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Informist, Thursday, Jul. 16, 2026

 

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--Polycab India: Will continue to pass on any commodity cost increases
--CONTEXT: Polycab India mgmt's comments in post-earnings call with analysts
--Polycab India: See sizeable chunk of revenue from data centres in few yrs
--Polycab India: Data centres "very big" opportunity for company
--Polycab India: Export momentum is coming back; have healthy order book
--Polycab India: Don't see dip in EPC ops sales for full year
--Polycab India: Apr-Jun wires volume up in high single digit YoY
--Polycab India: Apr-Jun cables volume up in low- to mid-single digit YoY
--Polycab India: Very healthy order book, enquiries from US
--Polycab India: Premium mix up to 25% in fast-moving electrical goods ops Q1
--Polycab India: Solar ops shr in sales largest but still below 50% in FMEG
--Polycab India: Export growth should be higher than domestic in coming yrs

 

By Ashutosh Pati and Diksha Tripathy

 

MUMBAI – Polycab India Ltd. remains confident about the growth in demand for cables and wires in the country from the continued spending on infrastructure and sees "another layer of demand" coming from data centres, increasing investment in the defence sector, and from charging infrastructure for electric vehicles. The company also expects exports to account for a major chunk of its revenue in the coming years. The management said exports could even surpass revenue from domestic sales.

 

At a post-earnings conference call with analysts, a top company official said, "I think it (data centres) is a very big opportunity. We are hopeful that material translation should happen from estimates to reality. So a sizeable chunk of demand can come from data centres, it's just a matter of timing." The Polycab India management said one megawatt of data centre capacity would translate into demand for wires and cables worth around INR 35 million. Over the next 7-8 years, it expects to generate INR 200 billion-INR 250 billion of revenue from data centres.

 

While revenues from overseas markets declined in the June quarter because of the war in West Asia, the company is seeing a "good amount" of momentum coming back in exports. Polycab India has a sizeable order book from the US, Europe, and Latin America. Despite the war in West Asia, Oman, Saudi Arabia, and the United Arab Emirates together accounted for 20-24% of the company's revenue from exports in the June quarter.

 

Polycab India expects a sizeable pickup in exports to the US and also in overall exports in the coming quarters. North America remains the biggest export destination for the company and contributed 45-50% to its overall revenue from exports in the June quarter, the management said. It said the company has a "very healthy" order book in the US and is getting more enquiries from the region. Europe's contribution to export revenue during the quarter was about 18-20%.

 

Polycab India's revenue from the fast-moving electrical goods segment rose around 68% on year to INR 7.61 billion for the June quarter. For the year-ago quarter, the company had reported revenue of INR 4.54 billion from the segment. Solar products continue to be the primary growth driver for the segment, accounting for the largest chunk of revenue. However, their contribution has not reached 50% yet, the management said.

 

"The category continues to benefit from favourable structural trends, including the PM Surya Ghar Yojana, state-level incentive programmes, and increasing consumer adoption of renewable energy solutions," the official said. "We believe the long-term growth opportunity in this space is quite substantial." The company is also seeing a growing shift towards premium products in the fast-moving electrical goods segment. In the June quarter, premium products accounted for around 25% of the portfolio.

 

In the wires and cables segment, demand for wires surpassed that for cables during the quarter. Wire volumes rose in the high single digit on year while cable volumes were up in the low-to-mid single digit, the management said. Revenue from the engineering, procurement, and construction business fell over 11% on year to INR 3.08 billion. However, the company does not see a dip in sales from this segment for the full year.

 

"...EPC business is the nature of business wherein you shouldn't see on a two- to three-month basis," the official said. "These are all milestone-linked payouts. So if the milestone happens, say, after a period of five months, then possibly revenue recognition will happen in the second quarter and not in the first quarter." Polycab India will continue to pass on any increase in the cost of commodities such as copper, the management said.

 

Polycab India reported a consolidated net profit of INR 7.84 billion for the June quarter, up over 32% on year, and better than the consensus expectation of INR 7.05 billion. Its revenue from operations rose 39% on year to INR 82.10 billion, higher than the Street's estimate of INR 78.17 billion. Thursday, its shares closed at INR 9,215 on the National Stock Exchange, down 1.2% from Wednesday. The company declared its June quarter results during market hours.  End

 

Edited by Rajeev Pai

 

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