POLYCAB

Hits 52‑Week High Despite Margin Dip

’s shares surged over 7% to ₹9,050 (52‑week high) after Q4FY26 results, despite a 160bps YoY drop in EBITDA margin to 13.1%. Revenue growth and market share gains helped the company beat estimates, while management highlighted strong demand visibility from the power sector and upcoming capacity additions. Financial Highlights (Q4FY26 & FY26) Q4FY26 revenue: ₹8,864 crore (+27% YoY). EBITDA: ₹1,162 crore (+13% YoY). EBITDA margin: 13.1% (–160bps YoY). 9MFY26 EBITDA growth: +47% YoY vs modest 13% in Q4, reflecting mix shift. FY26 investments: ₹1,500 crore; planned ₹1,200–1,500 crore annually over next five years. Operational & Strategic Drivers Market share: improved by ~400bps in FY26 to ~30–31%. Transmission lines: execution expected at 21,000–22,000 ckm annually vs ~15,000 ckm over past five years. EHV cables plant: ₹700 crore project to be commissioned by end‑2026; half of current demand met via imports. Exports: US contributes ~40% of exports; distribution network re‑established in past 3–4 months. Export target: 10% of revenue by FY30 (vs 4.4% currently) under Project Spring. Challenges Margins: pressured by higher input and logistics costs; institutional sales (lower margin by 3–4pp) offset distributor caution. West Asia demand: hit in Q4, though expected to recover with reconstruction needs. Valuation: trades at ~43x FY27 EPS (Bloomberg consensus), requiring sustained margin recovery to justify premium. Conclusion Polycab’s Q4FY26 results highlight resilient revenue growth and market share gains, even as margins face cost pressures. With aggressive capacity expansion, leadership in transmission lines, and export ambitions, the company is positioned for long‑term growth. Near‑term stock performance will hinge on margin recovery and execution discipline.