ct22_Polycab
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MAIL PIC DCV

Target: ₹7,320

CMP: ₹5,735

Polycab India’s consolidated sales rose 25 per cent y-o-y to the highest ever level of ₹6,990 crore, above our/consensus estimate by 5 per cent each. Wires & Cables segment grew 22 per cent y-o-y, led by healthy demand momentum across key sectors, while FMEG sales grew 33 per cent y-o-y due to growth across all product categories. Gross margin rose 20bps YoY to 25.5 per cent. EBITDA margin rose 110bps y-o-y to 14.7 per cent (above CentE of 12.3 per cent) due to operating leverage, turnaround in FMEG and higher EPC margin (on a low base).

PAT grew 33 per cent y-o-y to ₹730 crore and was much above our/consensus estimate of ₹550 crore/₹620 crore due to a beat on topline and operating margin.

By FY30, Polycab targets: W&C growth at 1.5x of industry (implying 15-20 per cent CAGR) with 11-13 per cent EBIT margin and >10% exports share; FMEG growth at 1.5-2x of industry with 8-10 per cent EBIT margin and ₹6,000-8,000 crore capex infusion having 4x-5x asset turns potential. Ramp-up in exports and turnaround in FMEG profitability will aid in overall margin expansion.

We increase our earnings estimates for FY26E/FY27E by a 4-6 per cent range. Retain Buy rating with a revised target of ₹7,320 based on 40x FY27E EPS.

Published on May 8, 2025