Detailed Narrative
Record Financial Performance in FY26
Polycab India achieved its highest annual and quarterly revenues in FY26, with consolidated revenue crossing ₹285 billion, marking a 29% YoY growth. EBITDA grew even faster at 35% YoY, expanding margins to 13.9%. PAT surpassed ₹27 billion, a 32% YoY increase, with PAT margins at 9.4%, solidifying the company's position as the most profitable in the electrical industry for the fourth consecutive year.
Resilient Wires & Cables Business and Market Share Gains
The Wires & Cables segment delivered a strong 30% YoY growth in Q4 FY26, with domestic cables also growing 30% YoY. Despite low single-digit volume growth in Q4 due to external factors, the company's domestic organized market share for wires and cables increased to 30-31% for FY26, up 300-400 basis points from FY25. This gain reflects robust execution and a shift towards organized players.
Exceptional FMEG Segment Outperformance
The FMEG segment recorded an exceptional 47% YoY growth in Q4 FY26, marking its ninth consecutive quarter of outperformance. This growth was broad-based across all product categories, with the solar products business growing two-fold YoY and becoming the largest category within FMEG. The segment turned profitable in Q4 FY25 and continues to build momentum, with premium fans contributing 25% and the premium portfolio 35% to FY26 segment revenues.
Strategic Capital Expenditure and Capacity Expansion
Polycab made significant capital investments, with Q4 FY26 capex at ₹390 million and full-year FY26 capex at ₹14.8 billion, exceeding ₹14.5 billion. The company is on track with its planned capex program of ₹60-80 billion over the next five years, with 90% allocated to Cable & Wire capacity expansion. Current capacity utilization is in the mid-70s, and management ensures no scenario of running out of capacity due to continuous investments.
Macroeconomic Headwinds and Domestic Demand Drivers
While Q4 FY26 faced headwinds from geopolitical developments in the Middle East and renewed inflationary pressures, the domestic demand outlook remains robust. Key drivers include significant power capacity additions (55-56 GW in FY26), substantial Union Budget allocations (₹12.2 lakh crores), and private capex totaling ₹36-37 lakh crores by FY27. These investments are expected to fuel strong demand for wires and cables in sectors like utilities, metals, and manufacturing.
Expanding Global Footprint and Export Strategy
Polycab has significantly expanded its global footprint to 94 countries, up from 48 in FY2019. The international business grew 18% YoY in Q4 FY26, contributing 4.4% to consolidated revenue. The company aims for exports to contribute over 10% of total revenue by FY2030, leveraging re-established distribution networks in key markets like the US and strong growth in the power sector in regions like the EU and South America.
Disciplined Raw Material and Working Capital Management
The company effectively manages raw material price volatility by completely passing on price increases for materials like aluminum, copper, and PVC. Backward integration and heavy inventory ensure the availability of critical materials like XLPE. The working capital cycle improved to 25 days in Q4 FY26, though it is expected to normalize to a 45-50 day range, reflecting disciplined cash flow management and a strong net cash position of ₹41.9 billion.