Polycab India Ltd. (POLYCAB) AI Stock Analysis

• Market Cap: ₹1.14T
• Dividend Yield: 0.47%
• Average Volume (3M): 8.71K
• Price to Earnings (P/E): 46.2
• Beta (1Y): 0.98
• Revenue Growth: 22.25%
• EPS Growth: 36.99%
• Country: IN
• Employees: 4,843
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Electrical Equipment & Parts
• EPS (TTM): 45.46
• Shares Outstanding: 150,532,150
• 10 Day Avg. Volume: 8,734
• 30 Day Avg. Volume: 8,706
• PEG Ratio: 2.94
• Price to Book (P/B): 7.84
• Price to Sales (P/S): 3.44
• P/FCF Ratio: 91.83
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹8,224.00
• Price Target Upside: 10.14% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ₹8,467.00 ▲(13.40% Upside)

Polycab India Ltd. demonstrates strong financial health and positive technical indicators, positioning it well in the Electrical Equipment & Parts industry. However, the high P/E ratio and declining free cash flow growth are concerns that temper the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth showcases Polycab's expanding market presence and effective product offerings, supporting long-term business stability.

Balance Sheet Health

A strong balance sheet with low leverage reduces financial risk, providing Polycab with flexibility for future investments and growth.

Profit Margins

Healthy profit margins reflect efficient cost management and pricing power, contributing to sustainable profitability over time.

Negative Factors

Declining Free Cash Flow

A decline in free cash flow growth could impact liquidity and limit the company's ability to invest in new opportunities or weather downturns.

Net Profit Margin

While stable, the net profit margin indicates potential inefficiencies, suggesting the need for improved cost controls to enhance profitability.

Cash Flow Conversion

The cash flow conversion ratio, while healthy, indicates that not all earnings are efficiently converted into cash, which may affect liquidity.

Polycab India Ltd. Business Overview & Revenue Model

Company Description

Polycab India Limited manufactures and sells wires and cables under the POLYCAB brand in India and internationally. The company offers rubber cable, fire survival cables, and wires. It also provides ceiling, table, pedestal, wall, exhaust, farrata, and air circulated fans. In addition, the company provides lighting and luminaires, touch switches, modular plates, switches, and accessories, and switchgear consisting of isolators, MCB, RCCB, RCBO, DB, ACCL, and MCB changeover switches. Further, the company offers solar grid tie inverter, DC MCB, solar DC cable, and solar panels; UPVC conduit and concealed box; and self-priming monobloc, centrifugal monobloc, borewell submersible, domestic openwell submersible, and jet pumps, as well as submersible flat and round cables. Additionally, it provides water heaters, coolers, and iron appliances. Furthermore, the company engages in the design, engineering, supply, execution, and commissioning of power distribution, transmission, and rural electrification projects. It operates a distribution network of 3,464 authorized dealers and distributors; and 100,000 retail outlets. Polycab India Limited was incorporated in 1996 and is based in Mumbai, India.

How the Company Makes Money

Polycab generates revenue primarily through the sale of its extensive range of wires, cables, and electrical products. The company's revenue model is centered on manufacturing and distributing high-quality electrical goods, which are sold through a vast network of distributors and retailers. Key revenue streams include the sales of various types of cables, such as power cables, telecom cables, and specialty cables, along with electrical accessories and solutions. Additionally, Polycab benefits from strong brand recognition and customer loyalty, which contributes to consistent sales growth. The company engages in strategic partnerships with various distributors and retailers, enhancing its market reach. Factors such as increasing urbanization, rising infrastructure development projects, and a growing focus on renewable energy solutions further bolster its earnings potential.

Polycab India Ltd. Financial Statement Overview

Summary

Polycab India Ltd. demonstrates a strong financial position with robust revenue growth, healthy profit margins, low financial leverage, and exceptional cash flow performance. The company's financial health is well-aligned with industry standards, positioning it for continued success.

Income Statement

Polycab India Ltd. has shown robust revenue growth, with a notable increase from ₹122.04 billion in 2022 to ₹236.16 billion TTM. Gross profit and net income margins are strong, with a gross profit margin of 25.28% and a net profit margin of 9.38% TTM. The company has managed impressive EBIT and EBITDA margins, demonstrating operational efficiency. Overall, the income statement reflects a healthy growth trajectory and profitability.

