Polycab India Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Polycab India Ltd filed with BSE on 20 Jul 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Polycab reported consolidated revenue growth of 39% year-on-year for Q1 FY27, with EBITDA up 32% and PAT reaching a quarterly high of INR 7,967 million, up 33% year-on-year. Wires & Cables grew 39% with wires outpacing cables and channel sales outperforming institutional sales, while FMEG grew 71% led by the solar category, marking the tenth consecutive quarter of outperforming industry growth. Management described a decline in the international business due to Middle East disruptions, an improved working capital cycle of 15 days aided by letter-of-credit usage, and continued execution of the Bharat Net and RDSS EPC orders.
Numbers mentioned
Revenue growth: 39% year-on-year (Q1 FY27)
p. 4
“Consolidated revenues grew by 39% year-on-year, supported by sustained momentum across both our wires and cables and FMEG businesses.”
Shashank Yagnick, page 4 of the filed PDF · View the filing
EBITDA growth and margin: 32% growth, 13.8% margin (Q1 FY27)
p. 4
“EBITDA increased by 32% year-on-year and the margins stood at 13.8%, reflecting an improvement of approximately 70 basis points sequentially over the previous quarter.”
Shashank Yagnick, page 4 of the filed PDF · View the filing
Profit After Tax: INR 7,967 million, 33% growth (Q1 FY27)
p. 4
“we achieved our highest ever quarterly Profit After Tax of INR 7,967 million, representing a growth of 33% year-on-year.”
Shashank Yagnick, page 4 of the filed PDF · View the filing
PAT margin: 9.7% (Q1 FY27)
p. 5
“PAT margins for the quarter came in at 9.7%.”
Shashank Yagnick, page 5 of the filed PDF · View the filing
Finance costs: INR 800 million (Q1 FY27)
p. 5
“Finance costs for the quarter were INR 800 million, while other income stood at INR 1,049 million.”
Shashank Yagnick, page 5 of the filed PDF · View the filing
Net cash position: INR 39.9 billion (Q1 FY27)
p. 5
“Our balance sheet continues to remain strong with a net cash position of INR 39.9 billion.”
Shashank Yagnick, page 5 of the filed PDF · View the filing
Working capital cycle: 15 days (Q1 FY27)
p. 5
“The average working capital cycle improved significantly to 15 days in Quarter 1 Financial Year 2027, aided by a temporary increase in payable days due to the use of letter of credit for raw material procurement.”
Shashank Yagnick, page 5 of the filed PDF · View the filing
Capital expenditure: INR 3.2 billion (Q1 FY27)
p. 5
“Capital expenditure during the quarter amounted to INR 3.2 billion, reflecting our continued commitment to building capacity and strengthening future growth drivers.”
Shashank Yagnick, page 5 of the filed PDF · View the filing
Wires & Cables segment growth: 39% year-on-year (Q1 FY27)
p. 5
“The Wires & Cables segment registered a healthy 39% year-on-year growth during the quarter.”
Shashank Yagnick, page 5 of the filed PDF · View the filing
Domestic Wires & Cables growth: 43% year-on-year (Q1 FY27)
p. 5
“the domestic Wires & Cables business delivered an impressive 43% year-on-year growth, supported by robust market demand, effective execution across key channels and favourable commodity-linked realizations.”
Shashank Yagnick, page 5 of the filed PDF · View the filing
Wires & Cables EBIT margin: 13.3% (Q1 FY27)
p. 5
“EBIT margins for the Wires & Cables business stood at 13.3%.”
Shashank Yagnick, page 5 of the filed PDF · View the filing
FMEG segment growth: 71% year-on-year (Q1 FY27)
p. 5
“The FMEG segment delivered another outstanding quarter, recording 71% year-on-year growth with strong contributions across all product categories.”
Shashank Yagnick, page 5 of the filed PDF · View the filing
FMEG EBIT margin: 8% (Q1 FY27)
p. 6
“EBIT margins for the quarter were 8%, very much in line with the milestones laid out under Project Spring, where we target EBITDA margins of 8% to 10% by FY 2030.”
Shashank Yagnick, page 6 of the filed PDF · View the filing
EPC revenue: INR 3,077 million, decline of 11% year-on-year (Q1 FY27)
p. 6
“The EPC business reported revenues of INR 3,077 million during the Quarter 1 Financial Year 2027, reflecting a year-on-year decline of 11%, primarily due to the timing and execution cycle of projects.”
