Polycab India Ltd — May2026 (Q4 FY26)

Overview

Q4 FY26 Earnings Call held May 6, 2026. Record annual and quarterly performance. Largest company in Indian electrical industry by revenue for 2nd consecutive year; most profitable for 4th consecutive year. W&C domestic organized market share at 30-31% (up ~300-400 bps YoY). FMEG delivered 9th consecutive quarter of industry outperformance. Q4 disrupted by West Asia conflict (US-Israel-Iran from end of Feb 2026): crude oil ~$100/barrel, Strait of Hormuz disruptions, PVC +60-80% in March, weak trade sentiment.

Key Financials

Metric	Q4 FY26	Q4 FY25 YoY
Revenue (consol.)	—	+27%
EBITDA Margin	13.1%	—
PAT	INR 790 cr	+7% (highest ever quarterly)
PAT Margin	8.9%	—

Metric	FY26	FY25 YoY
Revenue	INR 28,500+ cr	+29%
EBITDA	—	+35%
EBITDA Margin	13.9%	+expansion
PAT	INR 2,700+ cr	+32%
PAT Margin	9.4%	—

• Net cash: INR 4,190 cr (INR 41.9 bn)
• Working capital Q4: 25 days (temporarily low due to LC use for RM; normalized 45-50 days)
• Dividend: INR 47/share (payout 27.2%, up from 26.3% FY25); target >30% by FY30
• FY26 capex: INR 1,480 cr (INR 14.8 bn); in line with Project Spring guidance

Wires & Cables Business

Metric	Q4 FY26	FY26
Revenue growth	+30% YoY	—
Volume growth	Low single digit	18% YoY
EBITDA margin	~14%+	Above company avg (>13.9%)
Institutional mix	~12-13% (elevated)	Normal ~10%
Export contribution	4.4% of consol revenue	5.4%

• Q4 domestic volume impacted: West Asia conflict (March disrupted trade; PVC +60-80%); pollution-related construction halts (North/West); softer channel sentiment
• Cables outpaced wires both Q4 and FY26; institutional grew faster than channel in Q4
• Domestic W&C organized market share: 30-31% (FY26) vs 26-27% (FY25) vs 18-19% (FY19); +300-400 bps in FY26 alone
• Channel margins 3-4% higher than institutional margins
• Raw material pricing: fully hedged (copper and aluminium); all price increases passed through; PVC also passed through; no inventory gains/losses
• XLPE/PVC: backward integrated in-house compounding; sufficient inventory for Q1 FY27

Exports

Geography	FY26 Share of Exports
North America (US)	~40%
South America	~20%
Middle East	~15-16% (now impacted)

• Export % of revenue: 5.4% (FY26); target >10% by FY30
• Total countries: 94 (up from 48 in FY19)
• US distribution network re-established in last 3-4 months
• Middle East: near-term headwind due to conflict; long-term opportunity (reconstruction demand)
• EU: aged grid infrastructure (50-60+ years) needs replacement; strong structural demand driver
• Trade tariffs largely settled; Polycab well-positioned for export growth

FMEG Business

Metric	Q4 FY26	FY26
Revenue growth	+47% YoY	—
EBIT Margin	4.1%	Mid-single digit
Solar growth	2x YoY	Largest FMEG category
Premium fans %	~25% of FY26 fan revenue	—
Premium lighting %	~35% of segment revenue	—

• 9th consecutive quarter of outperformance vs industry benchmarks
• FMEG profitable since Q4 FY25
• FY30 EBITDA margin target: 8-10%
• Solar: driven by government rooftop solar schemes, state subsidies, consumer adoption
• Other categories (switchgears, conduit pipes, switches): healthy growth

EPC Business (Q4 FY26)

• Revenue: INR 509.8 cr (-15% YoY; project execution cycle)
• EBIT margin: 7.6%
• Long-term sustainable operating margin: mid-to-high single digits

Capacity & Capex

Metric	Value
Capacity utilization	75-76% (maintained)
FY26 capex	INR 1,480 cr
Annual capex guidance (Project Spring)	INR 1,200-1,600 cr/year
Total FY2030 capex plan	INR 6,000-8,000 cr
Capex mix	~90% W&C, ~5% backward integration, ~3-4% FMEG

• EHV (Extra High Voltage) cable capacity: commissioning by end CY2026; FY28 revenues; 50% of domestic EHV currently imported
• Deliberate strategy to expand capacity before hitting 80-85% utilization

Project Spring (FY2030 Targets)

Metric	Target	FY26 Status
W&C revenue growth	1.5x-2x market growth	Delivering consistently
EBITDA margin (W&C)	11-13% LT; 12-14% near-mid term	On track
FMEG EBITDA margin	8-10%	Mid-single digit, improving
Export contribution	>10% of revenue	5.4%
Dividend payout	>30%	27.2%
Market share (W&C organized)	—	30-31%

Demand Outlook

• India FY26 GDP: ~7.6% (Q2 at 8.4% - 6-quarter high); CPI March 2026: 3.4%; RBI cut 125 bps
• Power capacity addition FY26: ~55-56 GW (nearly double FY25); T&D execution ~21,000-22,000 circuit km/year ahead
• Cable intensity: INR 15-20 of every INR 100 invested in T&D translates to cable demand
• Cable demand by end-use: power sector 40-45%, manufacturing/industrial 35-40%, mobility 10-12%, energy exploration 5-6%, niche (defense/EV) balance
• New demand drivers: data centers, defense, AI-driven infrastructure, EV charging cables (yet to fully bloom)
• Demand cannot extinguish; can only defer by 1-3 weeks; 24-36 month demand outlook very robust