What should investors do with Polycab shares after Q2 show? Analysts answer

Nuvama highlighted that Polycab posted revenue, Ebitda, and APAT growth of 18%, 62%, and 51% Y-o-Y in Q2, respectively, noting that the base in Q2FY25 was low due to volatile copper prices.

Brokerages have reacted positively to Polycab India’s September quarter (Q2FY26) results, with analysts at Centrum and Nuvama maintaining a ‘Buy’ stance on the stock on the back of robust growth across its core businesses and improving profitability.

 

Nuvama highlighted that Polycab posted revenue, Ebitda, and adjusted PAT growth of 18 per cent, 62 per cent, and 51 per cent year-on-year (Y-o-Y) in Q2FY26, respectively, noting that the base in Q2FY25 was low due to volatile copper prices. 

 

The Wires & Cables (W&C) segment recorded revenue growth of 21 per cent Y-o-Y, supported by high-teens volume growth and an expansion in Ebit margins of 280 basis points to 15.1 per cent. The Fast-Moving Electrical Goods (FMEG) segment saw growth of 48 per cent Y-o-Y, albeit with modest Ebit margins of 0.5 per cent. 

 

 

Nuvama said, “We believe Polycab remains on the right growth trajectory by outperforming the industry. We reckon revenue/Ebitda/PAT CAGR of 19 per cent/21 per cent/21 per cent over FY25–28E, valuing the stock at 40x on Dec-26E, yielding a target price of ₹9,070 (earlier ₹8,580), maintain ‘Buy’.”

 

Centrum Broking also underlined the company’s strong performance, stating that Polycab witnessed 18 per cent Y-o-Y revenue growth, a robust Ebitda margin at 15.8 per cent, and a 56 per cent Y-o-Y jump in PAT to ₹690 crore, exceeding both their and the consensus estimate of ₹610 crore. Revenue of ₹6,480 crore was led by the W&C segment, which rose 19 per cent Y-o-Y to ₹5,690 crore, aided by higher government and private capex as well as rising commodity prices. FMEG sales grew 14 per cent Y-o-Y to ₹450 crore. Gross margins expanded 350 basis points Y-o-Y to 27.1 per cent, while Ebitda margins increased 430 basis points Y-o-Y to 15.8 per cent, driven by strong margins in the W&C business. ‘

 

Centrum said, “Polycab continues to deliver all-round performance and is outperforming its five-year Project Spring guidance on both growth and margin fronts. With H2 expected to be better than H1, FY26 would be the third year in a row of ~25 per cent topline growth. Factoring the solid performance in Q2FY26, we increase our EPS for FY26E/27E/28E by 10 per cent/7 per cent/7 per cent. Retain ‘Buy’ with a revised target of ₹9,055 (₹8,430 earlier) based on 40x H1 FY28 EPS.”

 

Polycab India Q2 show

 

Polycab’s Q2 performance was supported by broad-based growth across its business segments. The W&C business achieved 21 per cent Y-o-Y growth for the quarter, driven by sustained demand momentum across both government and private sectors, with domestic business growing 21 per cent Y-o-Y. The international business contributed 6.5 per cent to consolidated revenues and grew 25 per cent Y-o-Y. Ebit margins expanded by around 270 basis points Y-o-Y and 40 basis points quarter-on-quarter (Q-o-Q) to 15.1 per cent, aided by operating leverage and a favourable business mix.

 

The FMEG segment maintained steady growth, registering 14 per cent Y-o-Y revenue growth during the quarter, while the EPC segment reported revenues of ₹402.4 crore, down 19 per cent Y-o-Y, with Ebit increasing 42 per cent Y-o-Y. Consolidated Ebitda increased by 62 per cent Y-o-Y and 19 per cent Q-o-Q, and PAT grew 56 per cent Y-o-Y, with PAT margins improving by 260 basis points Y-o-Y and 50 basis points Q-o-Q to 10.7 per cent.

 

Inder T Jaisinghani, chairman and managing director, Polycab India Limited, said, “Our performance in Q2FY26 marks another strong step forward in Polycab’s growth journey. We delivered our highest-ever second quarter and half yearly revenue and profitability, reflecting the continued strength of our core Wires & Cables business and the improving traction in the FMEG business. The domestic demand environment remains healthy, supported by government infrastructure spending and improving private capex sentiment, while our international business continues to scale steadily. As we advance on our Project Spring agenda, we remain committed to driving industry-leading growth and creating long-term value for all stakeholders.”

 

That said, analysts indicate that Polycab’s Q2 performance reinforces its growth trajectory, with strong fundamentals, robust margins, and healthy demand visibility positioning it well for the remainder of FY26