Polycab India (POLYCAB IN) – Q1FY27 Result Update – Steady growth backed by domestic demand – Upgrade to ‘BUY’
Published on 16 Jul 2026
healthy domestic demand, robust execution, and favourable commodity-linked realizations. Wires outperformed cables during the quarter, while channel sales grew faster than institutional sales. Volume growth remained in the low-to-mid single digits on a high base, with pricing supported by higher commodity realizations. The international business declined 13.0% YoY due to geopolitical disruptions. EBIT margin for the W&C segment improved sequentially to 13.3%, driven by a favourable business mix and continued operational efficiencies, while the company maintained its EBIT margin guidance of 11-13%. We assign a SOTP-based target price of INR10,764 (earlier INR10,503), based on 40x FY28E P/E, and upgrade the stock to “BUY” from “Accumulate”, due to recent correction in the stock price and earnings upgrade.
