Polycab Q4FY26: Broker targets raised to ₹9,800

What put Polycab in focus after Q4FY26

Polycab shares drew fresh attention after the company reported a strong March quarter (Q4FY26) and brokerages responded with higher target prices. Motilal Oswal Financial Services (MOFSL) and ICICI Securities raised their estimates, pointing to a healthy demand runway and visible market share gains. JM Financial also increased its target, citing upgrades to earnings projections. Collectively, the upgrades imply up to 16% upside over the next year, with the highest target at ₹9,800.

The commentary alongside results acknowledged near-term challenges from external disruptions, but broker notes still highlighted a multi-year demand outlook. A key support for the thesis is Polycab’s capacity planning, with management reiterating capex guidance for the year and outlining a larger five-year investment program.

Q4FY26 headline numbers: record revenue, steady profitability

Polycab reported its highest-ever consolidated revenue of ₹8,860 crore in Q4FY26, up 26.9% year-on-year. Consolidated EBITDA rose 13.3% to ₹1,160 crore for the quarter. Adjusted net profit increased 6.3% year-on-year to ₹770 crore.

Management said Q4FY26 margins were hit by multiple factors, including a higher institutional mix, a weaker export mix due to Middle East disruption, and softer operating leverage due to weak demand in March 2026. Even with these pressures, the company maintained its capex intent, which brokerages interpreted as supportive for medium-term growth and execution.

Segment performance: C&W leads scale, FMEG improves margins

In the Cables and Wires (C&W) segment, revenue rose about 29% year-on-year to ₹7,760 crore in Q4FY26. Segment EBIT increased around 12% year-on-year to ₹1,020 crore. The C&W EBITDA margin was reported 2 percentage points lower at 13%.

The Fast-Moving Electrical Goods (FMEG) segment showed faster growth off a smaller base. FMEG revenue jumped around 39% year-on-year to ₹660 crore, with EBIT up 15 times year-on-year to ₹29.2 crore. The segment’s margin expanded by about 4 percentage points to around 4%.

EPC and other revenue declined about 9% year-on-year to ₹450 crore, a weak spot in the quarterly mix.

Capex guidance and Project Spring: what management reiterated

Management maintained annual capex guidance of ₹1,200-1,600 crore. It also reiterated confidence in executing ₹6,000-8,000 crore of capex over the next five years under “Project Spring”.

MOFSL said Polycab’s proactive investment should reduce the risk of capacity constraints. The brokerage added that this positions the company to capture demand recovery and sustain growth when conditions normalise.

Broker takeaways: targets raised, ratings intact

MOFSL retained a Buy rating and raised its target price to ₹9,800. The brokerage expects revenue and EBITDA CAGR of 19% each and net profit CAGR of around 18% over FY26-28. It also expects operating profit margin to range around 13.5-14.0% in FY27/FY28 (average about 13.5%). MOFSL said it increased EPS estimates for FY27/FY28 by about 3% and 5% on higher C&W revenue growth and slightly better FMEG margins, while noting the stock trades at 42x/34x FY27/FY28 EPS estimates and is valued at 40x FY28E EPS in its framework.

ICICI Securities maintained an Add rating and raised its target price to ₹8,950. It said war-related disruption is transitory and expects Polycab to benefit from structural tailwinds across data centres, defence, infrastructure spending, and real estate over the medium term. ICICI Securities highlighted market share gains, with organised domestic C&W market share improving to 30-31% in FY26 from 26-27% in FY25. It models revenue and PAT CAGR of 19.9% and 20.6% over FY25-28 and expects RoCE to remain above 20% during the period, with its revised target implying a P/E valuation of 35x FY28E EPS.

JM Financial retained its Buy rating and raised its target to ₹9,700, after increasing FY27E/FY28 EPS estimates by 4-5%. It values the stock at 42x March 2028 EPS estimates.

Key numbers snapshot

Market context: how this compares with earlier FY26 quarters

The Q4FY26 print followed an already strong run through FY26. In Q3 FY26, revenue from operations was ₹7,636.1 crore (up 46% YoY and 18% QoQ), EBITDA was ₹966.1 crore (up 34% YoY), and PAT was ₹630.2 crore (up 35-36% YoY). For 9M FY26, revenue was ₹20,019.3 crore (up about 30% YoY), EBITDA was ₹2,844.4 crore (up about 47% YoY), and PAT was ₹1,922.8 crore (up about 47% YoY).

Management had also attributed Q3 margin compression to higher raw material costs, elevated advertising and sales promotion spends (about ₹910 crore versus about ₹370 crore YoY), and higher logistics and finance costs as the business scaled.

Market impact: what the raised targets signal

The immediate takeaway from the broker upgrades is that the Street is leaning on Polycab’s scale in C&W, improving FMEG profitability, and investment-led capacity expansion. The target range after Q4FY26 spans ₹8,950 (ICICI Securities) to ₹9,800 (MOFSL), with JM Financial at ₹9,700. Separately, one market snapshot in the provided material showed Polycab at ₹8,425, up ₹88 (1.06%), indicating the stock was already reacting positively around the period referenced.

At the same time, management’s margin commentary suggests the quarter carried mix-related and disruption-related pressures. Broker notes largely treated these as near-term factors, while emphasizing that capex planning could help protect delivery capability if demand remains firm.

Conclusion

Polycab’s Q4FY26 results combined record revenue with continued profitability, even as margins faced a tougher mix and external disruptions. Brokerages including MOFSL, ICICI Securities and JM Financial raised target prices, citing sustained demand drivers, market share gains in C&W, and management’s capex roadmap. The next key monitorables, based on management and broker commentary, remain execution on the stated ₹1,200-1,600 crore annual capex and progress against the ₹6,000-8,000 crore, five-year Project Spring plan.