Polycab India Lights Up Q2 FY26 with Record Performance

Polycab India Limited, a leading player in the electrical industry, has reported an exceptional performance for the second quarter of Fiscal Year 2026 (Q2 FY26). The company achieved its highest-ever second-quarter and half-yearly revenue, EBITDA, and Profit After Tax (PAT), underscoring robust demand and strong execution capabilities. Consolidated revenue for Q2 FY26 stood at ₹6,477.2 crore, marking an impressive 18% year-on-year (YoY) growth. This strong top-line expansion was accompanied by a significant improvement in profitability, with EBITDA growing by 62% YoY to ₹1,020.7 crore and PAT surging by 56% YoY to ₹693 crore. The PAT margin improved by approximately 260 basis points YoY, reaching 10.7% for the quarter.

The stellar performance was primarily driven by the robust growth in the Wires & Cables (W&C) segment, complemented by healthy contributions from the Fast Moving Electrical Goods (FMEG) business. The W&C segment, which accounts for the lion's share of revenue, delivered a 21% YoY growth, fueled by high-teen volume expansion. This was supported by increased government spending, improved project execution, and a favorable commodity environment. Both cables and wires registered strong growth across distribution and institutional channels, indicating broad-based demand and market share gains. The FMEG business, while smaller, also showed healthy growth, with solar products emerging as a standout performer due to strong demand under central and state incentive schemes. The EPC segment, however, saw a 19% YoY decline in revenue, attributed to project execution cycles, though its profitability improved due to a one-off gain.

Polycab's strategic roadmap, 'Project Spring,' continues to build execution momentum. The company is ahead of its FY2030 guidance for W&C growth, with margins also exceeding the guided range. Exports grew 25% YoY in H1 FY26, demonstrating strong international traction. In FMEG, Polycab is outpacing industry growth, maintaining focus on margin improvement, and progressing towards its 8%-10% EBITDA target. The company incurred ₹750 crore in capex during H1 FY26, consistent with its annual guidance of ₹1,200-1,600 crore, signaling continued investment in growth. Furthermore, Polycab increased its dividend payout to 26.3% for FY2025, aligning with its goal of crossing 30% payout by FY2030. The company's balance sheet remains strong, with a net cash position of ₹2,941.6 crore, providing ample liquidity for future growth and strategic initiatives.

Looking ahead, Polycab remains optimistic about its growth trajectory. Management expects the second half of the year to be strong, with execution picking up pace post-monsoon. The company is also making significant strides in specialized areas, with its EHV plant expected to be commissioned by the end of next calendar year, contributing to sales from FY2028. Additionally, the special purpose cables (SPC) vertical, catering to defense, automobiles, and railways, is poised for faster growth. Polycab's disciplined execution, strategic investments, and focus on high-margin products position it well to capitalize on India's robust economic environment and navigate global headwinds, ensuring sustained growth and value creation for its stakeholders.