Polycab rallies 68% from February low; hits new high after gap of 11 months

Polycab India share price today: Shares of Polycab India hit a record high of ₹7,711.30, gaining 2 per cent on the BSE in Monday’s intra-day trade on a healthy business outlook. The stock price of cable & wires (W&C) company has hit a new high after a gap of 11 months. The company surpassed its previous high market price of ₹7,607.15 touched on October 15, 2024.

 

Shares of Polycab India have rallied 68 per cent from its 52-week low of ₹4,557.45 hit on February 28, 2025. The company made its stock market debut on April 16, 2019. Currently, the stock is trading 1,333 per cent higher over its issue price of ₹538 per share.

 

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Polycab business outlook

 

Polycab is the largest company by revenue in the Indian electrical industry, holding a 26-27 per cent share in the organised W&C market and 19-20 per cent of the overall ~₹90,000 crore W&C market.

 

Looking ahead, the management sees strong tailwinds from infrastructure spending, improving private sector investment, and momentum in the real estate sector.

 

Early data for June 2025 quarter (Q1FY26) suggests a gradual improvement in consumption demand. This is reflected in rising steel consumption, a pickup in electronic imports, and higher central government revenue expenditure. The management expects the FMEG’s margin to improve in the near to medium term, which will support the Ebitda margins. 

 

India Ratings and Research (Ind-Ra) view on Polycab India

 

On August 1, 2025, India Ratings and Research (Ind-Ra) upgraded Polycab India’s bank loan facilities to ‘IND AAA’ from ‘IND AA+’ with a stable outlook. The upgrade reflects the company's substantial increase in the size and scale of its business along with the maintenance of its strong market position in the W&C segment, marked by an increase in its market share in the organised sector and the likely sustaining of its market position.

 

The company’s focus on increasing its business-to-consumer (B2C) segment sales, with the FMEG segment turning Ebitda positive from March 2025 quarter (Q4FY25), will aid in maintaining the Ebitda margins and healthy return on capital employed  of above 20 per cent, which are likely to sustain over FY26-FY28.

 

In relation to an income tax (I-T) raid conducted in December 2023, Polycab India has filed appeals and rectification applications with the relevant authorities. The total tax demand stood at ₹54.47 crore with an interest of ₹17.56 crore. Ind-Ra said it would closely monitor any developments and regulatory actions arising from the I-T raid.

 

Brokerage views on Polycab

 

As a market leader, Polycab is well-positioned to capitalise on strong demand for W&C in infrastructure, real estate, and industrial sectors. Strong demand momentum expected, driven by government capex and private sector investment. Increasing shift from unorganised to organised sector in W&C due to quality, safety, and compliance requirements, directly benefits well-established brands like Polycab, according to Asit C Mehta Investment Intermediates said in a stock update.

 

The company is also well-placed in FMEG segments, with backward integration in manufacturing and operations. It features a growing product mix across different price points that caters to a wide spectrum of customers. Additionally, revenue is expected to grow with a compound annual growth rate (CAGR) of ~20 per cent from FY25 to FY27E, driven by increased government capital expenditure in the mobility and power sectors, particularly for renewable energy projects, as well as continued real estate growth, the brokerage firm said with ‘Accumulate’ rating on stock and target price of ₹8,440 per share.