Polycab reported a strong first quarter with revenue of ₹5,906 Cr, up 26% YoY. Profit after tax jumped 49% to ₹599.7 Cr. Operating profit (EBITDA) rose 47% to ₹857 Cr, with margin improving to 14.5%. The company ended the quarter with ₹3,116 Cr in cash, return on capital at 32.1%, and working capital days at 43, showing strong financial health.
Wires & Cables: Main Growth Driver
The wires and cables segment remained the company’s biggest business, with ₹5,131 Cr revenue (up 31% YoY). Domestic sales rose 32% and exports grew 24%. Cables grew faster than wires. The segment’s profit margin improved by ~200 basis points to 14.7%, helped by better product mix and scale.
FMEG Grows on Solar Push, EPC Faces Delays
FMEG revenue grew 18% YoY to ₹446 Cr, driven by strong demand for solar products, which doubled and became the largest part of the segment. Other categories like switchgears and conduit pipes also did well, while fan sales dropped due to early monsoon. FMEG’s EBIT margin turned positive to 2.1%, up from a loss last year.
The EPC segment saw weak performance with revenue falling 19% to ₹347 Cr due to slow RDSS project execution. Order book stands at ₹10,000 Cr, including ₹8,000 Cr for the Bharat Net project.
Future Plans: New Cable Plant and Export Push
Polycab plans to grow its wires & cables business at 15–21% annually and is investing ₹600–700 Cr in a new aluminium high-voltage cable plant, set to start by FY26-end. Export share is expected to double from 5% to over 10% of total revenue by FY30. FMEG will focus on solar, switches, and lighting but avoid adding new categories.
Capex and Dividend Strategy for Long Term
Over FY26–FY30, the company will spend ₹6,000–8,000 Cr in capex, with over 90% going into wires & cables. It expects strong asset returns (4x–5x). By FY30, Polycab aims for 11–13.3% EBITDA margin in W&C and 8–10% in FMEG. The dividend payout ratio will also go up to over 30%, from 26.5% now.