Polycab's record Q2: 53% sales jump
Polycab India, which makes the wires and cables that carry power in homes, offices and factories and also sells fans, lights and other electrical goods, on October 19 filed the transcript of its October 15 earnings call for the quarter ended September 30, 2026 . Management called it the highest-ever quarterly and half-yearly revenue and profit, with all three segments contributing . Scale plus a richer mix supported sequential margin improvement, with the consumer business turning decisively profitable .
Record quarter combined higher sales with strong profit growth
Consolidated revenue grew 53% year-on-year, EBITDA grew 39% year-on-year and profit after tax, or PAT, grew 43% to a record high . EBITDA here excludes other income, and PAT is on a reported basis . Margin expanded sequentially but was lower than a year ago as input costs took a larger share of sales .
Source: .
| Q2 FY27 | Q1 FY27 | Q2 FY26 | |
|---|---|---|---|
| Revenue (₹ crore) | 9,898.9 | 8,209.7 | 6,477.2 |
| EBITDA (₹ crore) | 1,422.5 | 1,136.2 | 1,020.7 |
| PAT (₹ crore) | 990.0 | 796.7 | 693.0 |
| EBITDA margin | 14.4% | 13.8% | 15.8% |
| PAT margin | 10.0% | 9.7% | 10.7% |
Source: .
| H1 FY27 | H1 FY26 | |
|---|---|---|
| Revenue (₹ crore) | 18,108.6 | 12,383.2 |
| EBITDA (₹ crore) | 2,558.7 | 1,878.4 |
| PAT (₹ crore) | 1,786.7 | 1,292.7 |
| EBITDA margin | 14.1% | 15.2% |
| PAT margin | 9.9% | 10.4% |
The half year crossed ₹18,000 crore in revenue, also a company high . In Q2 FY27, cost of goods sold rose to 76.4% of sales from 72.9% in Q2 FY26, which lowered contribution, while lower operating expenses as a share of sales helped the sequential recovery .
Wires and cables drove growth on healthy domestic demand
Wires and Cables, the largest business, delivered strong growth on demand from government and private customers . Domestic wires and cables grew 50% year-on-year on healthy demand, strong channel execution and commodity-linked pricing . Margin improved sequentially on efficiencies and favourable mix .
Source: .
| Q2 FY27 | Q1 FY27 | Q2 FY26 | |
|---|---|---|---|
| Revenue (₹ crore) | 8,300.5 | 7,155.3 | 5,632.9 |
| EBIT (₹ crore) | 1,178.2 | 953.3 | 850.4 |
| EBIT margin | 14.2% | 13.3% | 15.1% |
EBIT is earnings before interest and tax. Management guides this business on EBITDA margin over the medium to long term .
Wires grew faster than cables and channel beat institutional
Volume grew in the mid-to-high single-digit range on top of 18% growth in the same quarter last year . Within that, wires volume grew in early double digits and cables in mid-single digits, so wires led . Channel sales grew faster than institutional sales, which management reads as strength in its distribution-led model .
The West was the largest region, followed by the South, North and East, showing broad-based growth . Management asks investors to judge volumes over 10 to 12 months, anchored to doing 1.5 times market growth, not quarter to quarter .
Housing, infrastructure and power kept demand strong
Real estate stayed strong, with launches still up 4% and current sales reflecting demand created by about 3.8 lakh units sold and launched in 2024 . Management also pointed to manufacturing demand, government schemes and the coming 8th Pay Commission for affordable housing .
The wider backdrop was supportive. GDP grew 7.8% in Q1 FY27, GST collections grew 15% year-on-year, bank credit grew close to 15% to 20%, and power demand stayed robust . Government capital spending was ₹5.10 lakh crore in April to August 2026, up 18% year-on-year, with another ₹1.9 lakh crore approved for Green Corridor Phase 3 for 135 gigawatts of renewable evacuation and battery storage .
Regular price pass-through accompanied little extra dealer stocking
Copper was up only 6% from the prior quarter while aluminium came down . Polycab passes costs every month for cables and every fortnight for wires on a cost-plus model . It saw no meaningful extra stocking by dealers in the quarter . High copper prices also helped reported values alongside operating leverage from higher scale .
Consumer business doubled as solar and premium products scaled
FMEG, the consumer electricals business of fans, lighting, switches, switchgear, conduits, pipes and solar inverters, hit an all-time high quarterly revenue . This was its 11th straight quarter of beating industry growth and its seventh straight profitable quarter .
