Polycab India delivered robust first-quarter results for FY27, with revenue growing 39% year-on-year to ₹82.1 billion and EBITDA increasing 32% YoY to ₹11.4 billion. According to Motilal Oswal's research report dated July 16, 2026, the performance exceeded estimates by approximately 4% for revenue and 7% for EBITDA. The cable and wire segment revenue increased 38% YoY to ₹72.0 billion, while the FMEG (Fast Moving Electrical Goods) segment showed exceptional growth of 68% YoY to ₹7.6 billion, beating estimates by around 34%.
Despite strong top-line growth, operating margins faced pressure, declining 70 basis points YoY to approximately 14% due to a 1.4 percentage point decline in C&W margin to 13.3%. As reported by Motilal Oswal, management indicated that cable and wire volumes grew in low-to-mid single digits on a high base from Q1FY26, with wires outpacing cables. The recent correction in copper and aluminum prices led to 3-4% price revisions in the first fortnight, which is expected to translate into volume growth gradually.
The FMEG segment maintained its strong momentum, with the solar business remaining the primary growth driver as revenue more than doubled YoY. According to Motilal Oswal's analysis, the FMEG business continued to outperform, led by broad-based growth across key categories. The company's adjusted profit after tax increased 32% YoY to ₹7.8 billion, beating estimates by around 11% and aided by higher-than-estimated other income.
Motilal Oswal maintains its buy rating on Polycab India with a target price of ₹11,900, valuing the company at 45x FY28E EPS. The stock currently trades at 43x/35x FY27E/FY28E EPS respectively. As reported by Motilal Oswal, the brokerage maintains its earnings estimates for FY27/FY28 and remains optimistic about the demand outlook for the next 2-3 years, backed by strong underlying growth drivers. The company remains confident in its growth trajectory despite current margin pressures.