Shashank Yagnick, page 6 of the filed PDF · View the filing
EPC profitability: INR 338 million, 11% margin (Q1 FY27)
p. 6
“Despite the lower revenue base, profitability remained healthy at INR 338 million, translating into a margin of 11%.”
Shashank Yagnick, page 6 of the filed PDF · View the filing
Price revision in wires and cables: 3% to 4% (July 2026)
p. 13
“I think about 3% to 4%.”
Shashank Yagnick, page 13 of the filed PDF · View the filing
Bharat Net and RDSS combined order book: INR 10,900 crores
p. 14
“overall, put together, Bharat Net and RDSS, the order book stands at around INR 10,900 crores.”
Shashank Yagnick, page 14 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Wires & Cables EBIT margin — 11% to 13% · medium to long term
stated firmly by Shashank Yagnick
p. 5
“Consistent with our Project Spring roadmap, we continue to maintain our medium- to long-term margin guidance of 11% to 13% for this business.”
Shashank Yagnick, page 5 of the filed PDF · View the filing
FMEG EBITDA margin — 8% to 10% · by FY 2030
stated firmly by Shashank Yagnick
p. 6
“EBIT margins for the quarter were 8%, very much in line with the milestones laid out under Project Spring, where we target EBITDA margins of 8% to 10% by FY 2030.”
Shashank Yagnick, page 6 of the filed PDF · View the filing
FMEG growth versus industry — 1.5x to 2x of industry growth
stated firmly by Shashank Yagnick
p. 6
“Our strategic priorities remain unchanged to grow at 1.5x to 2x of the industry growth while progressively enhancing profitability.”
Shashank Yagnick, page 6 of the filed PDF · View the filing
EPC operating margin — high single-digit range · medium to long term
stated firmly by Shashank Yagnick
p. 6
“Over the medium to long term, we continue to expect sustainable operating margins for the EPC business to remain in the high single-digit range.”
Shashank Yagnick, page 6 of the filed PDF · View the filing
Working capital cycle — 45 to 50 days
stated firmly by Shashank Yagnick
p. 5
“As these effects normalize, we expect the working capital cycle to settle within our long-term operating range of 45 to 50 days.”
Shashank Yagnick, page 5 of the filed PDF · View the filing
Overall volume/value growth versus market — 1.5x of market growth · until FY30
stated firmly by Shashank Yagnick
p. 18
“We have guided that we'll continue to grow at 1.5x of market growth. And we still believe in that, and we have delivered that in the last 1-1.5 years ever since we have made that commitment. And we believe that will continue to happen until FY30.”
Shashank Yagnick, page 18 of the filed PDF · View the filing
Bharat Net revenue contribution — INR 800 crores to INR 1,000 crores · this year
stated conditionally by Shashank Yagnick
p. 14
“We have started the execution sometime in last quarter in March. So we can safely say maybe 1/3rd of that should translate into revenue, maybe INR 800 crores to INR 1,000 crores may come from Bharat Net alone.”
Shashank Yagnick, page 14 of the filed PDF · View the filing
RDSS revenue contribution — INR 800-odd crores · this year
stated conditionally by Shashank Yagnick
p. 14
“And again, in case of RDSS, since the execution piece is around 3 years, we should expect about INR 800-odd crores translating this year.”
Shashank Yagnick, page 14 of the filed PDF · View the filing
Export contribution to overall topline — north of 10% of overall top line · by 2030
stated as an aspiration by Shashank Yagnick
p. 19
“We have given our guidance of going north of 10% of our overall top line by 2030.”
Shashank Yagnick, page 19 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management gave volume growth details but declined to guide on future copper-linked pricing, describing it as a cost-plus pass-through model.
Answered by Shashank Yagnick
Asked by Aniruddha Joshi: What were price hikes and volume growth this quarter, and how will copper prices affect Q2 pricing?
p. 7
“It's like you are aware, it's a cost-plus model. So whatever is the cost, we'll pass it on, and we'll continue to focus on the business.”
Shashank Yagnick, page 7 of the filed PDF · View the filing
Management sized the data centre cable opportunity at INR 20,000-25,000 crores over 6-8 years and said export momentum was returning after Middle East disruption.
