Polycab’s Q1 FY27: A Shareholder Win Worth Watching

$POLYCAB Polycab India just posted its strongest quarter yet, with revenue and profit surging on solid demand and smart execution. For shareholders, this is a clear green flag—growth is real, margins are holding, and cash flows are improving. Consolidated revenue: ₹8,210 crore, up 39% year-on-year EBITDA: ₹1,136 crore, up 32% YoY EBITDA margin: 13.8% (up ~70 bps sequentially) Profit After Tax (PAT): ₹797 crore, up 33% YoY — a record high PAT margin: 9.7% The Wires & Cables segment grew 39% YoY, driven by a 43% jump in domestic sales. The FMEG (Fast Moving Electrical Goods) business was the standout, with 71% YoY growth, led by solar inverters, fans, lights, and switches. The EPC segment saw an 11% dip due to project timing but held steady margins at 11%. Most of the 39% topline growth came from price hikes (about 34%) linked to higher copper and aluminium costs, with only low to mid single-digit volume growth (~4%). Still, Polycab gained market share, especially in wires, and benefited from a favourable product mix. The FMEG push into solar and premium electricals is paying off, with margins expanding as operating leverage kicks in. Polycab slashed its working capital cycle to just 15 days in Q1, thanks to better collections and channel financing and it shows stronger cash discipline. Profit growth outpaced revenue, showing pricing power and cost control Margins improved despite raw material inflation Record PAT and strong cash flows boost confidence in future dividends and buybacks Diversification into FMEG and solar reduces reliance on traditional cables Efficient working capital management means more cash in hand for reinvestment or returns Export sales fell 13% YoY due to Middle East tensions, and volume growth remains modest. But with a ₹10,900 crore EPC order book and strong domestic demand, the outlook stays positive. The company is not just selling more—it’s selling smarter, with better margins, stronger cash flows, and a diversified portfolio.