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Informist, Sunday, May 3, 2026

By Ashutosh Pati

MUMBAI – Electrical equipment manufacturer Polycab India Ltd.'s bottom line for the March quarter is expected to fall marginally because of pressure on margins of its leading cables and wires segment and a high base from the year-ago quarter, according to analysts. Revenue, however, is likely to rise due to higher realisations amid an increase in prices of copper and aluminium, though volumes remain broadly flat. The company's margins are likely to be under pressure due to a lag in passing on higher raw material costs and weaker export mix amid the military conflict in West Asia.

Polycab India is expected to report a consolidated net profit of INR 7.12 billion for the March quarter, down 2% on year but up nearly 11% from the previous quarter, according to an average of estimates from 11 brokerages. The company's consolidated revenue for the reporting quarter is expected to rise 18% on year and 8% on quarter to INR 82.42 billion, according to the average of the estimates.

Prabhudas Lilladher Pvt. Ltd. has the highest estimate for the company's net profit at INR 7.87 billion while YES Securities (India) Ltd. has the lowest estimate of INR 6.65 billion. Estimates for the company's revenue range from a high of INR 84.68 billion from B&K Securities to a low of INR 80.42 billion from Kotak Securities Ltd.

Demand for cables and wires remained firm in January and February, supported by seasonal tailwinds and infrastructure spending, but softened in March due to supply chain disruptions linked to the West Asia conflict, brokerages said. "...demand softened in Mar'26 due to the supply chain disruptions amid the West Asia crisis. These disruptions also hit export sales in the Middle Eastern markets," Motilal Oswal Financial Services Ltd. said.

However, Polycab's revenue growth is expected to be aided by "value-led" growth in the wires and cables segment, as higher prices of copper and aluminium improved realisations. Brokerages expect 23-24% on-year growth in revenue of the wires and cables segment for the March quarter. However, the sales volume of wires and cables was likely flat on year as exports were hit by the war in West Asia.

"...we expect POLYCAB to report healthy performance driven mainly by growth in W&C (wires and cables) segment, we expect (about) 21% yoy (year-on-year) growth in W&C led largely by value growth through price pass on amid elevated RM (raw material) prices, while volume growth is expected to remain largely flattish levels, due to normalisation in channel inventory levels and some demand softness in near term," Equirus Securities Pvt. Ltd. said.

Brokerages were divided on the revenue from the company's fast-moving electrical goods segment, with some expecting double-digit growth due to improvement in pricing of fans and continued traction in solar equipment. However, others expect single-digit growth as demand for the segment was subdued with consumer sentiment being weak. Equirus Securities said the segment's revenue is expected to grow 18% on year while Prabhudas Lilladher expects growth of around 7%.

Polycab's earnings before interest, tax, depreciation, and amortisation are expected to rise nearly 4% on year and more than 10% on quarter to INR 10.65 billion for the March quarter, according to the average of estimates from nine brokerages. Estimates range from a high of INR 11.35 billion from Prabhudas Lilladher to a low of INR 9.98 billion from YES Securities.

The company's wires and cables segment's margin is expected to fall on year to 13%, according to Equirus Securities. This is because of a "delay in price pass through of increased RM (raw material) cost for protecting demand along with expected shift in mix (higher margin export biz may see some slowdown on account of tensions in Middle East)", the brokerage said.

Kotak Securities said the EBIT margin of the segment is expected to contract 255 basis points on year due to adverse operating leverage and a lag in passing on the increase in costs. However, it expects the margins of the fast moving electrical goods segment to rise 255 bps to 3%. Motilal Oswal expects this segment's margins to rise 210 bps to 2.5%.

The company will detail its March quarter earnings Wednesday. Of the 13 brokerage reports on the company available with Informist, 11 have a "buy" or equivalent recommendation on the stock with an average target price of INR 8,866. This is over 10% higher than the current market price. Two brokerages have a "hold" or equivalent recommendation.

Thursday, shares of Polycab closed 0.5% lower at INR 8,110.50 on the National Stock Exchange. The equity market was shut Friday for Maharashtra Day. The company had reported a consolidated net profit of INR 6.22 billion for the December quarter on revenues of INR 76.36 billion. Since then, its stock has risen around 14%.

Following are the March quarter earnings estimates, in INR billion, for Polycab India from 11 brokerages in descending order of the net profit estimate:

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Edited by Deepshikha Bhardwaj

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