Revenue from operations rose 17.8% YoY to Rs 6,477.21 crore, compared with Rs 5,498.42 crore a year ago. On a sequential basis, profit after tax (PAT) grew 15.5% from Rs 599.69 crore in the June quarter. Consolidated EBITDA for Q2FY26 came in at Rs 1,020.7 crore, up 62% YoY, supported by stronger margins in the wires and cables business and a one-off gain in the EPC segment, with EBITDA margins improving 130 basis points sequentially to 15.8%.
What should you do?
JM Financial maintains a “Buy” rating with a target of Rs 8,900. The brokerage stated that Polycab continues to make steady progress in line with its FY30 strategic guidance for C&W and FMEG segments. Growth in the first two quarters since the launch of its projects has been ahead of guidance, while exports rose 25% YoY in H1FY26, keeping the company on track to achieve over 10% contribution from exports. In the FMEG segment, growth is being driven by robust performance in solar products, though fan sales remain sluggish due to macroeconomic weakness. JM Financial noted that while the FMEG EBITDA margin target of 8-10% by FY30 still appears distant, management remains confident of achieving it.
Nuvama has reaffirmed its “Buy” rating with a target of Rs 9,070. The brokerage highlighted Q2FY26 revenue, EBITDA, and adjusted PAT growth of 18%, 62%, and 51% YoY, respectively. The C&W segment recorded 21% YoY revenue growth with high-teens volume growth, and EBIT margins expanded 280 basis points to 15.1%. The FMEG segment reported 48% YoY growth with EBIT margins of 0.5%. Nuvama noted that demand momentum in both domestic and export markets remains robust, with favourable pricing conditions, and expects Polycab to continue outperforming the industry. The brokerage projects revenue, EBITDA, and PAT CAGR of 19%, 21%, and 21% over FY25-28E, valuing the stock at 40 times December 2026 earnings.
ICICI Securities has a “Hold” rating on Polycab India with a target of Rs 7,500. The brokerage highlighted that the core wires and cables (C&W) business delivered strong 19.3% YoY growth, driven by high-teens volume expansion and an improved product mix. The segment showed healthy traction across both institutional and retail channels, supported by continued government-led capex and private sector investments. Margins expanded 268 basis points YoY to 15.1%, aided by operating leverage and a higher share of premium wires. ICICI Securities noted that the company’s consistent market share gains reflect robust execution and strong channel relationships.At about 10:45 am, shares of the company were trading at Rs 7,658, higher by 3% from the last close on the NSE. Polycab India shares have risen over 40% in the last 6 months.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
