Revenue growth stood at 46% year-on-year, sharply ahead of estimates of around 30%, driven by continued momentum in the wires and cables as well as the FMEG segments.
The wires and cables business posted a 46% YoY growth, led by strong volumes, private capex, housing demand and restocking, while FMEG continued to deliver positive EBIT. However, operating margins came under pressure, declining 110 basis points YoY to a five-quarter low.
Segmentally, margins in cables and wires fell 150 basis points, while the EPC segment saw a sharper 210-basis-point contraction.
Management said growth momentum remains strong in the March quarter, with price hikes already taken in January and further increases planned within the quarter to support sequential margin expansion, although margins could still decline on a YoY basis.
The company added that it has not seen any demand impact despite the sharp rise in commodity prices. Polycab also guided that EPC operating margins are expected to remain in the high single digits over the medium to long term.
Brokerage firm Citi reiterated its 'Buy' rating and raised its price target to ₹9,500, while Jefferies maintained a 'Buy' with a target of ₹9,225, citing that despite a nearly 50% rally since March 2025, the stock still trades at a slight discount to its five-year average valuation.
Jefferies views Polycab as a play on private capex, housing and infrastructure, and estimates an EPS CAGR of 25% over FY25-28.
Morgan Stanley also maintained an 'Overweight' rating with a target of ₹9,373, pointing to strong volume-led growth in the cables and wires segment, though it flagged margin pressure due to deferred pass-through of input costs, an unfavourable mix and higher advertising spends.
