Polycab India Gains Bullish Attention from Prabhudas Lilladher, Target Set at Rs 10,282

Polycab India Sees Moderate Growth in Wires & Cables Segment in Q4FY26

The Wires & Cables (W&C) segment of Polycab India delivered moderate growth in Q4FY26, driven by strong cable demand and execution despite softer trade sentiment and Middle East disruptions. Domestic W&C revenue grew by 30.3% year-over-year (YoY), while exports grew by 17.8% during the quarter.

The segment's performance was characterized by cables outperforming wires, with institutional sales growing faster than channel sales. However, volume growth remained in low single digits due to temporary construction halts in North & West India, geopolitical disruptions, and softer secondary sales. The cumulative price hikes of 18-19% from January to March 2026 supported realizations.

The international business contributed 4.4% to consolidated revenue in Q4FY26. The EBIT margin for the W&C segment stood at 13.1%, impacted by lower export contribution, higher institutional mix, and operating deleverage. Notably, employee expenses declined by 5.2% YoY, primarily due to reduced incentive payouts.

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Revenue/EBITDA/PAT CAGR Expectations

The research firm expects revenue/EBITDA/PAT compound annual growth rate (CAGR) of 20.1%/20.6%/20.2% over FY26-28E. This is accompanied by an upward revision of FY27/FY28 earnings estimates by 3.2%/7.0%, factoring margin improvement and stronger sales growth.

Target Price and PE Ratio

Based on a sum-of-the-parts (SOTP) valuation approach, the target price for Polycab India has been set at INR10,282 (INR 9,611 earlier), implying a price-to-earnings (PE) ratio of 40x for FY28E.

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