Analyst Concall
Polycab India's pdt prices in tandem with rise in input costs
This story was originally published at 18:43 IST on 6 May 2026
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--Polycab India: Incurred capex of INR 14.8 bln in FY26
--CONTEXT: Polycab India mgmt's comments in post-earnings call with analysts
--Polycab India: Cables, wires volume growth in low single digit in Q4
--Polycab India: Took a price hike of 18-19% in Q4
--Polycab: Did sizeable business in South Africa FY26, around 20% of exports
--Polycab: See North America, Europe driving demand in coming qtrs
--Polycab India:Expect to commission extra high voltage capacity by 2026-end
--Polycab India: Product prices in tandem with rise in raw material prices
By Ashutosh Pati and Pallavi Singhal
MUMBAI/NEW DELHI – Polycab India Ltd.'s product prices are "in tandem" with the rise in costs of raw materials as it hiked prices by 18-19% in the March quarter, the company's management said Wednesday in the post-earnings conference call with analysts. "...materials like aluminum, copper, PVC, there has been no challenge with respect to passing on the price," a top official said.
Polycab is planning to commission its extra high voltage capacity by the end of 2026. The company expects this capacity to contribute to its top line by financial year 2027-28 (Apr-Mar), the management said. "...we can see some contribution from EHV (extra high voltage) capacity because it's a tender-based business and we see a ready market...as soon as we are on stream and we bid, I think we should be able to get revenue," the official said.
The growth in Polycab's bottom line for the March quarter was the slowest in six quarters due to pressure on the margins of its leading wires and cables segment. The earnings before interest and tax margin of this segment fell 2 full percentage points to 13.1% in the reporting quarter. However, its margins remain within the guided range of 12–14%. The decline in margin on an annual basis was primarily because of an unfavourable mix shift, led by lower export contribution, higher institutional sales, and operating deleverage, the company said.
However, the company remains confident in its export opportunities. For FY26, its exports rose on an absolute basis despite declining on a relative basis. "The relative contribution decline is largely due to a stronger domestic growth, which has expanded the overall revenue base," the official said. Polycab India has also recently re-established its distribution network in the US, which is one of the largest export markets for the company, along with Europe.
"Exports is actually going to be a big lever of our growth going forward," the official said. Polycab's exports to West Asia were impacted in March due to the war in the region, but still contributed around 16% to the total export revenue. The US and North America contributed around 40% to the company's FY26 exports. It does not expect exports to West Asia to contribute much in the near term but North America and Europe will be the demand drivers in the coming quarters. Polycab also did sizeable business in South Africa, contributing around 20% to exports in FY26.
The company incurred capital expenditure of INR 14.80 billion in FY26. Its revenue from cables and wires rose around 30% in the March quarter but volumes rose in low single digits, the management said. The company witnessed strong demand for all its products in the fast-moving electrical goods segment, especially solar products. This segment' growth was also due to the company's premiumisation plans and expansion of energy-efficient products. Its premium fans contributed around 25% to the segment's revenues in FY26.
The company's consolidated net profit rose over 6% on year to INR 7.73 billion in the March quarter. Its revenue for the quarter rose nearly 27% on year to INR 88.64 billion. On Wednesday, shares of Polycab India closed around 1% higher at INR 8,415.50 on the National Stock Exchange. End
Edited by Avishek Dutta
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