Polycab Q4FY26: Broker targets raised to ₹9,800

Why Polycab is back in focus

Polycab India shares drew attention after the company reported a strong March quarter (Q4FY26) performance. Analysts highlighted robust demand visibility, market share gains, and an ongoing capacity expansion plan as key positives. Motilal Oswal Financial Services (MOFSL) and ICICI Securities raised their price targets following the results, indicating potential upside of up to 16% over the next year.

At the same time, brokerages also flagged near-term headwinds linked to external disruptions. The article cites export disruptions from the Middle East due to a war involving the US, Israel, and Iran. It also notes concerns around low volume growth, input cost pressure, and possible margin impact in what is typically the strongest quarter for cable and wire companies.

Q4FY26 results: record revenue and steady profitability

Polycab reported its highest-ever consolidated revenue at ₹8,860 crore, up 26.9% year-on-year. Consolidated EBITDA rose 13.3% to ₹1,160 crore, while adjusted net profit increased 6.3% to ₹770 crore.

The company’s earnings were driven by continued strength in its cables and wires (C&W) business and sustained execution in the FMEG (fast moving electrical goods) segment. The mix matters because C&W is the largest contributor to revenue, while FMEG is a faster-growing segment where margin and scale improvements are closely tracked by the Street.

Segment performance: C&W leads, FMEG accelerates

The C&W segment recorded revenue of ₹7,760 crore, up about 29% year-on-year. Segment EBIT was around ₹1,020 crore, up about 12% year-on-year, while the EBITDA margin was 2 percentage points lower at 13%.

The FMEG segment posted revenue of ₹660 crore, up around 39% year-on-year. Segment EBIT surged 15x year-on-year to ₹29.2 crore, with margin expansion of about 4 percentage points to ~4%.

These numbers reinforced the market’s view that Polycab is balancing growth with profitability, even as margins in key businesses can move quarter to quarter depending on volumes and cost conditions.

Q4FY26 key financial snapshot

MOFSL: Buy, target raised to ₹9,800

MOFSL raised its target price to ₹9,800 and maintained a Buy view. It projected a 19% CAGR in revenue and EBITDA each, and around 18% CAGR in net profit over FY26-28.

The brokerage estimated operating profit margin to be around 13.5%-14.0% in FY27/28 (average around 13.5%). It also stated it increased EPS estimates for FY27/FY28 by ~3%/5%, citing higher revenue growth in C&W and slightly better margins in FMEG.

MOFSL added that proactive capex should prevent capacity constraints and help Polycab capture demand recovery over the next few years, even with near-term challenges.

ICICI Securities: Add, target raised to ₹8,950

ICICI Securities raised its target price to ₹8,950 with an Add rating. It described war-related disruptions as transitory and said Polycab remains positioned to benefit from medium-term demand tailwinds in data centres, defence, infrastructure spending, and real estate.

A key driver cited was market share gain in organised domestic C&W. ICICI Securities noted Polycab’s market share improved to 30%-31% in FY26 from 26%-27% in FY25.

It modelled Polycab to deliver revenue and PAT CAGRs of 19.9% and 20.6% over FY25-28, while maintaining RoCE above 20% during the period. The revised target implies a valuation of 35x FY28E EPS.

JM Financial: target raised to ₹9,700 in one note; another kept at ₹9,000

JM Financial raised its share price target to ₹9,700, valuing the stock at 42x March 2028 EPS estimates, and increased FY27E/28 EPS estimates by 4%-5%.

The article also contains another JM Financial view where the brokerage kept the rating and target price unchanged at ₹9,000, while acknowledging weaker-than-expected business growth in March 2026 due to the same war-related impact. It said this weighed on volume growth in Q4FY26 and could pressure margins if Middle East tensions persist.

Near-term risks: exports, volumes, and margin pressure

The article notes that Polycab is facing export disruptions from the Middle East, described as the highest contributor to its export portfolio. In a separate ICICI Securities note cited, the Middle East is said to contribute 20%-22% of export revenue in 9MFY26.

JM Financial flagged that Q4 is usually the strongest quarter for cable and wire companies, and warned that volume growth could remain flat year-on-year in Q4FY26 if tensions persist. It also said negative operating leverage and export disruption could weigh on margins, and referred to a guided C&W EBITDA margin range of 12%-14% for Q4FY26, 240 basis points lower year-on-year (upper end of the range).

At the stock level, Polycab shares were quoted at ₹7,080, down 1.4% on the NSE, while the Nifty50 was up 0.07% at the time mentioned.

Brokerage targets mentioned in the article

FY25 milestone claim: revenue and profitability in crore terms

The article also quotes a company statement calling FY25 a landmark year, with revenues and profitability surpassing ₹22,000 crore and ₹2,000 crore, respectively (converted from ₹220 billion and ₹20 billion). It attributes the performance to growth across business segments.

Market impact and what investors tracked immediately

The immediate market response, based on the cited quote, was cautious despite the upbeat results and target upgrades. The stock was down on the day even as brokerages reiterated constructive medium-term views.

For investors, the key watch points from the article were the pace of export normalisation, volume recovery in cables and wires, and whether margin performance aligns with broker expectations amid input cost and operating leverage pressures.

Conclusion

Polycab’s Q4FY26 results delivered record consolidated revenue and solid segment execution, prompting MOFSL and ICICI Securities to raise targets up to ₹9,800. Brokerages remain constructive on medium-term demand and market share gains, while highlighting near-term uncertainty from Middle East export disruptions and potential margin pressure in C&W.