Analyst Concall
Polycab sees robust growth for wires, cables ops in FY26
This story was originally published at 14:01 IST on 18 July 2025
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By Akash Mandal and Narayana Krishna
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--Polycab India: Consumption demand increasing gradually
--CONTEXT: Comments by Polycab mgmt in post-earnings concall with analysts
--Polycab: Overhang of US tariffs weighing on near-term export visiblity
--Polycab India: US accounts for one-third of co's export orderbook
--Polycab:Don't see wires and cables business slowing down due to US tariffs
--Polycab India: See strong demand for wires and cables in FY26
--Polycab India: See margin of cables and wires ops at 11-13% in longer term
--Polycab: Cables accounted 73-74% of total Apr-Jun wires, cables ops sales
--Polycab: Low, medium voltage cables led growth in cables business Apr-Jun
--Polycab: Co's production capacity of cables highest compared to peers
--Polycab: Wire brand Etira contributed high-teens to overall Q1 topline
--Polycab India:Confident future demand can be absorbed by current capacities
--Polycab: No plan to set up mfg unit outside India in near-to-mid term
--Polycab India: Capital expenditure in Apr-Jun was INR 4.10 bln
--Polycab India: See capex of INR 12 bln-INR 16 bln per year
--Polycab: Capex plan over 5 years still INR 60 bln-INR 80 bln
--Polycab: Large part of capex goes to wires and cables business expansion
MUMBAI/HYDERARABAD – Polycab India Ltd. sees robust demand for its wires and cables segment for the remainder of 2025-26 (Apr-Mar) both in the domestic and the international market. The company said while overhang related to US tariffs has weighed on the near-term visiblity for exports, the company does not see growth in the segment slowing down, the company's management said in a post-earnings conference call.
The company said the US market accounts for one-third of its total export orderbook. The company maintained an 11-13% target for the company's wires and cables operations over the longer term despite consistently outperforming the guidance over the past few quarters. In the June quarter, the earnings before interest and tax margin for the segment came in at 14.7%, up 190 basis points on year.
The company, which had earlier said that growth for its cables segment had outpaced that for the wires segment, further divulged that cables accounted for nearly 74% of the total sales of the segment, which came in at INR 51.31 billion for the June quarter. Low and medium voltage cables led the growth in the June quarter in the cables segment.
The company said its production capacity for the cables segment remains higher than its peers despite multiple players adding capacity due to high demand in the segment. It also was confident that increased demand in the future can be absorbed by current capacities of the company. The wire brand Etira, launched for second and third tier markets, contributed high-teens to overall sales of the company in the June quarter, the company said.
The company said it sees a capital expenditure outlay of INR 12 billion-INR 16 billion per year over the next few financial years, with an outlay of INR 60 bln-INR 80 bln planned over the next five years, the company said. In the June quarter, the company's capital expenditure was at INR 4.10 billion. The company said a large part of the capital expenditure goes towards expanding its wires and cables business.
While other big players in the segment internationally have opened up manufacturing units across various parts of the world, Polycab's management said that the company was not looking to set up any manufacturing unit outside India in the near-to-medium term.
Speaking on the fast-moving electrical goods segment, the company said it sees a strong demand in the segment going forward. The company said with Chinese players shifting to other markets due to US tariffs, Chinese companies aggresively priced their products especially in the Australian market. "Australia is where probably China has a bit of an edge...they have worked a zero tariff treaty with Australia, and most of the imports that Australia does has largely been from China and that continues to be the case," the management said. However, the management added that it does not see a "dumping effect" by these Chinese players hampering the company's exports in other geographies.
The company also said that it sees only solar inverters in its solar portfolio for now, and does not look to expand into other product categories currently. "...along with solar inverters, you are also able to sell solar cables and switch gears. So that is something which we kind of try to club and cross it. But other than that, we are not looking at expanding it to any other categories right now," the management said. End
Edited by Akul Nishant Akhoury
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