Balance Sheet

The balance sheet is strong, with a low debt-to-equity ratio of 0.02 TTM, indicating low financial leverage and reliance on equity financing. The equity ratio stands at 66.11%, reflecting a stable financial position. Return on equity is a solid 21.26% TTM, showcasing effective utilization of shareholders' investments. The company's assets have been growing, indicating a healthy expansion.

Cash Flow

Cash flow performance is exceptional, with a significant increase in free cash flow from ₹0.16 billion in 2022 to ₹19.61 billion TTM. Operating cash flow to net income ratio is 1.38, illustrating strong cash conversion. The company has been efficient in its capital expenditures, supporting its growth without compromising cash reserves. This robust cash flow profile ensures financial flexibility.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	236.16B	224.08B	180.39B	141.08B	122.04B	87.92B
Gross Profit	59.71B	55.40B	47.30B	35.77B	27.13B	22.56B
EBITDA	32.16B	29.43B	24.71B	18.38B	12.52B	10.98B
Net Income	22.16B	20.20B	17.84B	12.71B	9.09B	8.82B
Balance Sheet
Total Assets	157.65B	137.73B	120.79B	94.25B	74.12B	70.15B
Cash, Cash Equivalents and Short-Term Investments	29.61B	25.45B	22.34B	20.50B	11.71B	11.54B
Total Debt	2.05B	2.40B	20.23B	1.91B	1.18B	2.83B
Total Liabilities	52.53B	38.66B	38.36B	27.57B	18.43B	22.42B
Stockholders Equity	104.23B	98.25B	81.87B	66.31B	55.44B	47.54B
Cash Flow
Free Cash Flow	19.61B	8.39B	4.38B	9.48B	-150.82M	10.45B
Operating Cash Flow	30.63B	18.09B	12.96B	14.28B	5.12B	12.38B
Investing Cash Flow	-25.14B	-12.39B	-7.52B	-12.03B	-4.27B	-10.12B
Financing Cash Flow	-6.11B	-6.28B	-3.87B	-2.24B	-2.01B	-1.61B

Polycab India Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7466.55
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:POLYCAB, the sentiment is Neutral. The current price of 7466.55 is below the 20-day moving average (MA) of 7592.88, below the 50-day MA of 7564.92, and above the 200-day MA of 6453.91, indicating a neutral trend. The MACD of -21.63 indicates Positive momentum. The RSI at 44.40 is Neutral, neither overbought nor oversold. The STOCH value of 38.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:POLYCAB.

Polycab India Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
POLYCAB	72 Outperform	₹1.14T	46.23	―	0.47%	22.25%	36.99%
HAVELLS	66 Neutral	₹932.25B	63.70	―	0.69%	7.26%	3.66%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
VOLTAS	61 Neutral	₹449.95B	69.48	―	0.51%	-1.46%	-1.15%
ORIENTELEC	60 Neutral	₹45.68B	51.91	―	0.77%	6.63%	42.16%
BAJAJELEC	57 Neutral	₹56.42B	54.67	―	0.62%	0.80%	-4.31%
CROMPTON	57 Neutral	₹182.45B	34.65	―	1.13%	0.73%	-5.88%

Polycab India Ltd. Corporate Events

Polycab India Limited Releases Q2 FY 2026 Earnings Call Transcript

Polycab India Limited has submitted the transcript of its Q2 FY 2026 Earnings Conference Call to the stock exchanges, following SEBI regulations. This submission reflects the company’s commitment to transparency and keeping stakeholders informed about its financial performance and strategic direction.

Polycab India Allots Shares Under Employee Stock Option Scheme

Polycab India Ltd. has announced the allotment of 5,980 equity shares to eligible employees under its Employee Stock Option Scheme 2018. This move is part of the company’s ongoing efforts to incentivize and retain talent, potentially enhancing employee satisfaction and aligning their interests with corporate goals.

Polycab India Secures Favorable Tax Appeal Outcome

Polycab India Limited has announced that the Commissioner of Income Tax (Appeals) has accepted the majority of the company’s appeals concerning tax assessments for the years 2014-15 to 2023-24. This decision is expected to substantially reduce the company’s income tax demands, positively impacting its financial operations.