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    Polycab India

    POLYCAB
    Capital Goods·16 Jan 2026
    Management Summary

    Polycab India delivered a strong Q3 FY26 performance, marked by robust domestic demand, significant volume growth in W&C, and healthy FMEG segment expansion. While profitability faced headwinds from commodity price inflation, the company strategically opted for staggered price increases to protect market share and volumes. The company maintained a strong balance sheet and continued its planned capex, expressing confidence in sustained growth and market leadership.

    Highlights

    5

    • Consolidated revenues grew 46% YoY in Q3 FY26, driven by strong execution in W&C and healthy FMEG growth.

    • Domestic Wires and Cables (W&C) segment revenue grew an exceptional 59% YoY, with volume growth of nearly 40%, indicating significant market share gains.

    • EBITDA grew 34% YoY to ₹6.3 billion, and PAT grew 36% YoY, reflecting strong operational performance.

    • The FMEG segment sustained impressive growth of 17% YoY, with the solar business growing over 2x, and achieved profitability for the fourth consecutive quarter.

    • The company maintained a strong balance sheet with a net cash position of ₹30.3 billion and continued its planned capex, with 9M FY26 spend at ₹10.9 billion.

    Concerns

    3

    • EBITDA margins compressed to 12.7% (13% excluding a one-off gratuity provision) due to sharp commodity price inflation (copper +22% sequentially) and a strategic staggered price pass-through.

    • The working capital cycle remained higher at 27 days, attributed to increased inventory in anticipation of strong Q4 FY26 demand, though normalization to 50-55 days is expected.

    • Exports contribution to consolidated revenue declined from 8.3% in Q3 FY25 to 6% in Q3 FY26, partly due to ongoing US tariff-related issues.

    What Changed3

    vs Q4 FY26

    Guidance items9 → 8 (-1)Risks discussed4 → 3 (-1)Q&A highlights8 → 6 (-2)
    Key financials

    Metrics

    11

    Periods

    3

    Headline

    7
    • Consolidated Revenue Growth
      46%
      YoY+46%
    • EBITDA
      6,300 Mn
      YoY+34%
    • EBITDA Margin
      12.7%
    • PAT
      6,300 Mn
      YoY+36%
    • PAT Margin
      8.3%

    Q3

    1
    • Capex
      $3.4B

    9M

    3
    • FY26 Revenue Growth
      30%
      YoY+30%
    • FY26 EBITDA Growth
      47%
      YoY+47%
    • FY26 PAT Growth
      47%
      YoY+47%

    Segment breakdown

    Wires and Cables (W&C)
    53% Revenue Growth59% Domestic W&C Revenue Growth40% Domestic W&C Volume Growth70% Wires Revenue Growth50% Cables Revenue Growth5% International Business Growth6% International Business Contribution9% Domestic Cables EBITDA Margin12% Domestic Cables EBITDA Margin Max15% Domestic Wires EBITDA Margin16% Domestic Wires EBITDA Margin Max15% Exports EBITDA Margin
    Fast Moving Electrical Goods (FMEG)
    17% Revenue Growth2x Solar Business Growth7% Solar Business Margin
    EPC
    4,069 Mn Revenue6.7% Segment Margin
    List

    Order Book

    low confidence

    Composition

    Mix2 contract types
    • BharatNet Project Execution₹ 450 crores56.3%
    • BharatNet Project O&M₹ 350 crores43.8%

    Share of order book by contract type (derived from disclosed amounts)

    "Management noted a healthy order book for international business and commenced execution of existing BharatNet orders, but did not provide a consolidated quantified order book value for the company."

    Source:
    Inferred

    Capital allocation

    3
    high confidence
    CategoryHeadline
    Capex

    ₹3.4 billion this quarter · ₹12 billion (annually through FY30) planned

    Debt

    Net ₹-30.3 billion

    Liquidity

    Cash ₹30.3 billion

    Company reported a net cash position.

    Guidance & targets

    8
    CategoryTargetPriority
    FMEG Growth
    FMEG Industry Growth
    1.5x - 2x industry growth
    		High
    FMEG Profitability
    FMEG EBITDA Margins
    8% to 10%
    		High
    EPC Profitability
    EPC Sustainable Operating Margin
    high single digits
    		Medium
    Working Capital
    Working Capital Cycle Days
    50 to 55 days
    		High
    Capex
    Annual Capex
    ₹12-16 billion
    		High
    A&P Spend
    A&P Spend as % of B2C Top-line
    3% to 5%
    		High
    Profitability
    Q4 Margin
    sequentially better
    		High
    Pricing
    Commodity Price Hike Pass-through
    remaining 20-25% of inflation
    		High

    Working Capital Cycle Days

    coming quarters
    Current27 days
    TargetNormalize to 50-55 days

    Why it matters

    Improvement in working capital management will free up cash and enhance operational efficiency.

