Polycab rallies 21% in 1 month; stock hits record high in weak market

Polycab India management expects the strong W&C momentum to sustain in Q4, traditionally the strongest quarter.

Polycab India share price today

 

Share price of Polycab India hit a new high of ₹8,132.50, gaining 2 per cent on the BSE in Tuesday’s intra-day trade in an otherwise weak market on the back of healthy business outlook. In comparison, the BSE Sensex was down 1 per cent at 82,510.69 at 11:53 AM.

 

In the past one month, the stock price of the electrical cables company has outperformed the market by soaring 21 per cent, as against 1 per cent rise in the benchmark Sensex.

 

What’s driving Polycab India’s share price?

 

The management of Polycab India in the earnings conference call on January 16, 2026 said they were witnessing signs of recovery in consumption and this improving demand environment is expected to translate into a revival in private capex, complemented by sustained public investment, providing strong confidence in India's growth outlook.

 

 

The private capex cycle in India is showing signs of recovery aided by the monetary policy support and the stimulative impact of GST rate cuts on consumption, laying the foundation for sustained investment growth, the management said.

 

Meanwhile, for the quarter ended December 31, 2025 (Q3FY26), the company delivered 46 per cent year-on-year (YoY) growth in consolidated revenues, driven by strong execution in the Wires and Cables (W&C) segment and healthy growth in the Fast Moving Electrical Goods (FMEG) business.

 

The W&C business delivered very strong performance, recording 53 per cent YoY revenue growth during the quarter. This growth was led by domestic W&C business, which posted an exceptional 59 per cent YoY growth, supported by robust demand conditions and sustained commodity price inflation. In volume, the domestic W&C business recorded nearly 40 per cent growth, reflecting healthy underlying demand.

 

During the quarter, wires growth outperformed cables, driven by pre-stocking by channel partners amid elevated copper prices. Within the cable segment, institutional sales growth outpaced the channel sales, reflecting strong traction in project-led demand.

 

The management expects the strong W&C momentum to sustain in the fourth quarter (Q4), traditionally the strongest quarter. While the 11-13 per cent W&C EBITDA margin is five-year guidance, Polycab believes that near-term margin could be 12-14 per cent.

 

Brokerages view on Polycab

 

Analysts at Elara Capital reiterated an 'Accumulate' rating on Polycab with a higher target price of ₹8,180 on 33x December FY27E P/E. The brokerage firm in the Q3 result update said that they remain positive on robust domestic demand, led by capex, along with surging copper prices, resulting in average selling price (ASP) rise, strong lead over the No 2 C&W firm in top line, huge capex plan to enable growth, and Fast Moving Electric Goods (FMEG) profitability.

 

Motilal Oswal Financial Services also reiterated a ‘Buy’ rating on Polycab with a target price of ₹9,600 (based on 40x FY’28E EPS).

 

The brokerage firm said that Polycab reported strong revenue growth in Q3FY26, which was significantly above our estimates. However, the raw material cost inflation impacted the C&W segment's margins. Demand for C&W continues to be driven by increased government and private spending, along with real estate demand. 

 

The management reiterated that the current pricing strategy is aimed at supporting distributors, and as a result, the company has gained market share. In FMEG, the company reported its fourth consecutive quarter of positive margin and reiterated its goal to achieve ~8-10 per cent margin by FY30E, analysts said.  =====================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.