Polycab Q4FY26 impresses Street; MOFSL, ICICI Securities raise targets

Polycab shares are in focus after strong Q4FY26 results. MOFSL and ICICI Securities have raised their share price targets, citing strong demand outlook, market share gains, and robust capex plans

Polycab share price today

  Analysts project up to 16 per cent upside in Polycab shares, impressed by the company’s strong March quarter (Q4FY26) results.

 

Motilal Oswal Financial Services and ICICI Securities have raised their share price targets on the stock and expect it to reach up to ₹9,800 over the next one year.

 

Despite several near-term challenges due to external factors, MOFSL believes the demand outlook remains strong for the next 2-3 years.

 

“Polycab’s continued proactive capex ensures no capacity constraints and positions it well to capture demand recovery and maintain strong growth,” it said.  On the bourses, Polycab share price surged 6.7 per cent intraday to ₹8,988.5 per share.

 

 

Polycab Q4 results: Profit, revenue, Ebitda highlights

 

Polycab reported the highest-ever consolidated revenue of ₹8,860 crore, clocking a growth of 26.9 per cent year-on-year (Y-o-Y).

 

Consolidated Ebitda grew 13.3 per cent to ₹1,160 crore, while adjusted net profit rose 6.3 per cent Y-o-Y to ₹770 crore.

 

Polycab’s earnings were mainly driven by healthy performance in cables and wire (C&W) segment and a sustained execution in the FMEG (fast moving electrical goods) business.

 

C&W segment’s revenue rose ~29 per cen Y-o-Y to ₹7,760 crore with Ebit up around 12 per cent Y-o-Y (₹1,020 crore) and Ebitda margin 2 percentage points lower at 13 per cent.

 

FMEG segment’s revenue, meanwhile, jumped around 39 per cent Y-o-Y to ₹660 crore, with Ebit up 15x Y-o-Y (₹29.2 crore) and margin expansion of 4pp to ~4 per cent.

 

EPC and other’s revenue declined ~9 per cent Y-o-Y to ₹450 crore.

 

Overall, consolidated gross, Ebitda, and PAT margins contracted 205bps, 158bps, and 168bps Y-o-Y, respectively.  Check - TOP GAINERS NSE | TOP LOSERS NSE

Polycab management commentary

 

The management said Q4FY26 margins were hit by multiple factors, including higher institutional mix, weaker export mix due to Middle East disruption, and softer operating leverage due to weak March 2026 demand.

 

It, however, said the annual capex guidance remains at ₹1,200-1,600 crore.

 

Further, the company is confident of executing ₹6,000-8,000-crore capex over the next five years under Project Spring.

 

Analysts bullish on Polycab shares

 

Motilal Oswal Financial Services | Buy | Target raised to ₹9,800

 

MOFSL estimates a CAGR of 19 per cent in Poulycab’s revenue and Ebitda each and around 18 per cent in net profit over FY26-28.

 

It estimates operating profit margin to range around 13.5-14.0 per cent in FY27/28 (average ~13.5 per cent).

 

“We increase our EPS estimates for FY27/FY28 by approximately 3 per cent/5 per cent on account of higher revenue growth in C&W and slightly better margins in FMEG. The stock is currently trading at 42x/34x FY27/FY28 EPS estimates. We value Polycab stock at 40x FY28E EPS,” it said.

ICICI Securities | Add | Target price raised to ₹8,950

 

ICICI Securities believes the war related disruption is transitory, and the company remains well positioned to benefit from structural demand tailwinds in data centre, defence, infra-spend, and real estate over the medium-term.

 

The brokerage appreciated Polycab’s market share gain during FY26, with organised domestic C&W market share improving to 30-31 per cent from 26–27 per cent in FY25.

 

The company’s continued investments in brand, distribution and manufacturing scale have further strengthened its competitive positioning, in their view.

 

Moreover, it expects improving product mix, premiumisation and scale benefits to support profitability improvement in the FMEG segment over the medium-term.

 

“We model Polycab to report revenue/PAT CAGR of 19.9 per cent/20.6 per cent over FY25-28, and maintain RoCE above 20 per cent during the period. Our revised target price implies P/E valuation of 35x FY28E EPS,” ICICI Securities said. 

JM Financial | Buy | Share price target raised to ₹9,700

JM Financial has increased its  FY27E/28 EPS estimates by 4-5 per cent. It has increased its target price to ₹9,700, valuing the stock at 42x March, 2028 EPS estimates. 

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