Source: .
| Q2 FY27 | Q1 FY27 | Q2 FY26 | |
|---|---|---|---|
| Revenue (₹ crore) | 993.1 | 761.2 | 443.7 |
| EBIT (₹ crore) | 100.6 | 60.6 | 2.4 |
| EBIT margin | 10.1% | 8.0% | 0.5% |
Revenue was up 124% year-on-year . Solar products, where Polycab only sells inverters on a trading model, remain the largest FMEG category and grew multifold . Growth was helped by PM Surya Ghar Yojana, state programmes and rising rooftop adoption . All other categories also grew very strongly on real estate, product innovation, wider distribution and deeper customer engagement .
First double-digit margin came from scale and richer mix
EBIT margin crossed double digits for the first time after the business first turned profitable in Q4 FY25 . Management linked it to scale and operating leverage as all categories fired together . Premium share rose, with fans at about 33% premium and lights at about 38% .
A solution-led bouquet for building customers, region-specific profit responsibility instead of one pan-India plan, better availability and its Polyratna dealer programme also helped .
Project business grew fast while margin returned to normal
EPC, the project execution business, grew on milestone-based execution . The year-on-year profit fall reflects a one-off gain in the base quarter, while profit improved from the prior quarter .
Source: .
| Q2 FY27 | Q1 FY27 | Q2 FY26 | |
|---|---|---|---|
| Revenue (₹ crore) | 617.1 | 307.7 | 402.4 |
| EBIT (₹ crore) | 44.4 | 33.8 | 73.0 |
| EBIT margin | 7.2% | 11.0% | 18.1% |
Revenue was up 53% year-on-year and 23% for the half year . Management expects sustainable margins in the high single digits over the medium to long term on disciplined project choice and execution . Work centres on Bharat Net and RDSS, with the order book at roughly ₹9,000 crore to ₹10,000 crore supporting upcoming execution .
Cash stayed strong while low working capital will normalise
Net cash, defined as cash plus investments plus non-current deposits minus debt, rose from a year ago . Capital spending in the first half went to capacity, supply chain and growth platforms .
Source: .
| Q2 FY27 | Q1 FY27 | Q2 FY26 | |
|---|---|---|---|
| Net cash (₹ crore) | 4,519.9 | 3,990.0 | 2,941.6 |
| Capex in period (₹ crore) | 292.4 | 316.6 | 334.7 |
| Average net working capital (days) | 11 | 15 | 25 |
FY26 full-year average.
Average working capital fell to about 11 days on higher payable days from greater use of letters of credit for raw materials . Management expects this to normalise toward 45 to 50 days as those benefits fade . A roughly ₹1,200 crore line in the cash flow statement was advance payments for inventory, not a one-off .
Long-term targets stay unchanged after a strong quarter
Under Project Spring, Polycab aims to grow wires and cables at 1.5 times market growth with 11% to 13% EBITDA margin, to grow FMEG at 1.5 to 2 times industry growth with 8% to 10% EBITDA margin by FY30, and to keep EPC at high single-digit margins . Management said the growth targets use a compound annual growth approach to FY30, while margins can vary between high single digits and double digits from year to year .
Management retained those EBITDA margin targets. Separately, Q2 FY27 EBIT margins were 14.2% in wires and cables and 10.1% in FMEG; these reported EBIT margins use a different profit measure from the EBITDA targets . Management attributed the strong margins to a combination of operating leverage, wires beating cables, channel beating institutional, exports and premiumisation, and said margins would normalise over time . It said the second half looks promising on demand but seasonal swings will remain .
Exports rebounded but domestic growth kept share low
Exports picked up strongly despite geopolitics and shipping delays of 10 to 12 days .
Source: .
| Q2 FY27 | Q1 FY27 | Q2 FY26 | |
|---|---|---|---|
| Exports revenue (₹ crore) | 493.1 | 267.1 | 420.2 |
| Share of consolidated revenue | 5.0% | 3.3% | 6.5% |
Sales grew 17% year-on-year and 85% from the prior quarter, with a strong order pipeline across the US, Europe, Latin America and Asia and presence in 94 countries . The lower share versus last year is because domestic sales grew faster and expanded the base . Management expects exports to pick up, while flagging geopolitics and tariff risk .
New wires entrant seen as small near-term threat
On UltraTech's entry, management said it is in a small slice of wires . It pegged the overall cables and wires market at roughly ₹1.1 lakh crore with wires at about 30% and 30% to 35% of that still unorganised, leaving room for more players . It sees no real near-term threat, has taken no pricing action, and points to gaining 1% to 1.5% share most years and 3 to 4 points last year to about 30% to 31% of the organised market .
Court stay leaves insolvency admission on hold
On the Asier Metals case, the company has appealed to the National Company Law Appellate Tribunal in New Delhi against admission of a ₹2.79 crore commercial dispute into insolvency proceedings . The tribunal has stayed the order in full, arguments were heard on October 15 with the order reserved, and the company expects no material impact on finances or operations .
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