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Informist, Friday, Jan. 16, 2026

By Ashutosh Pati and Sunil Raghu

MUMBAI – Electrical equipment manufacturer Polycab India Ltd. will hike prices of its products in a staggered manner to offset the sharp rise in prices of raw materials such as copper, the company's management said in a post-earnings call with analysts Friday. Of the rise in copper prices during the quarter, the company had raised product prices by 75-80%.

Copper and aluminum prices rose around 21% and 11% sequentially, respectively, in the December quarter. "In order to avoid demand disruption arising from elevated input costs, the company took a strategic decision to pass on the increase in raw material prices in a staggered manner," the management said, adding that this resulted in a marginal pressure on the company but protected its volumes, market share gain, and strengthened its relationships with channel partners.

While it is difficult to predict how commodity prices will move in the coming months, Polycab's management is confident that demand for cables and wires will remain robust and growth will continue. "We've seen a good amount of movement in government (contracts). All segments are pumping in money into power, utilities and infrastructure. I think from that perspective, I don't think demand is going to be a challenge for us," the management said.

The company's revenue from the wires and cables segment, the biggest contributor to sales, rose 54% on year to INR 68.53 billion in the December quarter. The growth in demand for wires outperformed those for cables, driven by pre-stocking by channel partners due to the sharp rise in copper prices. In value terms also, growth in wires was higher than that in the case of cables. "Within the cable segment, institutional sales growth outlays the channel sales, reflecting strong traction in project-led demand," the management said.

Polycab incurred capital expenditure of INR 3.4 billion in the December quarter and INR 10.9 billion in the nine-months ended December. The company's advertising and promotion expense surged to INR 907.7 million in the December quarter from INR 369.6 million in the year-ago period and INR 320.74 million in the trailing quarter. The company's management described the rise in these expenses as a strategic investment which will translate into growth in the future. Polycab plans to spend 3-5% of its B2C top line every year on advertisement and promotions.

In the company's fast-moving electrical goods segment, solar products have become the largest category and one of the reasons for the segment becoming profitable. The management believes this segment will continue to improve its profitability in the coming quarters. During Oct-Nov, the offtake in fans was quite slow but improved in December, they said.

The company reported a net profit of INR 6.22 billion for the December quarter on revenues of INR 76.36 billion. On Friday, Polycab shares closed nearly 3% lower at INR 7,121.50 on the National Stock Exchange.  End

Edited by Ashish Shirke

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