Polycab India has reported its most substantial single-year market share gain in the organized Wires and Cables (W&C) segment, reaching 30-31% in fiscal year 2026. This represents a 300-400 basis points increase from 26-27% in FY25, primarily driven by an 18% domestic volume growth, significantly outpacing the industry's 11% expansion.
Strong Financial Performance Propels Growth
The company's stock responded positively, soaring 33% in FY26. This surge aligns with Polycab's impressive financial metrics, including a 22.4% net profit CAGR and a 26.3% revenue CAGR over the past two years. For FY26, Polycab recorded its best annual performance to date:
- Revenue surged 29% year-on-year to Rs 28,884 crore.
- EBITDA climbed 35% to Rs 4,006 crore.
- Profit after tax rose 32% to Rs 2,708 crore.
- Net profit margins improved to 9.4%.
The board also approved a 470% dividend for FY26, translating to Rs 47 per share.
FMEG and EPC Businesses Contribute Significantly
Polycab's Fast Moving Electrical Goods (FMEG) business has shown a remarkable turnaround, remaining profitable for five consecutive quarters. Segment margins improved to 2.7%, a stark contrast to the Rs 389 million loss reported in FY25.
Meanwhile, the Engineering, Procurement, and Construction (EPC) business is undergoing a re-rating, bolstered by increasing demand in the W&C market. The EPC order book expanded sharply to nearly Rs 11,300 crore, up from approximately Rs 6,200 crore at the end of FY25. This growth was largely due to significant BharatNet Phase III contracts, totaling around Rs 8,000 crore, secured across Karnataka, Goa, Bihar, and Tamil Nadu. While project execution timelines impacted FY26 revenue growth for EPC, management is strategically leveraging this segment as a forward-integration platform to drive core W&C sales, aiming for stable high-single-digit EBIT margins through disciplined bidding.
Q4 FY26 Highlights and Future Outlook
In Q4 FY26, Polycab reported a consolidated revenue of Rs 8,865 crore, a 27% year-on-year increase. Consolidated EBITDA rose 13.3% to Rs 1,160 crore, with adjusted net profit up 6.3% to Rs 770 crore. These results were primarily driven by strong performance in the Cables and Wires segment and sustained execution in the FMEG business.
Looking ahead to FY27, key areas to monitor include the cadence of export recovery, the progression of FMEG margins towards guided ranges, and the resilience of W&C margins. With Rs 6,000-8,000 crore in capital expenditure planned for scaling under its 'Spring and EHV' initiatives, Polycab anticipates a continued long runway for growth without significant execution challenges.