper and aluminum prices plummeted in June. This price movement led to destocking by channels, as stocking typically occurs when prices rise and destocking when they fall. This temporary channel behavior impacted the working capital cycle and highlights the fluid nature of the market.

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