Polycab gets Rs 327-crore I-T demand notice; stock in focus today 

Shares of Polycab are in focus today after the income tax department raised a demand of Rs 327.45 crore on the cables and wires firm. Polycab stock delivered multibagger returns of 170% in three years and 513% in five years. 

The FMEG stock closed 3.09% lower at Rs 8283.95 on Wednesday against the previous close of Rs 8548.40. 

Total 0.14 lakh shares of the firm changed hands amounting to a turnover of Rs 11.28 crore. Market cap of the firm stood at Rs 1.24 lakh cror. 

The company said it has initiated the process for filing application for rectification before the jurisdictional Assessing Officer.

"The Income Tax Authority, vide assessment order passed under Section 143(3) of the Income Tax Act, 1961 (‘the Act’), has made certain disallowances and additions aggregating to Rs. 41.87 crores. Pursuant to the said order, a demand of Rs. 327.45 Crores has been raised vide notice of demand issued under section 156 of the Act,"  said Polycab. "The Company, in consultation with its tax advisors, is of the opinion that the demand raised is higher than the additions made in the assessment order due to certain computational /clerical errors, which are rectifiable under section 154 of the Act. Accordingly, the Company has initiated the process for filing application for rectification before the jurisdictional Assessing Officer," added Polycab. 

Net profit for the December 2025 quarter rose 35% to Rs 620 crore against Rs 460 crore in the corresponding quarter of the previous fiscal. Revenue in the last quarter rose 46% to Rs 7640 crore from Rs 5230 last year. Operating EBITDA climbed 34.17% to Rs 966 crore against Rs 720 crore on  a year-over-year basis. However, PAT margins fell to 12.70% from 13.80% a year ago.

Polycab India Limited is the country's largest manufacturer of wires and cables. The company's business operations span across India through 23 manufacturing facilities, 15 plus offices and 25 plus warehouses.