The National Stock Exchange of India announced on Monday (October 12) that it will exclude Polycab India Ltd from the equity derivatives segment, with no futures and options (F&O) contracts available for trading in the stock from December 30, 2026. According to the exchange circular dated October 12, the exclusion follows the company being shortlisted under the Insolvency and Bankruptcy Code (IBC) framework. The NSE stated that no fresh contracts for new expiry months will be issued after the current contract months expire, while existing contracts expiring in October, November and December 2026 will remain open for trading until their scheduled expiry dates. The exchange will also introduce new strike prices in the existing contract months before the discontinuation takes effect. As per CNBC-TV18, shares of Polycab India will react to this exclusion starting Tuesday, October 13, with existing contracts that run through the October, November and December series continuing to trade until their respective expiries, while no new contracts will be issued after December 30. However, The Economic Times reports that existing derivative contracts will continue trading as usual until their respective December expiries, with the NSE introducing a margin of 100% on all existing derivative contracts with effect on a T+2-day basis, applicable to all open positions as on October 13 and new positions created from October 14 onwards. Following the expiry of existing contracts, further surveillance actions of price band/gross settlement and more as under the IBC framework shall be applicable with effect from January 1, 2027.
In a significant development, Polycab India informed stock exchanges that the National Company Law Appellate Tribunal (NCLAT) has put on hold an October 7 order issued by the National Company Law Tribunal's (NCLT's), Ahmedabad Bench. The NCLT order had initiated the Corporate Insolvency Resolution Process (CIRP) against Polycab over a Section 9 application filed under the Insolvency and Bankruptcy Code, 2016, by operational creditor Asier Metals Private Limited regarding a ₹2.79 crore claim. During the hearing, Polycab's legal counsel highlighted a pre-existing dispute regarding payments and credit notes owed by the creditor, while also confirming the company's readiness to deposit the entire amount stated in Part IV of the insolvency application, without prejudice to its rights and contentions. Taking note of these developments, the NCLAT directed Polycab to deposit the amount via a fixed deposit receipt (FDR) with the Registrar in New Delhi within seven days, while staying the earlier NCLT verdict until further directions. Following this, Polycab has been placed under IRP Stage 0 for trading, where trading continues at the normal pace and fresh buying is not blocked by retail brokers. In its latest statement, Polycab confirmed that the NCLAT has stayed and kept in abeyance the order of admission in its entirety, with the appeal hearing scheduled for October 26, 2026. The company expressed confidence in its legal position, stating it has a strong case with good grounds on merits to set aside the NCLT order, describing the ₹2.79 crore claim as a commercial dispute.
Polycab India's revenue for the quarter increased by 39% on a year-on-year basis to ₹8,210 crore, higher than the CNBC-TV18 poll estimate of ₹7,902 crore. According to reports, the company's Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter grew by 32.49% on a year-on-year basis to ₹1,136 crore, marginally higher than expectations of ₹1,062 crore and last year's figure of ₹858 crore. The EBITDA margin for the quarter narrowed by 70 basis points on a year-on-year basis to 13.84%, slightly below the CNBC-TV18 poll expectation of 13.4%. The company also reported a 32.46% rise in consolidated profit after tax to ₹784 crore in Q1 FY27, compared to ₹595.12 crore in the corresponding quarter of the preceding fiscal year. During April-June, the company's wires and cables business posted a 39% year-on-year growth, led by a strong 43% increase in domestic revenues.
The company's wires and cables business revenue grew by 38% on a year-on-year basis to ₹7,202 crore, while its segment EBIT stood at ₹959 crore from ₹756 crore last year. As reported by CNBC-TV18, an estimate from Motilal Oswal had pegged the revenue growth at 35%. The strong performance across both revenue and profitability metrics demonstrates the company's robust operational execution despite the upcoming F&O segment exclusion. The removal of Polycab comes five years after it was included in the derivatives segment starting the September F&O series of 2021. Despite the current challenges, Polycab India shares have delivered handsome returns in excess of 200% in the last five years.
Despite the NSE exclusion announcement and ongoing insolvency proceedings, Polycab India shares ended positively on the NSE, closing 1.82% higher at ₹8,405 on Monday's session. However, The Economic Times reports that shares tumbled more than 5% on Tuesday after the NSE announcement, with the stock dropping to ₹7,955 apiece in Tuesday morning trading. According to latest reports, the stock opened at ₹8,250 and touched an intraday low of ₹7,955, down 5.35%, snapping its two days of winning streak. At 10:49 AM on Tuesday, Polycab India shares were trading at ₹8,185 apiece on the National Stock Exchange, falling 2.62%. CNBC-TV18 reports that shares closed at ₹8,260.00, down by ₹154.00, or 1.83% on the BSE on Tuesday. Year-to-date in 2026, the stock has gained around 7%, outperforming the benchmark Nifty 50, which dropped nearly 14% over the same time period, as per available exchange data. As per CNBC-TV18, when a stock is excluded from the F&O segment, it cannot be re-included for a 12-month period and post which it must meet every criterion prescribed for six months in a row, with the exchange's Risk Management Committee verifying that the security consistently satisfies all quantitative and qualitative parameters before standard derivative contracts are reintroduced. Following the exclusion, further surveillance actions of price band/gross settlement and more as under the IBC framework shall be applicable with effect from January 1, 2027.
