Polycab India: Q4 revenue, margins beat pushes FMEG stock to record high; should you buy?

Shares of Polycab India hit a record high on Thursday after the fast-moving electrical goods (FMEG) firm reported its Q4 earnings. Revenue and margins beats street estimates, which led to positive sentiment around the stock in today's trading session. Announcement of Rs 47 as dividend also pushed the stock higher. 

Polycab India stock zoomed 6.78% to a record high of Rs 8,988 today against the previous close of Rs 8417.75. Market cap of the FMEG firm rose to Rs 1.35 lakh crore. Total 1.27 lakh shares of the firm changed hands amounting to a turnover of Rs 112.23 crore.

The multibagger stock has gained 170% in the last three years and 513% in five years. Polycab India has a one-year beta of 1.2, indicating high volatility during the period.

Polycab India shares are trading higher than the 5 day, 10 day, 20 day, 50 day, 100 day and 200 day moving averages.

Polycab: Buy, sell or hold 

Nuvama raised its EPS estimates estimates for FY27/FY28 by 3%/5% on account of
higher revenue growth in cables and wires (C&W) business and slightly better margins in FMEG. The brokerage raised its price target to Rs 9,800 (earlier Rs 9,350) and maintained its buy call. 

The management of the firm guided for a sustainable margin in the range of 11% to 13% in the long term. It guided the company’s growth to be 1.5 times of industry growth and exports are expected to scale from 5% of revenues to 10% by FY30. Capacity utilisation remains at 75%, with aggressive capex ensuring no bottlenecks and supporting growth. 

The brokerage expects a CAGR of 19% in Polycab’s revenue/EBITDA each and 18% in profit afetr tax (PAT) over FY26-28. "We estimate operating profit margins to range around 13.5-14.0% in FY27/28 (average 13.5%)," said Nuvama. 

Brokerage Motilal Oswal assigned an upside of 16% to the FMEG stock post Q4 earnings. The fresh target is Rs 9800 against the previous close of Rs 8416. 

Polycab’s 4QFY26 operating performance came above Motilal's estimates led by better-than-estimated revenue and margin in FMEG, while cable and wire margin was in line with the brokerages estimates. 

"There have been several near-term challenges due to external factors; however, the demand outlook remains strong for the next 2-3 years. Its continued proactive capex ensures no capacity constraints and positions it well to capture demand recovery and maintain strong growth," said Motilal. 

ICICI Securities assigned an 'Add' call, raising its target price to Rs 8,950. 
 
The brokerage believes the war-related disruption is transitory, and the company remains well positioned to benefit from structural demand tailwinds in data centre, defence, infra-spend, and real estate over the medium-term.
 
The brokerage welcomed Polycab’s market share gain during FY26, with organised domestic C&W market share improving to 30-31 per cent from 26–27 per cent in FY25.
 
“We model Polycab to report revenue/PAT CAGR of 19.9 per cent/20.6 per cent over FY25-28, and maintain RoCE above 20 per cent during the period. Our revised target price implies P/E valuation of 35x FY28E EPS,” ICICI Securities said.

JM Financial has a Buy call on the stock with a share price target of Rs 9,700

The brokerage raised its FY27E/28 EPS estimates by 4-5 per cent. It hiked its target price to Rs 9,700, valuing the stock at 42 times March, 2028 EPS estimates. 
 
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 clcoked 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.