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Polycab India
Our verdict on Polycab India isn’t the consensus take — see where we landed, and the one risk the bull case glosses over.
See the verdict — free →Does management do what it says?
For FY26, the company reported EBITDA margins of 13.9% at the company level, with Wires & Cables specifically noted as being 'definitely above' that level, surpassing the 11-13% long-term guidance. (1 exceeded across 1 tracked commitment)
“11 – 13% Wires & Cables EBITDA”
The working capital cycle reduced to 33 days at the end of Q2, which is below the long-term steady range of 50-55 days. Management expects this to normalize back to the 50-55 day range in the coming quarters. (1 met, 3 exceeded across 4 tracked commitments)
“We expect this to normalize to our long-term steady range of 50 to 55 days over the coming quarters.”
See the full cited Management analysis of Polycab India
How durable is the business?
The segment continues to be the primary engine, growing revenue by 21% YoY and 10% QoQ. Profitability (EBIT) margins improved significantly to 15.1% from 12.4% a year ago, driven by operating leverage and a favorable business mix. (1 expanding)
“The segment continued to deliver robust growth... Margins improved ~270 bps YoY and ~40 bps QoQ to 15.1%.”
The FMEG segment achieved its second consecutive profitable quarter with EBIT margins expanding to 2.1% from a loss in the previous year. (5 expanding across 1 engine)
“The FMEG business concluded a strong year with a solid Q4 performance, delivering 47% YoY growth for the quarter... Revenue (₹ Mn) Q4FY26 6,918”
See the full cited Business Model analysis of Polycab India
Where does growth come from?
The company is aggressively building capacity, evidenced by a significant jump in capital expenditure (Capex) to ₹ 4,139 Mn this quarter, compared to ₹ 2,813 Mn in the same quarter last year. (4 accelerating, 1 steady across 5 signals, 1 leading indicator)
“We remain on track to execute our planned capex program of INR 60 billion to INR 80 billion over the next 5 years... For the first time in our history, annual capex exceeded INR 14.5 billion”
The company is outperforming its own long-term guidance, growing at 1.5x to 2x the market rate in core segments during the first half of the year. (3 accelerating, 1 steady across 4 signals)
“Market share gains in domestic organized W&C industry via strategic internal initiatives... 26-27% (FY25) to 30-31% (FY26)”
See the full cited Future Growth analysis of Polycab India
What could break the thesis?
INTENSIFYING. Revenue for the EPC segment declined by 19% YoY in Q2FY26, continuing the downward trend in top-line performance. (2 intensifying, 1 easing, 2 stable, 2 high-severity)
“The outbreak of the conflict between the U.S., Israel and Iran towards the end of February 2026 has been the single most consequential macro development of the quarter... Crude oil prices have risen very sharply with Brent now hovering around $100 per barrel, while disruptions in the Strait of Hormuz have intensified the supply concern.”
Rising commodity prices are currently acting as a tailwind for revenue growth, though they remain a structural risk to cost management. (2 stable, 2 intensifying)
“risk and uncertainties regarding fluctuations in earnings... namely changes in regulatory environments, political instability, change in international copper, aluminum, oil prices and input costs”
See the full cited Risk analysis of Polycab India
Read the full thesis on Polycab India
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