Polycab India Limited delivered strong topline growth in Q3FY26 but faced margin pressures due to increased operational expenses. The company's consolidated results for the quarter ended December 31, 2025, showed robust revenue expansion while EBITDA margins compressed, leading to mixed market reception with shares declining 2.8% to ₹7,117 following the results announcement.

Financial Performance Overview

The company's quarterly performance demonstrated strong revenue momentum but highlighted cost management challenges. Revenue growth significantly outpaced market expectations, though margin compression became a key concern.

Margin Pressure Factors

The company's EBITDA margin compression of over 100 basis points to 12.66% from 13.80% in the previous year was primarily attributed to increased operational expenses. Key cost escalations included advertising and sales promotion expenses, which more than doubled to ₹91 crores from ₹37.30 crores in the corresponding quarter last year.

Finance costs also witnessed a significant increase, rising to nearly ₹69 crores in the December quarter compared to ₹50 crores in the year-ago period. These cost pressures offset some of the benefits from strong revenue growth.

Nine-Month Performance Trends

The nine-month consolidated performance reinforced the company's growth trajectory. Revenue for the period ended December 31, 2025, reached ₹2,00,193.15 crores compared to ₹1,54,225.15 crores in FY25, representing 29.81% growth. Net profit for the nine-month period stood at ₹19,228.23 crores, up 46.64% from ₹13,111.75 crores in the previous year.

Segment-wise Revenue Distribution

The company's diversified business portfolio continued to drive overall performance, with the Wires and Cables segment maintaining its position as the primary revenue contributor.

Leadership and Governance Updates

The Board of Directors approved significant organizational changes during their January 16, 2026 meeting. Mrs. Manju Agarwal was re-appointed as Independent Director for a second consecutive two-year term from January 19, 2026, to January 18, 2028, subject to shareholder approval.

The Board also approved the redesignation of Mr. Bharat A. Jaisinghani and Mr. Nikhil R. Jaisinghani from Executive Directors to Joint Managing Directors, effective January 16, 2026, for the remaining tenure until May 12, 2026, followed by a five-year extension until May 12, 2031.

Market Response and Outlook

Despite beating revenue estimates, the stock declined 2.8% post-results, reflecting investor concerns over margin compression and increased operational expenses. The company's paid-up equity share capital stood at ₹1,505.38 crores as of December 31, 2025. The results received an unmodified opinion from statutory auditors and were approved by the Board of Directors following Audit Committee review.

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.