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Polycab shares slip after price-led Q1 growth, margins ease
Consolidated revenues rose 39% year-on-year to ₹8,210 crore, but wires and cables volume grew in the low-to-mid single digits while EBITDA margin fell to 13.8%.
Polycab India saw a bumpy start to the year as its shares fell about 4% in Friday’s early session, even though consolidated revenues increased 39% year-on-year to ₹8,210 crore for June quarter Q1FY27, according to LiveMint Markets.
The growth was driven more by higher copper and aluminium prices than by underlying demand, as dealers reportedly postponed purchases after June saw sharp declines in both commodities in anticipation of further price drops. Polycab’s management said on the Q1 earnings call that wires and cables volume growth was in the low-to-mid single digits.
Polycab also reported margin pressure, with consolidated EBITDA margin slipping to 13.8% from 14.5% a year ago. Wires and cables revenues rose 39% year-on-year, backed by resilient demand, improved execution under Project Spring, and higher commodity prices, while export revenues fell 13% due to geopolitical disruptions in West Asia.
Across segments, wires and cables contributed about 88% of total Q1FY27 revenues, and management said growth in wires outpaced cables and that channel sales performed better than institutional. The company’s FMEG business, about 9% of Q1 revenues, continued to grow strongly, with solar products up over two-fold and FMEG rising as much as 68% year-on-year, supported by government backing for rooftop solar under the PM Surya Ghar scheme.
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