Polycab India shares surged over 7% on Thursday, hitting a 52-week high of ₹8,991.50, demonstrating exceptional investor confidence in the company's robust financial performance. According to latest reports, the stock has gained 34% from its early April lows, reflecting strong momentum following the company's strong Q4FY26 results. The market response comes despite a 160 basis points year-on-year drop in EBITDA margin to 13.1% during the quarter, as investors focus on the company's overall growth trajectory and strategic positioning.
For the quarter ending 31 March 2026, Polycab India reported consolidated revenue of ₹8,864 crore, reflecting a 27% year-on-year increase compared to the same period from the previous year. As reported by ETMarkets, the company achieved its highest-ever annual performance for FY26, with revenue rising 29% year-on-year to ₹28,884 crore. Profit after tax grew 32% to ₹2,708 crore for the full year, with margins improving to 9.4%. The board has recommended a dividend of ₹47 per share for FY26, demonstrating strong shareholder returns. Net income for the full year reached ₹26,720.33 million compared to ₹20,199.9 million a year ago, while basic earnings per share from continuing operations increased to ₹177.53 from ₹134.34.
The company's market share improved by four percentage points in FY26 to about 30-31%, positioning it as a key beneficiary of sustained demand uptick. According to Centrum Broking, Polycab continues to invest in capacities far ahead of time and will be a key beneficiary of sustained demand uptick as a market leader with largest capacity, robust capabilities and fastest execution. The wires and cables (W&C) sector, which remains the main contributor, posted a 30% year-on-year increase during the quarter, driven by strong domestic demand and enhanced execution capabilities. Within this sector, cables outperformed wires, with institutional sales growing faster than channel sales, demonstrating the company's diversified revenue streams and market positioning.
The company is commissioning its extra high voltage (EHV) cables plant by end-2026, being built at an investment of about ₹700 crore, which will add another lever to revenue growth. Polycab invested ₹1,500 crore in FY26 and plans to invest about ₹1,200-1,500 crore annually over the next five years. The company is also focusing on export markets, particularly the US which contributed about 40% of its exports, and re-established its distribution network over the last three-four months. The company targets to take its export share to 10% by FY30 from the current 4.4% under its Project Spring plan, while West Asia saw a hit in Q4 but demand is expected to recover strongly driven by reconstruction needs.
Despite near-term disruption, the domestic demand outlook remains strong, primarily led by the power sector. According to management in the earnings call, transmission line execution is expected to grow to 21,000-22,000 circuit kilometres (ckm) annually, against about 15,000 ckm over the last five years. The fast-moving electrical goods (FMEG) sector demonstrated impressive performance with revenues increasing 47% year-on-year, with solar products becoming a significant contributor, achieving nearly double growth during the quarter. The company's net cash position of ₹4,190 crore as of March-end, compared with ₹2,460 crore a year earlier, indicates a strong balance sheet position and continued market share gains.
The stock currently trades at about 43 times FY27 estimates EPS as per Bloomberg consensus, with margin recovery and sustained revenue growth being critical for future performance. Polycab continues to gain market share during the year, aided by execution under its "Project Spring" strategy and sustained demand across both domestic and international markets. The company owns over 28 manufacturing facilities located across Gujarat, Maharashtra, Uttarakhand, and the union territory of Daman, providing strong operational capabilities to capitalize on the expected growth in transmission line execution and EHV cable demand.
