Polycab (POLYCAB) Q1 25/26 earnings summary

Executive summary

• Achieved highest-ever Q1 revenue and profitability, with revenue up 26% year-over-year to ₹59,060 million, continuing a four-year growth trajectory; sequential revenue declined 15%.

• EBITDA increased 47% year-over-year to ₹8,576 million, with margin expansion of 210 bps to 14.5%; sequential EBITDA declined 16%.

• PAT reached ₹5,997 million, up 49% year-over-year, with PAT margin at 10.2%; sequential PAT declined 18%.

• Wires and cables remain the primary growth engine, with strong domestic demand and favorable commodity prices.

• Strategic initiatives are yielding results, with the FMEG business posting its second consecutive profitable quarter.

Financial highlights

• Consolidated revenue grew 25.7% year-over-year to ₹59,059.76 million, with wires and cables leading growth.

• EBITDA rose 47% year-over-year, with a 210 bps margin improvement to 14.5%.

• PAT reached ₹5,996.96 million, up 49.3% year-over-year, with PAT margin at 10.2%.

• Net cash position at ₹31,160 million at period end; working capital cycle at 43 days.

• CapEx for the quarter was ₹4,139 million, in line with annual guidance.

Outlook and guidance

• CapEx guidance of ₹12-16 billion annually through FY30, focused on cables and wires.

• FMEG business targets 1.5-2X industry growth and 8-10% EBITDA margin by FY30.

• Long-term EBITDA margin guidance for cables and wires remains at 11-13%.

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

• No plans for international manufacturing plants in the near to mid-term.