Profit booking in Polycab shares after Q1 earnings: Brokerages share price targets, outlook

Shares of Polycab India slipped over 3% today despite after the FMEG firm reported its Q1 earnings. Polycab India stock fell 3.5% to Rs 8888 in early deals against the previous close of Rs 9216.10. Market cap of firm slipped to Rs 1.35 lakh crore. 

Brokerage Nuvama said Polycab reported a decent Q1FY27 with revenue/EBITDA/PAT growth of 39%/32%/32% YoY (2%/4%/8% ahead of its estimate). The Q1 show was led by stronger-than-expected performance in FMEG. Working capital improvement was largely improved by higher payables.

"We are marginally raising FY27–28E EPS by 4% each to reflect Q1 performance and outlook. We value Polycab at 40x Jun-28E EPS, yielding a TP of Rs 10,510 (Mar-27E targt price of Rs 9,740 earlier); maintain ‘BUY’. At CMP, the stock trades at 36.5x FY28E EPS," said Nuvama. 

Global brokerage Jefferies has a Buy call on Polycanb with a target price of Rs 11,100. The brokerage said despite Middle East conflict in June 2026-Q, cables and wires/FMEG sales rose by 39%/71%YoY. 

Post 21% rally in on month , stock trades at 42x/35x FY27/28e vs 37x historical five year average.

HSBC has a Buy call on Polycab with a target price of Rs 10,160. Realisation-led wires and cables and strong FMEG performance drove Q1 earnings beat. Strong demand, geographic expansion and FMEG scale up to drive 21% EPS CAGR over FY26-29e, said HSBC adding that Polycab trades at a FY28e PE of 35 times. 

Key downside risks to the assumptions of the brokerage are sharp volatility in commodity prices, copper & aluminum. 

In Q1, revenue increased 39% on a year-on-year basis to Rs 8,209 crore against a revenue of Rs 5,906 crore during the same quarter last year.

The company's earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) rose 32.5% on a year-on-year basis to Rs 1,136 crore. EBITDA margin in Q1 narrowed by 70 basis points on a year-on-year basis to 13.8%. 

Wires and cables business revenue rose 38% on a year-on-year basis to Rs 7,202 crore, while its segment EBIT stood at Rs 959 crore from Rs 756 crore last year.