Polycab India reported unaudited consolidated financial results for the quarter ended June 30, 2026, demonstrating significant growth in revenue and profitability. Revenue from operations for Q1FY27 stood at ₹82,097.32 million, a 39% increase from ₹59,059.76 million in the same period of the previous year. Net profit for the quarter rose to ₹7,967 million, compared to ₹5,996.96 million in the year-ago period, driven by strong performance across its business segments.

Key Financial Highlights

The following table provides a summary of Polycab India's Q1FY27 consolidated financial performance:

Profitability and Earnings Performance

The company's profit for the period attributable to equity shareholders of the parent company was ₹7,843.37 million, up from ₹5,921.21 million in the prior year quarter. Earnings per share (EPS) on a basic and diluted basis improved to ₹52.09 and ₹51.94 respectively, from ₹39.36 and ₹39.21 in the corresponding period of the previous year. EBITDA increased by 32% year-on-year and the margins stood at 13.8%, reflecting an improvement of approximately 70 basis points sequentially over the previous quarter.

Operational Metrics

Total expenses for the quarter increased to ₹72,564.24 million from ₹51,853.34 million in Q1FY26. The cost of materials consumed was ₹65,123.50 million, compared to ₹41,853.12 million in the same period last year. Finance costs for the quarter stood at ₹800 million, up from ₹512.56 million in the prior year. The balance sheet continues to remain strong with a net cash position of ₹39.9 billion.

Segment Performance

Revenue from the Wires & Cables segment was ₹71,470.59 million, while the Fast Moving Electrical Goods (FMEG) segment contributed ₹7,611.53 million. Revenue from construction contracts was recorded at ₹3,077 million for the quarter ended June 30, 2026. The statutory auditors, B S R & Co. LLP, issued a Limited Review Report with an unmodified opinion on these results.

Strategic Outlook and Commentary

Management highlighted that the Wires & Cables business maintained steady momentum, leveraging market leadership, while the FMEG business continued its trajectory of steady improvement, supported by a richer product portfolio. The average working capital cycle improved significantly to 15 days in Q1FY27, aided by a temporary increase in payable days due to the use of letter of credit for raw material procurement. Capital expenditure during the quarter amounted to ₹3.2 billion.

The FMEG segment delivered a 71% year-on-year growth, with the Solar business delivering more than twofold growth year-on-year. EBIT margins for the FMEG business stood at 8%. The EPC business reported revenues of ₹3,077 million, a year-on-year decline of 11% primarily due to the timing and execution cycle of projects, though profitability remained healthy at ₹338 million.

Polycab India has outlined a comprehensive strategic roadmap covering margin targets across its key business segments, growth ambitions in data centers, a robust export strategy, and a clear cost pass-through policy. Under its Project Spring initiative, the company has set medium-to-long-term financial goals for its Wires and Cables, FMEG, and EPC businesses, while also identifying data centers as a significant future revenue driver. On the international front, Polycab is targeting export growth of over 10% by 2030, signalling stronger momentum than domestic sales, even as Q1 FY27 saw a year-on-year decline in international business due to geopolitical challenges.

Project Spring: Segment-Wise Margin Targets

Polycab has set defined margin goals across its major business verticals under Project Spring. The Wires and Cables segment is targeted to achieve EBIT margins in the range of 11% to 13% over the medium to long term. The Fast-Moving Electrical Goods (FMEG) segment aims for EBIT margins of 8% to 10% by FY2030, with plans to grow at 1.5x to 2x the industry growth rate while simultaneously improving profitability. The EPC (Engineering, Procurement, and Construction) business expects steady operating margins in the high single digits.

EPC Business: BharatNet, RDSS, and Working Capital

Within the EPC segment, Polycab anticipates growth at 1.5 times the market rate. Two major government-backed projects—BharatNet and RDSS (Revamped Distribution Sector Scheme)—are each projected to generate around ₹800 crore this year, providing a strong revenue foundation for the segment. The company also expects its working capital cycle to stabilize in the range of 45 to 50 days, reflecting improved operational efficiency.

Export Strategy: Targeting Over 10% Growth by 2030

Polycab has set an ambitious export growth target of over 10% by 2030, suggesting that international business is expected to grow at a faster pace than domestic sales. The company maintains a strong export order book, indicating robust underlying international demand for its products. However, Q1 FY27 saw a year-on-year drop in international business, attributed to prevailing geopolitical issues that created near-term headwinds. Despite this short-term pressure, the company's solid fundamentals and healthy order book point toward an expected recovery in its export performance.

Data Centers: A Significant Growth Avenue

Polycab views data centers as a huge opportunity, with the company anticipating significant revenue growth from this segment in the coming years. The rapid expansion of digital infrastructure in India and globally positions data centers as a key demand driver for cables and wiring solutions—core product categories for Polycab. The company's confidence in this segment reflects broader industry trends toward increased data consumption and infrastructure investment.

Cost Management Strategy

Polycab has reaffirmed its approach of passing on cost increases to the market. This pricing strategy reflects the company's intent to maintain financial discipline without absorbing input cost pressures internally, underscoring a consistent operational philosophy in managing profitability across business cycles.

Key Highlights

• Wires & Cables segment targets EBIT margins of 11%–13% over the medium to long term under Project Spring
• FMEG segment aims for 8%–10% EBIT margins by FY2030, targeting growth at 1.5x–2x the industry rate
• EPC business expects high single-digit operating margins, with BharatNet and RDSS each projected to generate ~₹800 crore this year
• Working capital cycle expected to stabilize between 45–50 days
• Export growth target of over 10% by 2030, projected to outpace domestic sales growth
• Q1 FY27 international business saw a YoY decline due to geopolitical headwinds, though recovery is expected on the back of a healthy order book
• Data centers identified as a huge opportunity with significant revenue potential
• Company will continue passing on cost increases to customers to protect margins

Polycab's multi-pronged strategy—spanning structured margin targets under Project Spring, government-backed EPC project revenues, an ambitious export growth roadmap, and data center-driven opportunities—reflects a broad-based approach to sustaining and improving business performance across segments, even as near-term geopolitical factors create selective headwinds in international markets.