Polycab India Q2 FY26 Earnings Highlights

Polycab India Ltd. reported its Q2 results for the fiscal year, demonstrating robust financial performance, though the stock experienced an intra-day decline. Financial Performance vs. Expectations: Revenue: The company achieved a 17.8% year-on-year (YoY) increase in revenue, reaching ₹6,477 crore, aligning closely with the CNBC-TV18 poll projection of ₹6,474 crore (18% growth). EBITDA & Margin: Polycab significantly surpassed expectations on profitability. Earnings before Interest, Tax, Depreciation, and Amortisation (EBITDA) surged by 61% YoY to ₹1,021 crore, considerably higher than the projected ₹915 crore. The EBITDA margin expanded by over 400 basis points YoY, reaching 15.8% (up from 11.5% last year), outperforming the CNBC-TV18 poll of 14.1%. Management attributed this margin strength to robust performance in the Wires and Cables segment, along with a one-off gain in the EPC business. Segmental Performance: Wires and Cables (Core Business): Revenue grew by 19% YoY to ₹5,691 crore, slightly below the brokerage expectation of 20%. This segment was a primary driver of the overall revenue growth. FMEG (Fast Moving Electrical Goods): Revenue increased by 13.7% YoY, slightly missing the 15% growth anticipated by brokerages like Kotak. EPC: Revenue declined by 19% YoY. Crucially, despite the revenue contraction, the EBIT (Earnings Before Interest and Tax) for this segment grew by 42% YoY, aided by the mentioned one-off gain. Stock Reaction: The company's stock fell to its day's low following the announcement, trading 2% lower at ₹7,426.5. The initial negative market reaction may be linked to profit-taking or concerns regarding the sustainability of the one-off gain in the EPC margin and the slight misses in the growth rates of the core Wires & Cables and FMEG segments compared to high brokerage expectations. Despite the day's fall, the stock retains gains of approximately 4% over both the last month and year-to-date.