Polycab Q4FY26 results: targets raised up to ₹9,800

Why Polycab is back in focus

Polycab shares are in focus after the company posted strong Q4FY26 results, prompting multiple brokerages to raise target prices. Motilal Oswal Financial Services (MOFSL) and ICICI Securities cited a firm demand outlook, market share gains, and a sizeable capex pipeline as key supports. Analysts cited upside of up to 16% based on revised estimates and valuations mentioned in their notes. While the quarter showed margin pressure in parts of the business, the Street’s attention has stayed on the scale of growth in the core cables and wires franchise and the improving profitability in fast moving electrical goods (FMEG).

What brokerages changed after the Q4FY26 print

MOFSL and ICICI Securities raised their share price targets and said the stock could reach up to ₹9,800 over the next year. ICICI Securities also reiterated that disruptions linked to the war-related situation are transitory, in its view. JM Financial raised its target price to ₹9,700 after increasing its FY27E and FY28 EPS estimates by 4-5%. Separately, Jefferies had a ‘Buy’ call with a target price of ₹7,150 in another note referenced in the provided material.

Q4FY26 headline numbers: revenue, EBITDA, profit

Polycab reported its highest-ever consolidated revenue of ₹8,860 crore in Q4FY26, up 26.9% year-on-year. Consolidated EBITDA rose 13.3% year-on-year to ₹1,160 crore. Adjusted net profit increased 6.3% year-on-year to ₹770 crore. The company attributed earnings strength mainly to the cables and wires segment and sustained execution in the FMEG business.

Segment performance: Cables and Wires vs FMEG

The cables and wires (C&W) segment remained the largest contributor in the quarter. C&W revenue increased about 29% year-on-year to ₹7,760 crore, while EBIT rose about 12% year-on-year to ₹1,020 crore. The C&W EBITDA margin was reported at 13%, around 2 percentage points lower year-on-year.

FMEG continued to show strong growth off a smaller base. Segment revenue rose about 39% year-on-year to ₹660 crore. EBIT increased 15 times year-on-year to ₹29.2 crore, with margin expansion of about 4 percentage points to around 4%.

What management said on margins and near-term challenges

Management said Q4FY26 margins were hit by multiple factors. These included a higher institutional mix, a weaker export mix due to Middle East disruption, and softer operating leverage linked to weak demand in March 2026. Despite these pressures, MOFSL said the demand outlook remains strong for the next 2-3 years, even as it flagged near-term external challenges.

Capex guidance and Project Spring plan

Polycab maintained annual capex guidance of ₹1,200-1,600 crore. The company also said it is confident of executing ₹6,000-8,000 crore of capex over the next five years under Project Spring. MOFSL highlighted that proactive capex reduces the risk of capacity constraints and positions the company to capture demand recovery.

Key figures at a glance

Targets, valuations, and what brokers are modeling

MOFSL said it estimates revenue and EBITDA CAGR of 19% each and net profit CAGR of around 18% over FY26-28. It also estimates operating profit margin to range around 13.5-14.0% in FY27 and FY28 (average around 13.5%). MOFSL noted it increased its EPS estimates for FY27 and FY28 by about 3% and 5% due to higher C&W revenue growth and slightly better FMEG margins. It also stated the stock was trading at 42x and 34x FY27 and FY28 EPS estimates, and that it values Polycab at 40x FY28E EPS.

ICICI Securities raised its target price to ₹8,950 and said its revised target implies a P/E valuation of 35x FY28E EPS. ICICI Securities said it models revenue and PAT CAGR of 19.9% and 20.6% over FY25-28, while maintaining RoCE above 20% in that period.

JM Financial raised its target price to ₹9,700, valuing the stock at 42x March 2028 EPS estimates.

Market share gains and medium-term demand drivers cited

ICICI Securities said Polycab gained share in FY26, with organised domestic C&W market share improving to 30-31% from 26-27% in FY25. It also pointed to structural demand tailwinds across data centres, defence, infrastructure spending, and real estate.

Separately, the supplied material also referenced an earlier stock move, noting an intra-day high of ₹8,132.50 on February 24, 2026. The same set of notes also discussed strong Q3FY26 execution, including consolidated revenue growth of 46% year-on-year, driven by the wires and cables segment.

Market impact: what the Q4FY26 print changes

The immediate market impact from the Q4FY26 print, as reflected in the provided notes, is the reset in broker targets and earnings assumptions. Q4FY26 growth was led by C&W volumes and strong segment revenue growth, while margins faced headwinds from mix and demand softness in March 2026. The combination of capex guidance of ₹1,200-1,600 crore annually and the five-year Project Spring plan of ₹6,000-8,000 crore is central to the market’s debate on sustaining growth without capacity bottlenecks.

Analysis: why the Street is balancing growth and margins

The brokerage commentary in the material points to a consistent theme: strong top-line momentum and market share gains, alongside near-term margin noise. The Q4FY26 C&W EBITDA margin of 13% was lower by about 2 percentage points, even as segment revenue grew nearly 29% year-on-year. At the same time, FMEG showed a sharp jump in EBIT and improved margins to around 4%, which brokerages expect to strengthen through mix, premiumisation, and scale benefits over time.

Conclusion

Polycab’s Q4FY26 results reinforced its growth momentum, with record consolidated revenue and brokerages raising target prices to as high as ₹9,800. Management’s capex guidance and Project Spring investment plan remain key reference points for how the company aims to sustain capacity and execution. Investors will track how quickly margins normalise after the March 2026 softness and export mix disruption, and how market share trends in organised C&W evolve from the FY26 base cited by brokerages.