Polycab India Share Price Surges 6% Following Strong Fourth-Quarter Earnings

Polycab India Share Price Jumps Over 6% Following Strong Q4 and FY26 Performance

Polycab India's share price surged over 6% on Thursday, 7 May, after the electrical products manufacturer announced robust performance in the March quarter and the fiscal year ending 31 March 2026. The company's consolidated revenue for the quarter stood at ₹8,865 crore, representing a 27% year-on-year increase compared to the same period from the previous year.

Revenue Growth Driven by Wires and Cables Segment

The wires and cables (W&C) sector, which remains the company's main contributor, posted a 30% year-on-year increase during the quarter. Within this sector, cables outperformed wires, with institutional sales growing faster than channel sales. The fast-moving electrical goods (FMEG) sector also demonstrated impressive performance, with revenues increasing 47% year on year. Growth was widespread across different product categories, with solar products becoming a major contributor, achieving nearly double growth during the quarter.

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EBITDA Margins Remain Within Expected Range

Regarding margins, Polycab India stated that its EBITDA margins remained within the expected range of 12%–14%, although profitability was affected by an unfavourable product mix, with increased institutional sales, coupled with some operational deleverage. The company's EPC sector saw a decline, with revenues down 15% YoY, mainly due to timing differences in project execution cycles.

FY26 Performance

For FY26, the company achieved its best annual performance to date. Revenue surged by 29% year-on-year, reaching ₹28,884 crore, while EBITDA rose by 35% to ₹4,006 crore. Profit after tax increased by 32% to ₹2,708 crore, with net profit margins improving to 9.4%. The company's board has suggested a dividend of ₹47 per share for FY26.

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Improved Balance Sheet

Polycab also improved its balance sheet over the year, closing March with a net cash position of ₹4,190 crore, up from ₹2,460 crore the previous year. The firm stated that it has maintained its market share growth, driven by the implementation of its "Project Spring" initiative and ongoing demand strength in both domestic and international markets.

Brokerage Views

JM Financial and Nuvama Institutional Equities both praised Polycab's Q4 FY26 performance, with the company delivering a strong quarter and beating estimates. Both brokerages raised their FY27 and FY28 EPS estimates and maintained a "BUY" rating on the stock, with JM Financial revising its target price upward to ₹9,700 from ₹9,200, and Nuvama revising its target price to ₹9,740 from ₹9,420.

Technical Outlook

According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, the stock has rallied more than 6%, supported by strong trading volumes, and has crossed its February swing high of ₹8,700 to scale a fresh all-time high. The earlier resistance zone around ₹8,700 is now expected to act as a key support level.