Synopsis:
A leading cable stock gained after global investors acquired a significant stake through a block deal, even as promoters sold shares. Strong quarterly growth, expanding margins, rising exports, and a robust multi-year expansion strategy highlight its market leadership and long-term growth potential.
The shares of the prominent cable manufacturer gained 1.3 percent in today’s trading session after JP Morgan, Morgan Stanley, Societe Generale, and others acquired 23.3 lakh shares via a block deal.
With a market capitalization of Rs 1,12,506.08 crore, the shares of Polycab India Ltd were trading at Rs 7,474.00 per share, increasing around 0.92 percent as compared to the previous closing price of Rs 7,405.55 apiece.
Block Deal
The shares of Polycab India Ltd have seen bullish movement after JP Morgan, Morgan Stanley, Societe Generale, and others acquired 23.3 lakh shares via a block deal at an average of Rs 7,458 per share, which is valued at Rs 1,739.7 crore.
However, Ajay Jaisinghani, Girdhari Thakurdas Jaisinghani, Ramesh Thakurdas Jaisinghani, Inder Thakurdas Jaisinghani, and others offloaded sold same number of shares, which is equivalent to a 1.5 percent stake in the company.
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Financial & Segment Highlights
The company delivered a strong Q1FY26 performance with revenue rising 26 percent to Rs 5,906 crore and net profit surging 49 percent to Rs 600 crore. Robust growth reflects healthy demand and improved margins, highlighting operational efficiency and positioning the business well for sustained earnings momentum.
The wires and cables segment posted 31% YoY growth, driven by over 25% volume gains, strong domestic demand, and government spending. Cables outpaced wires, with both distribution and institutional channels performing well. Exports rose 24%, aided by tariff advantages in the US, compared to competitors. EBIT margin expanded to 14.7% on operating leverage. Rising organised market share and robust capacity reinforce leadership, while evolving tariffs remain a watch factor.
The FMEG segment grew 18% YoY, driven by premiumization and scaling efficiencies, marking its second consecutive profitable quarter. Premium fans, lighting, and switches contributed to margin gains, while solar inverters doubled YoY, fueled by rooftop schemes. Management targets FMEG growth 1.5–2x the industry with 8–10% EBITDA margins by FY30, signaling strong long-term potential despite current modest market share.
The EPC segment saw revenue decline 19% YoY to Rs 3,474 million, with a 7.7% margin. The order book includes significant BharatNet projects and RDSS contracts, supporting future execution. Margins are projected at 12–14% for BharatNet and high single digits for RDSS. Despite contributing 5–10% to consolidated revenue, favorable upfront payments improve working capital efficiency.
Project Spring outlines a multi-year strategy emphasizing Rs 6,000–8,000 crore capex for capacity expansion, margin improvement, and FMEG growth. Focus is on W&C and backward integration, with premiumization in B2C wires and FMEG. Etira, Maxima, and Suprema brands drive higher-value sales. Exports leverage India’s cost advantage, while global manufacturing remains a long-term consideration.
Written by Abhishek Singh
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