Polycab India: Morgan Stanley raises price target past Rs 10,000 mark; here's why 

Shares of market leader Polycab India Ltd have received a price target upgrade from global brokerage Morgan Stanley. The cables and wires industry stock, which has risen 21% in 2026 is set to hit a price target of Rs 10,545 in a year, a 21% hike in price target from the earlier Rs 8707. The fresh target amounts to a 13.5% upside against the last close of Rs 9,289.

While maintaining an overweight call, the brokerage said on the consumer-facing side, the FMEG  business has started to deliver- while adding that it will need monitoring, a caveat worth noting for a segment that has been inconsistent in the past.

Morgan Stanley forecasted a 20% earnings CAGR over FY26-29 for the FMEG market leader.

The firm logged a decent earnings growth and expects domestic cables and wires volumes to improve over FY27-28. The brokerage's view of the competitive position is unambiguous. It said Polycab has the strongest C&W franchise in India, with an improving trend expected in both domestic volumes and exports.

In Q1, Polycab India reported a robust performance supported by strong demand across its core business segments. Consolidated revenue from operations for the quarter ended June 30, 2026, rose 39% year-on-year to Rs 8,209.73 crore, compared with Rs 5,905.98 crore in the corresponding quarter of FY26. On a sequential basis, however, revenue declined 7.39% from the March quarter.

Total income rose 38.90% year-on-year to Rs 8,314.65 crore from Rs 5,985.92 crore a year earlier. Compared with the previous quarter, total income declined 6.84%. Other income during the quarter stood at Rs 104.92 crore.

Consolidated profit after tax (PAT) climbed 32.85% year-on-year to Rs 796.65 crore against Rs 599.70 crore in Q1 FY26. On a quarter-on-quarter basis, PAT increased 1.41%.

Diluted earnings per share (EPS) also improved, rising to Rs 51.94 from Rs 39.21 in the year-ago quarter, reflecting the company's strong earnings growth during the period.