Polycab India Shares Fall 4% Despite Strong Results

Mumbai, July 17: Shares of Polycab India fell as much as 4% on Friday despite the company reporting a strong set of June-quarter earnings. 

The stock declined as much as 4% even after the wires and cables maker posted a 33% year-on-year jump in consolidated net profit. Analysts said the earnings were broadly healthy. As of writing the stock was down 3.7% at Rs 8,869. 

Profit beats expectations 

Polycab reported a consolidated net profit of ₹797 crore for the quarter ended June 2026, up 33% from the corresponding period last year. 

Revenue increased 39% year-on-year to ₹8,210 crore, supported by healthy demand across its core wires and cables business and continued momentum in the fast-moving electrical goods (FMEG) segment. 

The company also benefited from improving demand from infrastructure, real estate and industrial projects, reinforcing confidence in the long-term growth outlook for the sector. 

Margins exceed estimates 

Polycab’s operating performance also remained robust during the quarter. EBITDA rose 32.5% year-on-year to ₹1,136 crore, surpassing analysts’ estimates. 

However, operating margins moderated, with the EBITDA margin slipping 70 basis points year-on-year to 13.8%. Even so, the margin performance came in ahead of Street expectations. 

Core business remains resilient 

The stock kept trading below the red line despite strong show. Source: NSE 

Polycab’s wires and cables business continued to be the primary growth driver during the quarter. 

Strong demand from residential housing, commercial construction, infrastructure projects and industrial capex supported volume growth across key product categories. 

Polycab’s core wires and cables business continued to drive growth during the June quarter, with segment revenue rising 38% year-on-year to ₹7,202 crore, topping estimates. Segment EBIT also climbed sharply to ₹959 crore, compared with ₹756 crore in the year-ago period. 

The strong performance was powered by a 43% increase in domestic revenue, aided by robust market demand and continued execution under the company’s Project Spring initiative. Within the segment, the wires business outpaced cables, while channel sales grew faster than institutional sales. 

FMEG business—which includes fans, switches, lighting products and appliances—also maintained healthy momentum. 

Brokerages stay positive 

Despite the negative market reaction, brokerages largely retained their constructive stance on the stock. 

Analysts highlighted that the company’s revenue growth remained well ahead of industry trends and that demand fundamentals for the wires and cables sector continue to be robust. 

Brokerages expect Polycab to benefit from rising electrification, housing demand, infrastructure spending and manufacturing investments under government initiatives. 

Sector outlook remains favourable 

The broader outlook for India’s wires and cables industry remains positive, supported by strong investments in power transmission, renewable energy, urban infrastructure and residential construction. 

The government’s continued focus on infrastructure development and manufacturing is expected to drive sustained demand for electrical products over the coming years. 

Polycab, as the country’s largest wires and cables manufacturer, remains well positioned to capitalise on these structural growth opportunities through its extensive distribution network, and diversified product portfolio. 

What investors will watch 

Going forward, investors will closely monitor margin recovery, commodity price trends and execution across both domestic and export markets. 

Copper and aluminium prices remain key variables influencing profitability, while sustained demand from infrastructure and real estate will be crucial for maintaining revenue growth. 

The company’s ability to improve operating margins while continuing to deliver industry-leading revenue growth is expected to remain the primary trigger for the stock. 

Despite Friday’s decline, analysts believe Polycab’s long-term growth story remains intact, supported by favourable industry tailwinds, and expanding market share. 

Source

•  https://www.nseindia.com/get-quote/equity/POLYCAB/Polycab-India-Limited