Polycab India (POLYCAB IN) – Management Meet Update – Long Growth Runway and Expanding Global Footprint – BUY
Published on 03 Sep 2026
We met with the management of Polycab India (POLYCAB) to discuss the company’s performance, growth prospects and strategic priorities. The management remains constructive on the W&C demand environment, with structural demand continuing to remain strong, despite commodity price volatility. POLYCAB has consistently gained market share, increasing its organized W&C market share from ~18% in FY19 to 30-31% in FY26, with the management expecting further gains going ahead. The company’s distribution network remains a key competitive moat, with ~90% of sales routed through distribution, while backward integration and scale-led sourcing provide additional advantages. The management believes industry supply will remain below demand at least until FY30, despite capacity additions, supporting a favorable industry backdrop. Cables account for ~70% of the W&C business, while wires are seeing strong demand from real estate, which the management expects to remain a key growth driver over the next 2-3 years. Exports, particularly to the US and Middle East, remain another significant growth opportunity, while FMEG growth is broadening beyond solar into other categories. We expect revenue/EBITDA/ PAT CAGR of 22.6%/23.0%/22.9% over FY26-28E. We assign SOTP-based TP of INR10,764, based on 40x FY28E P/E, and maintain ‘BUY’.
