Polycab India Shares Plunge 4% Despite Record-Breaking Q1 Profit Surge

Polycab India Shares Plunge 4% Despite Record-Breaking Q1 Profit Surge​

Polycab India shares faced a sharp sell-off on Friday, sliding 4% to hit an intraday low of Rs 8,888 on the BSE. This decline occurred despite the company announcing its strongest-ever first-quarter performance to date.

The stock retreated from its previous close of Rs 9,216 even as the firm reported a significant 33% year-on-year (YoY) surge in net profit to Rs 797 crore. This divergence between fundamentals and share price has caught the attention of market observers monitoring the wires and cables giant.

Explosive Revenue Growth and EBITDA Expansion​

The company reported a substantial 39% YoY rise in consolidated revenue, reaching Rs 8,210 crore for the quarter ended June 30, 2026. This growth was underpinned by a robust performance in both the Wires & Cables (W&C) business and the Fast-Moving Electrical Goods (FMEG) segment.

EBITDA rose 32% YoY to Rs 1,136 crore, reflecting improved operational efficiency and a favorable business mix. The company maintained an EBITDA margin of 13.8%, while the net profit margin stood at 9.7%. Analysts view these figures as evidence of strong operational control during a period of rapid expansion.

FMEG Segment Outperforms with Solar Growth​

The FMEG business showcased remarkable strength with a 71% YoY revenue growth across all product categories. Notably, solar products remained the largest segment and more than doubled compared to the previous year.

The segment EBIT margin expanded to 8%, bolstered by operating leverage and a richer product mix. This progress aligns with the company's Project Spring initiative, which targets EBITDA margins of 8% to 10% by FY30.

Wires & Cables Dominance Amidst International Headwinds​

As Polycab's largest segment, the Wires & Cables (W&C) business saw a 39% YoY revenue growth. This was primarily driven by a 43% rise in domestic sales, fueled by healthy demand and effective execution under Project Spring.

While the wires business showed significant strength, international revenue saw a decline of 13% YoY. However, management emphasized that a diversified global footprint and a healthy order book provide clear growth visibility for the company moving forward.

EPC Business Update and Strategic Outlook​

The EPC business reported an 11% YoY revenue decline, which the company attributed to project execution timing rather than a lack of demand. Despite this, it maintained a steady 11% EBIT margin supported by a strong execution pipeline and healthy order backlog.

Chairman and Managing Director Inder T. Jaisinghani stated that the company entered FY27 with high momentum, achieving its highest-ever first-quarter revenue and profit performance. He highlighted that government infrastructure spending, capacity expansion, and innovation will serve as long-term growth drivers.

Dividend Declaration and Long-Term Stock Performance​

Following shareholder approval at the AGM on June 30, 2026, the company declared a final dividend of Rs 47 per share. This dividend amounts to a total of Rs 7,079.85 million for the period.

While the stock saw a sudden intraday dip, its medium and long-term trajectories remain robust. The stock has gained 25.12% over the last six months and is up 16.29% in the current calendar year. Furthermore, investors have seen returns of 128% over three years and 361% over a five-year horizon.