Polycab India delivered exceptional Q4 FY26 results that exceeded analyst expectations, driving the stock to a new 52-week high of ₹8,940 on May 7, 2026. The company reported consolidated revenue of ₹8,864 crore, up 26.9% year-on-year, marking the highest quarterly revenue in company history. PAT grew 6.3% to ₹773 crore, also the highest-ever quarterly profit. The board declared a record dividend of ₹47 per share, representing a 34.3% increase from ₹35 per share in FY25. This strong performance prompted multiple brokerages to revise their targets upward, with JM Financial raising its target to ₹9,700, ICICI Securities modeling 35x FY28 EPS, and Motilal Oswal maintaining its ₹9,800 target.
The company's diversified portfolio showed robust growth across all key segments. The Wires and Cables segment grew 30% year-on-year, driven by strong domestic demand and the company's market share gains of 3-4 percentage points, bringing its total share to 30-31% of the domestic organised wires and cables market. The Fast-Moving Electrical Goods (FMEG) segment delivered exceptional 47% growth, with solar products emerging as the largest category within FMEG, growing nearly 2x year-on-year. The international business grew 18% year-on-year, contributing 4.4% to consolidated revenues. However, the EPC segment declined 15% due to project timing issues, though management expects recovery through the new subsidiary Polycon Infra Projects Private Limited.
Despite strong revenue growth, EBITDA margins compressed to 13.1% from the previous year's 14.7%, primarily due to a higher institutional product mix and weaker export realisation. However, the company's net cash position strengthened significantly to ₹4,190 crore from ₹2,460 crore, providing substantial financial flexibility. Motilal Oswal projects cumulative capex of ₹26.0 billion over FY27-28 compared to earlier estimates, with annual capex guidance of ₹1,200-1,600 crore for FY27. The brokerage values Polycab India at 40x FY28E EPS, estimating revenue and EBITDA CAGR of 19% each and net profit CAGR of approximately 18% over FY26-FY28. Analysts note that EBITDA margin recovery to the guided 13.5-14% range in FY27 remains the critical variable for sustained performance.
Polycab's Project Spring transformation blueprint continues to drive structural improvements, with the company committing ₹1,480 crore capex in FY26, a 54% increase from the previous year. The company has guided cumulative capex of ₹6,000-8,000 crore over the next five years, indicating sustained investment in capacity expansion. The FMEG segment is targeting EBITDA margins of 8-10% by FY30, compared to current sub-optimal levels, adding a credible second growth vector beyond the core cables business. Management's confidence is reflected in the highest dividend in company history at ₹47 per share, representing a payout ratio of 470% of face value. The combination of market share gains, capacity expansion, and rising dividend trajectory creates a compelling compounding story for long-term investors.
