Polycab (POLYCAB) Q2 25/26 earnings summary

Executive summary

• Achieved record Q2 and half-yearly revenue, with Q2 FY26 consolidated revenue at ₹64,772.11 million, up 18% YoY, and PAT at ₹6,930 million, marking a 56% YoY growth, driven by strong wires, cables, and FMEG performance.

• EBITDA grew 62% YoY to ₹10,207 million, with margin improvement to 15.8% due to stronger W&C margins and a one-off EPC gain.

• Leadership transition: Niyant Maru appointed as CFO and interim CEO, bringing over four decades of experience.

• Market capitalization has grown from INR 8,000 crore in FY 2019 to over INR 110,000 crore.

• Board approved unaudited financial results for Q2 and H1 FY26, with a clean review report from auditors.

Financial highlights

• H1 FY26 revenue at ₹1,23,832 million, up 21% YoY; H1 EBITDA at ₹18,784 million, up 55% YoY; H1 PAT at ₹12,927 million, up 53% YoY.

• Q2 EBITDA margin improved to 15.8%, up 430 bps YoY; PAT margin at 10.7%, up 260 bps YoY.

• Net cash from operations in H1 FY26 was ₹17,905 million; capex spends at ₹7,486 million.

• Net cash position at ₹29,416 million as of Q2 FY26; working capital cycle reduced to 31-33 days.

• Basic EPS for Q2 FY26 stood at ₹45.54, up from ₹29.25 in Q2 FY25.

Outlook and guidance

• Project Spring targets 1.5x-2x market growth in core W&C and FMEG segments by FY30, with annual capex planned at ₹12-16 billion.

• W&C EBITDA margin guidance at 11-13%; FMEG EBITDA at 8-10%; export contribution expected to exceed 10% by FY30.

• Dividend payout increased to 26.3%, aiming for >30% by FY30.

• Expectation of strong demand in H2, with inventory build-up to support anticipated growth.

• Board and auditors expressed confidence in the financial statements, with no material misstatements identified.