Polycab India has taken center stage in the stock market following the release of its Q1 FY26 earnings, which revealed the highest-ever revenue for a first quarter in the company’s history. This performance has led prominent brokerage firm Nuvama to issue a “Buy” recommendation with a target price of seven thousand nine hundred and fifty rupees per share. This projection suggests a potential upside of more than fifteen percent from current levels.
The company’s primary strength lies in its domestic wires and cables business, which grew by an impressive thirty-two percent year on year. This segment continues to be the backbone of Polycab’s operations, and Nuvama has highlighted its contribution as a major driver for their positive outlook. Cables outpaced wires in terms of growth, which is a signal of increasing infrastructure and commercial demand across sectors. Furthermore, the international segment, while smaller in size, posted steady growth of twenty-four percent compared to the same period last year. It now contributes over five percent to the company’s consolidated revenue, reflecting expanding global reach.
One of the standout figures from the report is the earnings before interest and tax margin, which stood at 14.7 percent. This near-record high margin is up by over two percentage points from the previous year, driven by smart pricing strategies and operational efficiencies. These factors have strengthened the belief among analysts that Polycab is on solid ground and well-positioned for further gains.
In addition to cables and wires, Polycab’s fast-moving electrical goods segment is showing positive signs. Revenues here grew by eighteen percent year on year, beating its own historical average of eleven percent growth over the past six years. Despite a soft performance in the fans category, due to a shorter summer season, other product categories such as lighting, switches, switchgears, conduit pipes, and fittings performed well. Solar products in particular more than doubled their revenue compared to the previous year, showcasing the growing demand for renewable energy solutions.
Profitability in this segment also improved, with EBIT margins reaching 2.1 percent for the second straight quarter. This has been supported by a shift towards premium product offerings and operational leverage, according to Nuvama. The company’s ability to maintain profitability in a diverse product mix is viewed as a strong positive by analysts and investors alike.
However, there are risks that must be acknowledged. The brokerage firm notes that continued volume growth and margin stability in the cables and wires segment will be critical. Export performance, especially with potential tariff changes in the United States, could also influence future performance. Similarly, maintaining momentum in the fast-moving electrical goods category, especially as consumer trends evolve, will be key to sustaining profitability.
Polycab’s recent performance reflects a combination of strategic execution, strong domestic demand, and expanding international presence. For retail investors looking for growth opportunities in the Indian stock market, this company presents an interesting case. The recommendation from Nuvama, backed by data and supported by solid earnings, reinforces market confidence in Polycab’s future trajectory.
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