AI-generated · cited to primary sources · not investment advice
Polycab India (542652) Oct 2025 Filing Analysis
Does management do what it says?
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.”
The company has spent ₹ 10.89 billion in the first nine months of FY26, putting it on track to meet the annual guidance of ₹ 12-16 billion. (2 met across 2 tracked commitments)
“₹ 12– 16 Bn Annual Capex”
Management confirmed that growth in the FMEG segment was led by the solar category during the quarter. (2 in progress, 2 met across 4 tracked commitments)
“8– 10% FMEG EBITDA”
Export contribution for Q3FY26 stood at 6.0% and 5.9% for 9MFY26, showing a decline from 8.3% in Q3FY25, indicating progress toward the FY30 target is currently lagging. (1 in progress across 1 tracked commitment)
“>10% Contribution from Exports”
Management reiterated that the EHV capacity is on track to come on stream by the end of the 2026 calendar year. (1 in progress across 1 tracked commitment)
“We are expecting that plant to get commissioned by the end of next calendar year. So perhaps we'll be able to start seeing benefit from the EHV sales only in FY 2028.”
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 segment continues to expand with 21% YoY revenue growth and significant margin expansion to 15.1% EBIT, driven by volume growth in the high teens and a shift toward premium 'Class 2' wires. (1 expanding)
“The Wires & Cables business delivered a 21% YoY revenue growth, supported by high-teen volume expansion during the quarter... EBIT margins for the Wires & Cables segment stood at 15.1%, improving by ~270 bps YoY.”
The Solar category is emerging as a major driver within FMEG, poised to become the largest category in that portfolio this year due to government incentive schemes. (1 expanding)
“Solar category maintained strong momentum... this category is poised to become the largest within the FMEG portfolio for the year”
See the full cited Business Model analysis of Polycab India
Where does growth come from?
Institutional demand is accelerating through the EPC segment with the upcoming execution of the BharatNet project (₹ 80 billion order book) starting in Q3 FY26, alongside ongoing RDSS projects. (1 accelerating across 1 signal)
“the order book for RDSS currently stands at ₹ 33.5 billion. And for BharatNet... the order book... stands at about ₹ 80 billion. we will also start executing the BharatNet project from Q3 onwards.”
Solar has emerged as a high-growth engine and is now on track to become the largest category within the FMEG portfolio this year. (4 new trend, 1 steady across 5 signals)
“Solar category maintained strong momentum... this category is poised to become the largest within the FMEG portfolio for the year.”
See the full cited Future Growth analysis of Polycab India
What could break the thesis?
While revenue declined 19% YoY due to the execution cycle, the risk is stable as the order book remains healthy (₹ 33.5 billion for RDSS and ₹ 80 billion for BharatNet) with better execution expected in H2. (1 stable)
“During Q2 FY 2026, EPC revenues declined 19% YoY to ₹ 4,024 million, primarily due to project execution cycle... Our EPC order book remains healthy, providing strong visibility for future growth.”
Margins have recovered strongly, with EBIT margins for Wires & Cables reaching 15.1%, up 270 bps YoY, driven by operating leverage and a favorable business mix. (1 easing)
“On profitability, EBIT margins for the Wires & Cables segment stood at 15.1%, improving by ~270 bps YoY and ~40 bps QoQ, supported by operating leverage and favourable business mix.”
See the full cited Risk analysis of Polycab India
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