    We expect this to normalize to our long-term steady range of 50 to 55 days in the coming quarters.

    How to verify

    key_financials.metrics[label='Working Capital Cycle']

    Risks & concerns

    3
    RiskSeverity

    Commodity Price Inflation

    Copper prices rose 50% and aluminium 25% from Jan 2025-Jan 2026; copper rose 22% in Q3 FY26 alone, impacting margins due to staggered price pass-through. — Management acknowledged

    high

    US Tariffs on Exports

    US tariffs are impacting export orders, contributing to a decline in export revenue contribution from 8.3% to 6% YoY, with management awaiting a final resolution. — Both acknowledged

    medium

    Working Capital Cycle Elongation

    Working capital cycle at 27 days, higher than the long-term range of 50-55 days, due to strategic inventory build-up for anticipated Q4 demand. — Management acknowledged

    medium

    Q&A highlights

    6

    “There are multiple factors at play. The primary reason has been the sharp rise in commodity prices. From January 2025 till January 2026, the copper, in rupee terms, has risen almost 50% and aluminium almost 25%. And in this quarter itself, the 22% inflation has happened in copper price compared to previous quarter.”

    Explains the key reason for margin pressure despite strong revenue growth, highlighting the company's strategic decision to stagger price increases to protect market share.

    asked by Sonali Salgaonkar

    2 min read6 chapters

    Detailed Narrative

    01

    Strong Revenue Growth Driven by Domestic W&C

    Polycab India reported a robust 46% YoY growth in consolidated revenues for Q3 FY26. This was primarily fueled by the Wires and Cables (W&C) segment, which saw a 53% YoY revenue increase, with domestic W&C growing an exceptional 59% YoY and volume growth of nearly 40%. The company highlighted significant market share gains and strong execution under Project Spring as key drivers for this performance.

    02

    Profitability Impacted by Commodity Inflation

    Despite strong top-line growth, EBITDA margins for Q3 FY26 stood at 12.7%, or approximately 13% excluding a one-off📎 gratuity provisioning of ₹219 million. This compression was largely due to a sharp rise in commodity prices, with copper increasing 22% sequentially in the quarter and 50% from January 2025 to January 2026. Management strategically chose to pass on these costs in a staggered manner to protect volumes and market share, with 75-80% of the inflation passed on within the quarter.

    03

    FMEG Segment Sustains Growth and Profitability

    The Fast Moving Electrical Goods (FMEG) segment delivered a healthy 17% YoY growth in Q3 FY26, outperforming the industry. The solar business was a standout performer, growing more than 2x YoY, driven by government incentive schemes. This marks the fourth consecutive profitable quarter for FMEG, with management targeting EBITDA margins of 8-10% by FY30, supported by strategic A&P investments.

    04

    Strategic Capex and Healthy Balance Sheet

    The company maintained a strong balance sheet with a net cash position of ₹30.3 billion at the end of Q3 FY26. Capital expenditure for the quarter was ₹3.4 billion, bringing the 9M FY26 total to ₹10.9 billion, aligning with the Project Spring guidance of investing ₹12-16 billion annually through FY30. This sustained investment is aimed at long-term growth and capacity expansion.

    05

    Working Capital Dynamics and Demand Outlook

    The working capital cycle was 27 days, higher than the long-term range of 50-55 days, primarily due to increased inventory in anticipation of strong Q4 FY26 demand, particularly in wires. Management expressed confidence in robust underlying demand, citing sustained momentum in government and private capex, a healthy real estate sector, and significant investments in power utilities and infrastructure.

    06

    Leadership Transition and Macro Tailwinds

    The Board approved the redesignation of Mr. Bharat Jaisinghani and Mr. Nikhil Jaisinghani as Joint Managing Directors, signaling leadership continuity. The company operates within a favorable macro environment, with India's Q2 FY26 GDP growth at 8.2%, strong domestic consumption, moderating inflation, and supportive monetary policy from the RBI, which cut policy rates by 25 basis points.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.