Polycab India Q1 FY27 Results (NSE: POLYCAB)
Signal: Growth reaccelerated
The read
Polycab delivered another strong revenue quarter (+39% YoY) but gross margin contracted 302 bps as raw material costs grew faster, leading to a 68 bps EBITDA margin decline. Profit growth of 33% was supported by higher other income and a lower tax rate. FMEG turned in exceptional profit growth from a low base, while the core Wires & Cables business maintained volumes but faced input cost headwinds. The QoQ revenue dip is seasonal. Capacity investment continues (assets +28% YoY), but near-term margin pressure from input inflation is a key watch item.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹8,209.73 Cr | 39.0% | -7.4% |
| Net profit | ₹796.65 Cr | 32.8% | |
| EPS | ₹52.09 | ||
| EBIT margin | 13.84% |
P&L walk
Revenue grew 39% YoY but gross margin compressed 302 bps as material costs rose faster; EBITDA margin fell 68 bps despite operating leverage; PAT growth aided by other income (+31%) and lower tax rate (24.7% vs 25.1%).
Segments
FMEG segment profit surged 535% YoY to ₹606 mn (from ₹95 mn) driven by 49% revenue growth; Wires & Cables profit grew 25% to ₹9,594 mn but margin compressed; EPC profit rose 26% to ₹338 mn.
Key positives
- Revenue grew 39% YoY to ₹82,097 mn, the highest ever Q1.
- FMEG segment profit surged 535% YoY to ₹606 mn (from ₹95 mn).
- PAT grew 33% YoY to ₹7,967 mn, aided by other income and lower tax.
- Employee cost grew only 19% YoY vs revenue +39%, providing operating leverage.
- Net debt negligible (D/E 0.02) and ROCE 33%+ (from fundamentals).
Key concerns
- Gross margin contracted 302 bps YoY to 23.85% as material costs rose 45% vs revenue 39%.
- EBITDA margin fell 68 bps YoY to 13.84%.
- QoQ revenue declined 7.4% (seasonal; Q4 always high).
- Uncertainty from new EPR obligations for non-ferrous scrap (note iii).
Research and educational content only. Not investment advice.