Polycab India Q1 FY27 Earnings Call — Analysis (NSE: POLYCAB)
Polycab Q1FY27 revenue surges 39% YoY to ₹8,210 Cr with highest-ever PAT of ₹797 Cr, but W&C volume growth moderates to low single digits on high base; FMEG jumps 71% and margins expand.
The take
Q1FY27 Revenue ₹8,209.73 Cr ( +39% YoY ) . New guidance — FY30 export share of revenue by fy30 >10% of overall topline . New story: FMEG turnaround and premiumisation .
Results
Consolidated revenue ₹8,210 Cr +39% YoY; EBITDA margin 13.8% (+70bps QoQ); PAT ₹796.7 Cr +33% YoY; W&C domestic volume growth low-to-mid single digits; FMEG revenue +71% YoY, EBIT margin 8%.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Revenue | ₹8,209.73 Cr | +39% | yoy · Q1FY27 |
| EBITDA margin | 13.8% | +70bps | sequential · Q1FY27 |
| Profit After Tax | ₹796.67 Cr | +33% | yoy · Q1FY27 |
| PAT margin | 9.7% | none · Q1FY27 · as reported | |
| Wires & Cables EBIT margin | 13.3% | none · Q1FY27 | |
| FMEG EBIT margin | 8.0% | none · Q1FY27 | |
| EPC Revenue | ₹307.7 Cr | -11% | yoy · Q1FY27 |
| EPC EBIT margin | 11.0% | none · Q1FY27 | |
| Net Cash | ₹3,990 Cr | point_in_time · point-in-time · as of Jun-26 | |
| Capital Expenditure | ₹320 Cr | none · Q1FY27 |
Guidance
Volume growth guided at 1.5x industry growth; W&C EBIT margin maintained at 11-13% medium-term; FMEG EBITDA margin target 8-10% by FY30; export to exceed 10% of revenue by 2030.
What management committed to
- Polycab's domestic Wires & Cables business will deliver topline growth at 1.5x of [the industry growth rate], sustained over the medium term. — 1.5x of market growth, medium term, ongoing
- Wires & Cables EBIT margin will remain in the 11% to 13% range over the medium-to-long term. — 11% to 13%, medium-to-long term
- FMEG business topline will grow at 1.5x to 2x of [the respective industry growth rate]. — 1.5x to 2x of industry growth, ongoing
- FMEG EBITDA margin will reach 8% to 10% by FY30. — 8% to 10%, FY30
- Export revenue will exceed 10% of [Polycab's] overall topline by 2030. — >10% of overall topline, FY30
- EPC business operating margins will remain in the high single-digit range over the medium-to-long term. — high single-digit, medium-to-long term
- Working capital cycle will normalise to [Polycab's] long-term operating range of 45 to 50 days after the temporary Q1FY27 improvement. — 45 to 50 days, next few quarters
- Bharat Net project will contribute revenue of INR 800 Cr to INR 1,000 Cr in FY27. — INR 800 Cr to INR 1,000 Cr, FY27
- RDSS project will contribute revenue of approximately INR 800 Cr in FY27. — ~INR 800 Cr, FY27
- U.S. exports will see a sizable pickup and overall exports will show a good uptick in [FY27] quarters. — FY27
Key themes
Resilient domestic demand, FMEG turnaround, export recovery optimism
How the narrative shifted
- FMEG turnaround and premiumisation: Management highlights FMEG's 10th consecutive quarter of outperformance, strong solar inverter growth, premium mix expansion driving margins, and progress towards FY30 margin target.
- Export diversification and recovery: Export decline due to West Asia disruption, but order book healthy; US distribution setup complete, recovery expected in FY27; long-term target >10% of revenue by 2030.
- T&D and renewable capex super-cycle: Management cites CEA projections of rising transmission capacity additions, robust transformer capacity expansion plans, and renewable generation targets driving sustained cable demand.
- Wires outperforming Cables this quarter: This quarter wires grew faster than cables, partly due to channel stocking dynamics from volatile copper prices; not seen as structural shift.
- Strong domestic channel and broad-based demand: Distribution network strength, 90% channel sales, and broad regional and sectoral demand underpin resilient topline, with tailwinds from real estate and government infra.
Operational commentary
- FMEG delivered 10th consecutive quarter of outperformance; solar remained primary growth engine (>2x YoY) driven by rooftop solar policies; premium mix rose to 25% of FMEG, supporting margins.
- Export order book healthy despite Q1 decline; US distribution setup complete with market representatives; recovery expected in FY27, with US mix ~50% of exports.
- Bharat Net execution underway; secured fibre for supply portion (2-3 years) eliminating exposure to high fibre prices; EPC order book (Bharat Net + RDSS) ~₹10,900 Cr, with ~₹800-1,000 Cr Bharat Net and ~₹800 Cr RDSS revenue expected in FY27.
- Premiumisation across FMEG categories: fans premium mix 33%, lighting 38%; all 6 categories outperformed industry growth.
- Domestic W&C broad-based: channel outperformed institutional; West led, followed by North, South, East; no single sector concentration.
- T&D outlook robust: CEA projects 20,000-21,000 ckm annual transmission addition over FY26-30 vs 15,000 ckm average in FY20-25; 2,000 ckm added in Apr-May FY27.
Analyst Q&A
Q. How to look at full year volume growth for Polycab given quarterly base effects?
We have guided 1.5x of market growth; quarter-on-quarter may not be a good indicator; over 10-12 months you will see a trend and we should deliver 1.5x.
Q. Does wires outperforming cables indicate market share gain? Can you quantify?
We have to wait for other results to become public; we typically do market share analysis over 10-12 months, not quarterly.
Q. How is channel stocking of wires and cables? Has it been suboptimal?
Stocking did not happen to expectation because raw material prices plummeted in June; 'below expectation' is a better way to put it.
Research and educational content only. Not investment advice.