Polycab's Data Centre Power Play

Polycab India leads the wires and cables sector, powering the data centre boom with AI and cloud demand. This positions shareholders for strong gains, though capex risks remain. Core Business Strength

dominates wires and cables (84% of FY25 revenue), with FMEG and EPC adding diversification. H1 FY26 revenue hit ₹12,383 crore, up 21% YoY, driven by volume growth and better pricing. EBITDA surged 55% to ₹1,878 crore at 15.2% margins, boosting PAT 53% to ₹1,293 crore. High returns (RoCE 29.7%, RoE 21.4%) signal efficient capital use, benefiting equity holders via compounding. Data Centre Tailwind India's data centres need ₹4.4 lakh crore by 2030 for power, fiber-optic and fire-resistant cables—Polycab's forte. The firm supplies projects now and eyes 1.5x industry growth, fueled by metros, smart cities and real estate. This expands the addressable market, lifting revenues and margins for sustained shareholder value. Growth Plans and Risks ₹6,000-8,000 crore capex over five years targets capacity, exports (to 10%+ of sales) and premiums. Success could drive 18%+ CAGR, but delays, competition or demand slowdowns risk returns. At 43x P/E (premium to 20x industry), execution matters. Overall, the setup favors long-term shareholders with robust cash flows and leadership.