Polycab Q4 FY26: Record FY26, Market Share Gains, And A Clear Project Spring Roadmap

Polycab ended FY26 with its highest ever quarterly and yearly performance, despite management acknowledging that demand sentiment weakened in March due to geopolitical volatility. Consolidated revenue for FY26 rose 29% year-on-year to INR 28,883.8 crore, EBITDA grew 35% to INR 4,005.7 crore, and profit after tax increased 32% to INR 2,708.4 crore. Q4 FY26 also delivered record results, with revenue of INR 8,864.5 crore up 27% YoY, EBITDA of INR 1,161.3 crore up 13% YoY, and PAT of INR 785.6 crore up 7% YoY.

The quarter matters because it shows two things at once. First, Polycab is still expanding faster than the broader market in its core Wires and Cables business. Second, the company is continuing to fund an aggressive capacity build-out and stronger brand investment while keeping a large net cash position.

FY26 performance in one view

Wires and Cables: scale-led growth with mix-driven margin movement

Wires and Cables remains the dominant driver, contributing roughly 87% of FY26 consolidated segment revenue. The segment reported FY26 revenue of INR 25,178.9 crore, up 33% YoY. Q4 FY26 revenue grew 30% YoY to INR 7,673.5 crore.

Management linked market share gains to execution under Project Spring. The presentation reported domestic organized Wires and Cables market share at 30-31% in FY26 versus 26-27% in FY25. It also highlighted that Polycab’s presence expanded to 94 countries in FY26, up from 84 in FY25.

However, the Q4 margin profile was influenced by mix. Management noted that exports are relatively margin accretive and that lower export contribution, higher institutional sales, and operating deleverage in March moderated margins. Export contribution in FY26 was 5.4% of revenue (versus 6.0% in FY25). In the concall, management said institutional mix was a couple of percentage points higher than the usual 90% channel and 10% institutional split.

The company also stated that price hikes of about 18-19% were taken cumulatively between January and March, while Wires and Cables volume growth in Q4 was low single digit.

FMEG: momentum builds, profitability improves

FMEG continued its growth run with FY26 revenue of INR 2,069.3 crore, up 25% YoY, and Q4 FY26 revenue of INR 691.8 crore, up 47% YoY. Profitability improved meaningfully as the segment delivered FY26 EBIT of INR 54.8 crore compared to an EBIT loss in FY25.

Management highlighted solar products as the standout performer, noting that they delivered nearly 2x YoY growth and became the largest category within the FMEG portfolio. The company also noted improving profitability despite higher investments in brand-building. This is visible in the full-year advertisement and sales promotion expense of INR 190.2 crore versus INR 120.9 crore in FY25.

The Project Spring trajectory for FMEG remains clear: management reiterated the long-term target of 8-10% EBITDA margins by FY30.

EPC: timing-led softness, margin expectation maintained

The EPC segment reported FY26 revenue of INR 1,666.5 crore, down 13% YoY, with Q4 FY26 revenue down 15% YoY. Management attributed the decline to project execution cycle timing and stated that the order book remains healthy.

While quarterly EBIT margin was 7.6%, the company reiterated that sustainable operating margin is expected to remain in the mid to high single digits over the mid to long term.

Project Spring and capital allocation: heavy investment with rising shareholder payout

Project Spring remains the central reference point in management commentary. The presentation reiterated the annual capex guidance of INR 1,200 to 1,600 crore, with FY26 capex landing at INR 1,479.9 crore. Management also stated that about 90% of capex is expected to go into Wires and Cables capacity expansion.

A key upcoming capex-led capability addition is EHV capacity. Management said commissioning is expected by the end of calendar year 2026, with revenue contribution expected from FY28 because the segment is tender-based.

Capital allocation is also increasingly shareholder-facing. The board proposed a dividend of INR 47 per share for FY26, taking payout ratio to 27.2%, with an objective of exceeding 30% by FY30.

Working capital and cash: strong balance sheet, but Q4 working capital improvement was temporary

Polycab ended March 2026 with a net cash position of INR 4,194.0 crore. Operating cash flow in FY26 was INR 3,810.7 crore versus INR 1,808.5 crore in FY25.

Working capital improved sharply in Q4, with management stating the cycle improved to 25 days primarily due to a temporary increase in payables from higher use of letters of credit for raw material procurement. They expect normalization back to a steady-state range of 45-50 days.

Takeaways

Polycab’s FY26 results show a company that is scaling its core Wires and Cables franchise, improving the economics of its FMEG portfolio, and investing heavily in capacity without stressing the balance sheet. Market share gains in domestic organized Wires and Cables and a higher net cash position reinforce execution strength.

At the same time, Q4 highlighted the sensitivity of margins to mix. Exports, institutional versus channel sales, and temporary demand sentiment swings can influence quarter-to-quarter outcomes. Management’s repeated anchoring to Project Spring targets, including capex, margins, export contribution, and dividend payout, provides the framework investors will likely use to track performance through FY27 and beyond.