Polycab Q4 FY26 results: Revenue jumps 27%, stock up 6%

Stock jumps after earnings beat

Polycab India Limited shares rallied close to 6% on Thursday after the company reported a strong set of Q4 FY26 earnings. In morning trade, the stock was quoted at Rs 8,896.50, up 5.72%. Another update in the same session put the stock around Rs 8,938.70, reflecting the near-6% move highlighted by the market.

The surge followed record quarterly revenue and broad-based growth led by the company’s core cables and wires business and sustained momentum in its fast-moving electrical goods portfolio. The results also triggered upgrades to target prices from brokerages, led by HSBC.

Q4 FY26: Record revenue, profit growth moderates

For Q4 FY26, Polycab reported its highest-ever consolidated revenue of Rs 8,860 crore, up 26.9% year-on-year. Consolidated EBITDA rose 13.3% to Rs 1,160 crore, while adjusted net profit increased 6.3% year-on-year to Rs 770 crore.

While the top line was strong, profitability growth lagged revenue, which became a key point in broker commentary. The company also reported year-on-year contraction in consolidated gross margin, EBITDA margin and PAT margin.

Segment performance shows where growth came from

Management attributed performance primarily to strong growth in cables and wires (C&W), along with continued execution in the FMEG segment. Segment numbers showed a clear split between high growth in C&W and FMEG, and a decline in EPC and others.

C&W remained the main earnings engine, but margins in the segment softened, indicating pressure from costs and mix. FMEG delivered faster growth off a smaller base, with a sharp improvement in EBIT.

Cables and wires: Growth strong, margins contract

Revenue from the C&W segment rose around 29% year-on-year to Rs 7,760 crore. EBIT increased nearly 12% to around Rs 1,020 crore. However, the segment’s EBITDA margin contracted by around 2 percentage points to 13%.

The mix of strong revenue growth and margin compression suggests that pricing, product mix and input costs played a role in limiting operating leverage during the quarter. Broker commentary also described the quarter as being driven by realisations rather than volumes.

FMEG: High growth, sharp EBIT rebound

The FMEG segment reported revenue growth of nearly 39% year-on-year to Rs 660 crore. EBIT surged around 15 times year-on-year to Rs 29.2 crore, while margins expanded by about 4 percentage points to around 4%.

The improvement in profitability in FMEG stood out because it came alongside rapid revenue growth. Brokerages tracking the stock flagged premiumisation and scale as factors that could support profitability improvement in the segment over time.

EPC and others: Decline offsets some momentum

Revenue from the EPC and others segment declined around 9% year-on-year to Rs 450 crore. The divergence across segments underscores why investor attention remained focused on C&W and FMEG, which drove most of the quarter’s consolidated growth.

Consolidated margins: Pressure visible in basis points

At the consolidated level, Polycab reported margin contraction across key measures. Gross margin, EBITDA margin and PAT margin fell by 205 basis points, 158 basis points and 168 basis points year-on-year, respectively.

Broker commentary referenced “mixed product mix impacting margin,” alongside price hikes and cost pressures. The company also faced near-term challenges referenced in market coverage, including geopolitical issues, demand softness in March, raw material volatility and channel destocking.

HSBC raises target to Rs 9,500; keeps Buy

Following the results, HSBC maintained its “Buy” rating and raised its target price to Rs 9,500 per share from Rs 8,500 per share. HSBC said the company delivered strong Q4 FY26 revenue growth led by the wires and cables and FMEG segments.

HSBC added that the quarter saw “realisation-led growth with strong price hikes but mixed product mix impacting margin.” It also pointed to market share gains and distribution expansion as positives for the longer-term outlook, and cited robust domestic demand and the capex cycle as supports for medium-term earnings visibility. HSBC also stated an expectation of around 20% EPS CAGR over FY26-29, driven by execution and premiumisation.

Other brokerages: Targets also move higher

Beyond HSBC, market coverage indicated other brokerage actions after the Q4 FY26 print. Motilal Oswal Financial Services and ICICI Securities raised their target prices, with expectations of up to Rs 9,800 over the next year mentioned in analyst commentary.

ICICI Securities maintained an “Add” rating and raised its target price to Rs 8,950. It described war-related disruption as transitory and pointed to structural demand tailwinds in data centres, defence, infrastructure spending and real estate. JM Financial raised its target to Rs 9,700 and increased its FY27E and FY28 EPS estimates by 4-5%.

Market share, working capital, and pricing actions in focus

Broker commentary highlighted that Polycab’s organised domestic C&W market share improved to around 30%-31% in FY26 from 26%-27% in FY25. Distribution expansion, investments in manufacturing scale and brand spending were cited as factors supporting competitive positioning.

Working capital also drew attention, with an update indicating it improved to 24 days from 44 days, supported by higher payment days due to increased use of letters of credit for raw material purchases. Management commentary in the same coverage suggested working capital could normalise to 45-50 days. The company also took price hikes of around 18%-19% during the quarter to offset input cost inflation.

Key numbers at a glance

What investors are tracking next

The quarter reinforced Polycab’s ability to deliver strong revenue growth, while also highlighting sensitivity of margins to mix, costs and the nature of growth. With multiple brokerages raising targets and reiterating positive medium-term demand drivers, investor focus is likely to remain on whether growth shifts from realisations toward stronger volume expansion, and how margins behave after recent price hikes.

Analyst positioning also remains active. Coverage referenced 34 analysts tracking the stock, with 25 “Buy” ratings, 7 “Hold” ratings and 2 “Sell” ratings.