The company reported domestic volume growth of around 18%, significantly ahead of industry growth of about 11%.
Revenue increased 29% year-on-year to Rs 288.8 billion, driven by strong performance in the wires and cables segment, which grew 32.7% to Rs 255.3 billion.
Wires and cables growth tracked at around 1.5x-2x industry growth, while the FMEG business expanded at nearly 3x-4x industry growth.
The brokerage also highlighted FY26 capex of Rs 14.8 billion, which remains aligned with Polycab’s planned Rs 60-80 billion investment programme over FY26-FY30.
Management continues to view EPC as a strategic forward-integration platform that supports incremental demand for its core wires and cables business.
Equirus Securities, in its analysis of Polycab India’s FY26 Annual Report titled “Compounding, the Polycab Way”, highlighted that FY26 marked a strong start to the company’s five-year Project Spring strategy, with execution tracking at or ahead of management guidance across most key parameters.
Market Share Gains and Core Wires & Cables Momentum
According to Equirus, Polycab delivered its sharpest single-year market share gain in recent history, with its share in the organised wires and cables market rising to approximately 30-31% in FY26 from 26-27% in FY25. The company reported domestic volume growth of around 18%, significantly ahead of industry growth of about 11%.
Revenue increased 29% year-on-year to Rs 288.8 billion, driven by strong performance in the wires and cables segment, which grew 32.7% to Rs 255.3 billion. Despite higher copper prices, gross margins improved to 25.3% while EBITDA margin reached a record 13.9%.
Project Spring Ahead of Plan
Equirus noted that the first year of Project Spring delivered ahead of expectations on several metrics. Wires and cables growth tracked at around 1.5x-2x industry growth, while the FMEG business expanded at nearly 3x-4x industry growth. Wires and cables EBIT margin stood at 13.6%, above the company’s guided range of 11-13%.
The brokerage also highlighted FY26 capex of Rs 14.8 billion, which remains aligned with Polycab’s planned Rs 60-80 billion investment programme over FY26-FY30.
FMEG Business Turns a Growth Driver
One of the key positives identified by Equirus was the structural turnaround in the FMEG segment. The business remained profitable for five consecutive quarters, with margins turning positive at 2.7% compared to losses in the previous year.
Solar emerged as the standout category, registering 3.5x volume growth, achieving around 1.6 GW of installed capacity and capturing nearly 20% market share in string inverters. Premium fans, switches, switchgear and conduits also contributed to broad-based growth.
BharatNet Orders Boost EPC Visibility
Equirus highlighted that Polycab’s EPC order book expanded sharply to around Rs 113 billion from Rs 62 billion at the end of FY25, supported primarily by BharatNet Phase-III contracts worth nearly Rs 80 billion across Karnataka, Goa, Bihar and Tamil Nadu.
Management continues to view EPC as a strategic forward-integration platform that supports incremental demand for its core wires and cables business.
Exports Remain the Key Monitorable
The brokerage identified exports as the only area where performance lagged internal aspirations. Export contribution declined to 5.4% of revenue in FY26 from 6% in FY25, impacted by geopolitical disruptions in the Middle East and project delays.
However, Polycab expanded its international footprint to 94 countries and revamped its US distribution strategy. Equirus believes achieving the company’s target of exports contributing more than 10% of revenue by FY30 will depend on the success of these initiatives.
Financial Observations
Equirus also flagged a few balance-sheet developments worth monitoring. Operating cash flow doubled to Rs 38.1 billion, aided in part by increased supplier financing. Inventory levels rose as the company stocked copper ahead of price increases, while discounting as a percentage of sales increased marginally to 1.6% from 1.4% in FY25.
Key Watchpoints for FY27
According to Equirus, the key factors to monitor in FY27 include the pace of export recovery, progress in FMEG profitability towards the company’s medium-term targets, and sustainability of margins in the wires and cables business.
Overall, Equirus believes Polycab remains well positioned to benefit from structural growth opportunities in power, renewable energy, data centres, infrastructure, real estate and exports, and does not foresee any significant execution challenges for the company.
