Polycab India (POLYCAB IN) – Q3FY26 Result Update – Strong domestic growth, wires outpaced cables – BUY
Published on 17 Jan 2026
The Wires & Cables (W&C) segment reported domestic volume growth of ~40%, along with realization improvement. Domestic W&C business grew by 59% YoY, Wires grew by ~70% and cables grew by ~50%. Wires grew on account of low base, channel restocking amid elevated copper prices and market share gains. The company's international business grew by 5% YoY in Q3FY26 and contributed 6.0% to the total revenue. W&C capacity utilization stood at early 80% in Q3FY26. EBITA margin was temporarily affected due to high A&P expense and one-off on account of gratuity provisioning on implementation of the new labor code. Company expects margins to normalize and move back on track as guided under Project Spring in the coming quarter. Its FMEG segment delivered another quarter of positive EBIT margin (2.9%) led by solar products which grew 2x and is expected to grow faster in coming years while company aims to achieve 1.5x-2x industry growth and EBITDA margin of 8-10% by FY30 through its Project Spring. We expect revenue/EBITDA/PAT CAGR of 17.1%/15.4%/14.1% over FY26-28E. We assign SOTP-based target price of Rs9,744 (Rs 9,781 earlier), implying PE of 40x FY28E.
