POLYCAB

Q1FY27: Price-Driven Revenue Surge Amid Muted Volume Growth

reported a substantial 39% year-on-year increase in consolidated revenue to ₹8,210 crore for Q1FY27. However, this growth was primarily driven by higher copper and aluminum prices rather than an increase in underlying demand. Muted Volume Growth: Volume growth for the core wires and cables segment remained sluggish, tracking in the low-to-mid single digits. This disappointed investors, who typically prioritize volume-led growth over price-led expansions, causing the stock to drop roughly 4% in early trading. Margin Compression: The company's consolidated EBITDA margin contracted to 13.8% from 14.5% in the same quarter last year. This dip highlights the business's high sensitivity to volatile global commodity prices, which caused dealers to defer purchases late in the quarter. Segment Performance Splits: Domestic revenue for wires and cables jumped 43%, outperforming institutional sales, while exports fell 13% due to geopolitical tensions in West Asia. Concurrently, the smaller Fast-Moving Electrical Goods (FMEG) segment grew 68% year-on-year, heavily supported by solar product adoption under government schemes. Future Guidance and Risks: Despite near-term volume hurdles, management remains optimistic, leveraging a strong ₹10,900 crore EPC order book (including BharatNet projects). They aim to maintain a growth rate 1.5 times the industry standard and project exports to comprise over 10% of total revenue by FY30, though the rising share of lower-margin FMEG products remains a risk factor