Polycab clocks its sharpest single-year market share gain; what powered the performance

Cable and wires player Polycab India logged its sharpest single-year market share gain in recent history during the last fiscal.  Polycab India's organised Wires and Cables market share rose 300-400 bps yoy to 30-31% against 26-27% in FY25. The growth in market share came on the back an 18% domestic volume growth against an industry growth of 11%. 

The stock zoomed 33% in FY26 helped by the company's financial performance such as 22.4% rise in net profit CAGR of two years and revenue CAGR of 26.3% during the same period. 

FMEG, not a drag anymore

The FMEG business has now remained profitable for five straight quarters, marking a sharp turnaround from the losses seen earlier. Segment margins improved to 2.7 per cent, compared with a loss of Rs 389 million in FY25. 

Meanwhile, the EPC business is witnessing a re-rating as rising demand in the wires and cables (W&C) market boosts order inflows. The order book expanded sharply to nearly Rs 11300 crore, up from around Rs 6200 crore at the end of FY25, driven largely by BharatNet Phase III contracts worth about Rs 8000 crore across Karnataka, Goa, Bihar and Tamil Nadu. While FY26 revenue growth was affected by project execution timelines, management remains focused on using EPC as a forward-integration platform to drive core W&C sales. The company aims to maintain stable high-single-digit EBIT margins by pursuing a disciplined and selective bidding strategy.

FY27 watchpoints

The brokerage says export recovery cadence, FMEG margin progression towards guided range, and W&C margin resilience are the key things to track in Fy27. "With Rs 6000- Rs 8000 crore capex queued under Spring and EHV scaling, the runway stays long. We don’t see any execution challenges for Polycab."

 Polycab Q4 earnings 

The company reported a consolidated revenue of Rs 8,865 crore in Q4, rising 27% year-on-year compared to the same period from the previous year. Consolidated EBITDA rose 13.3 per cent to Rs 1,160 crore, while adjusted net profit rose 6.3 per cent Y-o-Y to Rs 770 crore.
 
Polycab’s earnings were mainly led by strong performance in cables and wire (C&W) segment and a sustained execution in the FMEG (fast moving electrical goods) business.
 
In FY26, the company clocked its best annual performance to date. Revenue surged by 29% year-on-year, reaching Rs 28,884 crore, while EBITDA climbed 35% to Rs 4,006 crore. Profit after tax rose 32% to Rs 2,708 crore, with net profit margins improving to 9.4%.

The board also approved a recommendation of 470% dividend for FY26, which means Rs 47 dividend for every share with a face value of Rs 10.