Polycab Shares Rise 6% Following Strong Q4 Results, HSBC Raises Target Price to Rs 9,500

Polycab India Limited Shares Surge 6% on Strong Q4 Earnings

Polycab India Limited's shares jumped nearly 6% on Thursday after the company reported its strongest-ever fourth-quarter earnings, prompting brokerage HSBC Holdings plc to raise its price target on the stock.

The stock was trading at Rs 8,896.50, up 5.72% in morning trade. This positive momentum was a direct result of the company's impressive performance, which was driven by strong growth in its cables and wires (C&W) business and sustained momentum in the fast-moving electrical goods (FMEG) segment.

For the fourth quarter of FY26, Polycab posted its highest-ever consolidated revenue at Rs 8,860 crore, marking a 26.9% year-on-year growth. Consolidated EBITDA rose 13.3% to Rs 1,160 crore, while adjusted net profit increased 6.3% year-on-year to Rs 770 crore.

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Revenue Breakdown by Segment

The company's C&W segment saw a significant increase in revenue, climbing around 29% year-on-year to Rs 7,760 crore. However, EBITDA margin contracted by around 2 percentage points to 13%. On the other hand, the FMEG segment delivered robust growth, with revenue jumping nearly 39% year-on-year to Rs 660 crore. EBIT for the segment surged around 15 times year-on-year to Rs 29.2 crore, while margins expanded by 4 percentage points to about 4%.

Despite these positive trends, revenue from the EPC and others segment declined around 9% year-on-year to Rs 450 crore.

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At the consolidated level, gross margin, EBITDA margin, and PAT margin contracted by 205 basis points, 158 basis points, and 168 basis points year-on-year, respectively.

Following the results, HSBC maintained its "Buy" call and raised its target price "to Rs 9,500/share from Rs 8,500/share." The brokerage noted that the company delivers strong Q4FY26 revenue growth led by W&C & FMEG segments. It also highlighted that the quarter saw realization-led growth with strong price hikes but mixed product mix impacting margin.

HSBC added that market share gains and distribution expansion strengthen long-term growth outlook and that robust domestic demand and capex cycle support medium-term earnings visibility. The brokerage further noted that strong execution and premiumisation are expected to drive around 20% EPS CAGR over FY26-29.