Answered by Shashank Yagnick
Asked by Sonali Salgaonkar: What is the data centre and optic fibre opportunity, and what drove the export decline?
p. 7
“a INR 20,000 to 25,000 crores market is there, but that's over a period of maybe 6-8 years.”
Shashank Yagnick, page 7 of the filed PDF · View the filing
Management said fibre for the execution period had already been secured, insulating them from price increases, and attributed the EPC dip to milestone timing.
Answered by Shashank Yagnick
Asked by Pulkit Patni: How will rising fibre prices affect Bharat Net profitability, and why was EPC revenue weak?
p. 8
“the strength of our procurement is such that we have been able to secure the fibre for the execution period, which is next 2 to 3 years.”
Shashank Yagnick, page 8 of the filed PDF · View the filing
Management said quarterly volumes fluctuate with base effects but reiterated the target of growing 1.5x of market growth over a longer period.
Answered by Shashank Yagnick
Asked by Akshay Gattani: How should full-year volume growth be viewed given varying quarterly bases?
p. 9
“we have always guided that we will do 1.5x of market growth, which is a mix of both volume and value.”
Shashank Yagnick, page 9 of the filed PDF · View the filing
Management avoided calling it suboptimal but confirmed stocking came in below expectation due to falling copper and aluminium prices.
Answered by Shashank Yagnick
Asked by Achal Lohade: Was channel stocking suboptimal this quarter given falling commodity prices?
p. 12
“below expectation is a better way to put it.”
Shashank Yagnick, page 12 of the filed PDF · View the filing
Management confirmed a price revision of 3-4% and attributed FMEG margin gains to operating leverage and higher premium product mix.
Answered by Shashank Yagnick
Asked by Ashish Kanodia: Was there a price cut in early July and how did FMEG margin improve?
p. 13
“I think we have taken some price correction or rather price revision in the first fortnight, and we will see the translation into volumes gradually.”
Shashank Yagnick, page 13 of the filed PDF · View the filing
Management agreed the data centre opportunity's near-term impact was limited but disagreed on T&D, citing rising circuit kilometre targets and transformer company order books.
Answered by Shashank Yagnick
Asked by Naushad Chaudhary: Can data centre and T&D capacity additions meaningfully move industry growth given their small base relative to TAM?
p. 16
“if the addition only happens 1 gigawatt, then obviously, the translation to cable and wire requirement of the market will not be substantial. And I'm completely agreeing with you.”
Shashank Yagnick, page 16 of the filed PDF · View the filing
Management said the guidance remains through FY30 with quarterly seasonality, and the recent quarter reflects a good trajectory rather than a change in the long-term target.
Answered by Shashank Yagnick
Asked by Keyur Pandya: Is the current FMEG margin sustainable or a one-off, given it already matches the FY30 target?
p. 19
“our guidance we have given clearly till FY30, quarter-on-quarter based on seasonality.”
Shashank Yagnick, page 19 of the filed PDF · View the filing
Risks flagged
Geopolitical disruptions around the Strait of Hormuz contributing to inflationary pressure and energy market volatility
p. 3
“Disruptions across energy markets and global trade routes, particularly around the Strait of Hormuz contributed to inflationary pressures during the first half of 2026.”
Niyant Maru, page 3 of the filed PDF · View the filing
Continued uncertainty in energy, supply chain and trade flows
p. 3
“Given the fluid nature of the geopolitical environment, uncertainty around the energy crisis, supply chains and global trade flows may persist in the near term.”
Niyant Maru, page 3 of the filed PDF · View the filing
Decline in international business due to geopolitical developments
p. 5
“Our international business witnessed a decline on Y-o-Y basis, reflecting the impact of near-term geopolitical developments.”
Shashank Yagnick, page 5 of the filed PDF · View the filing
Middle East export disruption impacting margins
p. 12
“This quarter, again, the effect of West Asia gradually phasing out or at least I don't know, at least till last week, the effect was reducing or going in the right direction of resolution.”
Shashank Yagnick, page 12 of the filed PDF · View the filing
Renewed Iran-U.S. tensions resurfacing
p. 18
“Again, last week, it's resurfaced between Iran and U.S.”
Shashank Yagnick, page 18 of the filed PDF · View the filing
Channel destocking linked to falling copper and aluminium prices
p. 12
“So I think as soon as price tends to go up, the stocking happens. If price comes down, destocking happens.”
Shashank Yagnick, page 12 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.