Polycab India Limited has delivered strong financial performance in Q3, with revenue and consolidated net profit showing remarkable growth compared to the same period last year. The cables and electrical equipment manufacturer demonstrated robust operational efficiency and strong market demand, though EBITDA margins faced some pressure during the quarter.

Comprehensive Financial Performance

The company's Q3 results reflect significant improvement across key financial metrics. Revenue grew substantially to ₹7,640 crores from ₹5,230 crores in the previous year, while net profit growth of 34.78% year-on-year indicates strong business momentum. EBITDA performance showed solid growth, though margin compression reflects evolving cost dynamics.

Revenue and Profitability Analysis

The impressive revenue surge of 46.08% from ₹5,230 crores to ₹7,640 crores demonstrates Polycab India's strong market capture and demand momentum in the cables and electrical equipment sector. This substantial top-line growth of over ₹2,400 crores year-on-year reflects the company's expanded market presence and successful business execution.

The substantial increase in consolidated net profit from ₹460.00 crores to ₹620.00 crores demonstrates the company's ability to convert revenue growth into bottom-line performance. This profit improvement of over ₹160 crores year-on-year indicates effective operational leverage despite margin pressures.

EBITDA Performance and Margin Dynamics

Polycab India's EBITDA grew robustly by 34.17% to ₹966 crores from ₹720 crores in the previous year, adding ₹246 crores in absolute terms. However, EBITDA margin compressed to 12.70% from 13.80% year-on-year, indicating a decline of 110 basis points. This margin compression suggests increased input costs or competitive pricing pressures, though the company maintained strong absolute profitability growth.

Market Position and Outlook

Polycab India's Q3 financial results underscore its position as a significant player in the electrical equipment manufacturing sector. The company's ability to deliver consistent growth in revenue, net profit, and EBITDA reflects its operational capabilities and strengthening market presence in the cables industry. While margin compression presents challenges, the strong performance across volume and absolute profit metrics represents substantial value creation for stakeholders during the quarter.

Polycab India shares fell nearly 3% in intraday trade on Wednesday following a substantial block deal transaction worth Rs 590 crore. The stock hit a low of Rs 7,342.00 on the BSE as investors reacted to the large-scale equity transaction.

Block Deal Details

The significant transaction involved approximately 7.98 lakh shares changing hands in a single deal. According to reports, the shares were traded at an average price of Rs 7,387.50 per share, representing 0.53% of the company's total equity.

Mutual Fund Stake Sale

Reports indicate that a domestic mutual fund likely offloaded its stake in the company, though the identity of the seller has not been officially confirmed. Polycab maintains multiple mutual fund holdings among its institutional shareholders.

Key mutual fund stakeholders include UTI Flexi Cap Fund, which held approximately 15.35 lakh shares or 1.02% equity, and Motilal Oswal Nifty India Manufacturing ETF, holding around 5.79 lakh shares or 3.85% equity, according to the latest filings.

Company Profile

Polycab India operates as a leading fast-moving electrical goods company and stands as the largest manufacturer of wires and cables in India. The company's diverse product portfolio encompasses fans, switches, water heaters, switchgears, luminaires for residential, commercial and industrial applications, solar panels, conduits, accessories, and home automation solutions.

The company operates 28 manufacturing facilities across Gujarat, Maharashtra, Uttarakhand, and Daman and Diu, including joint ventures with Techno and Trafigura.

Stock Performance Analysis

Polycab India has demonstrated mixed performance across various timeframes, showing both strengths and recent challenges in its market valuation.

The stock has delivered steady long-term growth with a 14.10% gain over the past year and maintained positive momentum with an 8.72% increase over six months. However, recent performance shows some weakness, with year-to-date decline of 3.68% and a three-month drop of 2.95%. The one-month performance has turned mildly positive at 1.58%, indicating potential recovery after recent weakness.