Polycab (POLYCAB) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 consolidated revenue reached ₹46,980.3 million, up 21% year-over-year, marking the highest ever Q1 revenue, though down 16% sequentially from Q4 FY24.

• EBITDA for Q1 FY25 was ₹6,004 million, up 6% year-over-year, with margin at 12.4–12.8%, reflecting margin compression due to business mix changes.

• PAT stood at ₹4,016 million, nearly flat year-over-year, with margin at 8.5%, and sequential decline due to margin pressures.

• Domestic economy and core markets remained resilient, with strong manufacturing and services PMI, healthy credit growth, and record GST revenues.

• Highest ever first-quarter revenues were supported by strong EPC and FMEG business performance.

Financial highlights

• Revenue grew 21% year-on-year for Q1 FY25 to ₹46,980 million, led by wiring, EPC, and energy businesses.

• EBITDA margin contracted to 12.4–12.8% due to business mix shift.

• PAT margin compressed by ~190 bps year-over-year; PAT at ₹4,016 million.

• Net cash position improved to ₹16,384 million as of Q1 FY25.

• Exports revenue contributed 5.3% of consolidated revenue, down from 7.7% in Q4 FY24.

Outlook and guidance

• Expect improvement in sales and margins as commodity prices stabilize and channel inventory normalizes.

• Remain on track to achieve or exceed INR 20,000 crore revenue target by FY26; new midterm guidance to be released this year.

• International business expected to gradually recover and contribute 10% of top line by FY26.

• CapEx guidance maintained at INR 1,000–1,100 crore for FY25, with focus on capacity expansion.

• Annual sustainable operating margin for EPC business expected to be in high single digits over the mid- to long-term.