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Informist, Thursday, Oct. 16, 2025

By P. Madhu Kumar

MUMBAI – Polycab India Ltd. is likely to report strong earnings for the September quarter, driven by a recovery in demand for its wires and cables segment, better pricing, and margin expansion. Polycab is expected to report a net profit of INR 6.22 billion for the September quarter, up 41% from INR 4.40 billion in the year-ago quarter, according to estimates from nine brokerages tracking the company. The net profit is expected to rise 5% sequentially. Net sales for the reporting quarter are seen at INR 65.08 billion, according to the average of estimates, up over 19% on year and over 10% sequentially, reflecting sustained momentum in the domestic cables and wires market and steady execution of engineering, procurement and construction orders.

Recovery of demand in the company's wires and cables segment, which accounts for nearly 85% of Polycab's revenue, will drive the company's double-digit revenue growth, as per the brokerages. Kotak Securities highlighted strong pricing in the cables segment, driven by the 4–5% rise in copper prices in September, which supported value growth.

Nuvama Wealth Management, Prabhudas Lilladher, and Nirmal Bang Equities project nearly 20% on-year sales growth, driven by strong performance in the cables sub-segment and higher sales of fast-moving electrical goods. Export are expected to have remained largely flat, suggesting the growth is primarily domestic-led. These brokerages also anticipate earnings before interest, tax, depreciation, and amortisation margin to grow to 13.4% from 11.3% in the year-ago quarter, supported by a better product mix and steady input costs.

The highest net profit estimate of INR 6.50 billion was from Elara Securities and the lowest estimate of INR 5.71 billion was from Prabhudas Lilladher. The brokerages attributed the profitability to strong domestic volume growth and stable raw material prices citing margin normalisation and modest contribution from exports.

The highest estimate for revenue was INR 66.47 billion by Nirmal Bang while the lowest was INR 63.43 billion by Nuvama Wealth Management. The wire and cable manufacturer's EBITDA for the September quarter is expected to a grow 45% on year and 6.8% sequentially to INR 9.16 billion, according to the average of estimates from eight brokerages.

Kotak Securities projects the earnings before income and tax margin for the wires and cables segment at 14.7%, up 245 basis points on year. The EBIT margin of the fast-moving electrical goods segment is estimated to grow 0.5%, recovering from a quarter-on-quarter decline, but limited by subdued fan sales. The margin of the engineering, procurement, and construction segment likely fell by 380 basis points on year to nearly 8%, according to estimates.

Investors will closely watch management comments on domestic infrastructure demand, copper price trends, and the pace of recovery in the fast-moving electrical goods business. Of the 17 brokerage reports on the company available with Informist, 13 have a 'buy' or equivalent rating on the stock with an average target price of INR 7,572. Four brokerages have a 'hold' or equivalent rating on the stock, with an average target price of INR 7,152.

Polycab India will detail its September quarter earnings Friday. On Thursday, the company's shares closed over 1% lower at INR 7,578 on the National Stock Exchange. The stock is up over 10% since Jul. 17 when it had announced its June quarter earnings.

Following are the Jul-Sept earnings estimates for Polycab India from nine brokerage firms in descending order by the estimate of net profit (in INR million):

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Subhojit Sarkar

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