International brokerage Jefferies has raised its target price to ₹10,920 while reiterating its 'buy' rating on Polycab India, forecasting an upside of 14% from current market levels. According to The Economic Times, shares of Polycab India rallied as much as 4% to their day's high of ₹9,994 on the BSE following the upgrade announcement. The brokerage cited market share gains, data centre opportunities, a healthy order pipeline, diversified revenue streams and strong earnings growth expectations as key drivers for the upgrade, despite the stock's 30% run-up in 2026 already. Jefferies increased its target valuation multiple to 41x earnings, representing about a 10% premium to the stock's five-year historical average multiple of around 37x.
Polycab India reported a steady set of numbers for Q4FY26, with consolidated profit rising 7% year-on-year to ₹786 crore from ₹734 crore in the same period last year. As reported by ET Now, revenue saw a strong jump of 27% to ₹8,864 crore compared to ₹6,986 crore, supported by robust demand across segments. EBITDA grew 13.2% YoY to ₹1,161 crore from ₹1,026 crore, reflecting healthy operating performance, though EBITDA margin came in at 13.1%, down from 14.7% a year ago, indicating unfavorable business mix and cost pressures. Alongside the results, the company recommended a dividend of ₹47 per share. According to CNBC TV18, the company reported mid- to high-single-digit volume growth during April and May despite a strong base from the same period last year, when volumes had grown by more than 25%.
The company has increased its market share by 12 percentage points over the past five years to about 31% in the domestic organised cables and wires sector, as reported by Business Standard. This leadership is supported by manufacturing scale that is twice that of peers, a robust portfolio of 10,000 stock-keeping units (SKUs), and a vast network of dealers and distributors. The order book from BharatNet and RDSS projects stands at ₹11,300 crore and is expected to add about ₹1,800-2,000 crore to revenue in FY27. Jefferies considers the company a proxy play on the power sector given the expansion in infrastructure, with multiple growth drivers supporting optimism around Polycab's prospects.
The traction in the fast-moving electrical goods (FMEG) segment is another key growth driver, with the segment now profitable for five consecutive quarters and margins at 2.7% compared with a loss of ₹38.9 crore in FY25. Within the FMEG space, solar was the growth driver as it registered 3.5-times growth year-on-year and is now the largest and fastest-growing FMEG category. Recovery is also being led by premium fans, business-to-consumer (B2C) switchgears and switches. Equirus Securities noted that FMEG has structurally shifted from being a drag to a compounding lever, with the segment now expected to sustain break-even at the operating-profit level.
With ₹6,000-8,000 crore of capital expenditure queued under the company's multi-year strategic roadmap, Project Spring, and scaling up of extra-high-voltage (EHV) cables, the runway remains long, according to Equirus Securities. The company announced an extension of CFO Niyant Maru's tenure from July 17, 2026, to April 16, 2027, ensuring continuity in its financial leadership. Kotak Research expects the growth outperformance to continue with scaling up of exports, operationalisation of the new EHV cable unit, and higher focus on fast-growing segments such as data centres, electric vehicles and defence. Motilal Oswal Research expects revenue and operating profit to rise 22-23% over FY26-28, with the brokerage maintaining a buy rating and target price of ₹11,950.
