Polycab (POLYCAB) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 revenue reached ₹52,261 million, up 20% YoY, with 9M FY25 revenue at a record ₹155,820.81 million, up 24% YoY, surpassing FY26 guidance two years ahead.

• Q3 FY25 PAT was ₹4,643.48 million, up 11% YoY, with 9M FY25 PAT at ₹13,112 million, up 5% YoY, marking record profitability.

• Launched Project Spring, a five-year growth plan focused on market leadership, B2C and international expansion, innovation, talent, and ESG integration.

• Achieved highest ever 9M revenue and PAT, surpassing ₹150 billion revenue milestone for the first time.

• Strong demand outlook supported by government CAPEX, real estate upcycle, and robust macroeconomic indicators.

Financial highlights

• Q3 FY25 consolidated revenue grew 20% YoY; EBITDA up 26% YoY to ₹7,199 million, with margin improvement to 13.8%.

• PAT reached a record ₹4,643 million with an 8.9% margin; net cash position at ₹17,140 million.

• Nine-month FY25 revenue up 24% YoY, EBITDA up 12% YoY, and PAT up 5% YoY.

• Working capital cycle at 51 days; Q3 CAPEX at INR 2.5 billion, nine-month CAPEX at INR 8.3 billion.

• Basic EPS for Q3 FY25: ₹30.42; nine months: ₹86.02.

Outlook and guidance

• Project Spring targets wires and cables business growth at 1.5x market rate, sustainable EBITDA margins of 11%-13%.

• FMEG business to grow 1.5x-2x market rate, aiming for 8%-10% EBITDA margin by FY30.

• International business to exceed 10% of revenue; INR 60-80 billion CAPEX planned over five years.

• Dividend payout ratio to rise above 30% by FY30.

• Management expects no material adverse impact from the December 2023 income tax search.