Polycab India Ltd. (POLYCAB) AI Stock Analysis

• Market Cap: ₹1.08T
• Dividend Yield: 0.46%
• Average Volume (3M): 8.71K
• Price to Earnings (P/E): 46.1
• Beta (1Y): 1.22
• 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): 41.19
• Shares Outstanding: 150,550,500
• 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: ₹9,600.00
• Price Target Upside: 23.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 181.55
• Revenue Forecast (FY): ₹288.11B

• Rating: 68 Neutral
• Price Target: ₹8,970.00 ▲(14.97% Upside)
• Action: Downgraded Date: 01/18/26
• Date: Action: Downgraded 01/18/26

The score is anchored by strong financial performance (high profitability, very low leverage, strong ROE), but is meaningfully tempered by weak technical momentum (below key moving averages with negative MACD) and a relatively expensive valuation (high P/E with low yield).

Positive Factors

Conservative balance sheet

Extremely low debt-to-equity (~0.02) and a conservative balance sheet give Polycab durable financial flexibility. This reduces default and refinancing risk, supports counter-cyclical capital spending, and enables funding for capacity expansion or M&A without materially increasing leverage over the next 2–6 months.

Strong and stable margins

Consistently healthy gross (~23.9%) and net (~10.0%) margins plus solid operating (EBIT) and EBITDA margins indicate durable pricing power and cost control in core cables and FMEG. These margin levels support sustained earnings generation and reinvestment capacity across normal business cycles.

Diversified product & channel mix

Polycab's mix—leading wires/cables plus branded FMEG sold via a broad distribution and retail network—reduces reliance on any single end market. This product and channel diversification supports steadier revenue across residential, commercial, industrial and infrastructure demand drivers over the medium term.

Negative Factors

Inconsistent cash conversion

Volatile free cash flow and FCF covering only ~48% of net income mean reported profits do not consistently convert to distributable cash. This weakens ability to sustainably fund dividends, rapid capacity additions or absorb working-capital shocks without drawing on cash or raising external financing.

Raw-material price exposure

Significant exposure to copper and aluminium price swings creates persistent margin risk because raw-material cost spikes can outpace pass-through to customers. Over 2–6 months, volatile metal markets can erode profitability and require active procurement or hedging to protect margins.

Rapid asset expansion raises execution risk

Fast asset and equity expansion increases the need for disciplined capital allocation. If new capacity or working-capital deployments underperform, ROE and margin profiles could deteriorate, making current strong returns contingent on near-term execution and demand realization.

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 makes money primarily by manufacturing and selling (1) wires and cables and (2) FMEG electrical products. Revenue is generated from the sale of finished goods through two main routes: (a) channel/distribution-led sales, where products are sold via dealers, distributors, retailers, and electrical wholesalers to contractors, electricians, and end consumers; and (b) institutional and project sales, where the company supplies cables and electrical products directly to businesses, utilities, infrastructure developers, EPC contractors, and other large customers for industrial and infrastructure projects. Wires and cables typically contribute the largest share of revenue, driven by demand from building construction, power transmission and distribution, industrial capex, and infrastructure build-outs; earnings in this segment are influenced by volumes and by input costs and pricing dynamics tied largely to metals (e.g., copper and aluminium). The FMEG segment adds revenue through branded, higher-value electrical products (such as fans, lighting, switches/switchgear and related items) that are sold through the retail channel; performance here depends on brand strength, product mix, distribution reach, and marketing/trade incentives. Additional contributing factors to earnings include the company’s ability to scale its manufacturing footprint, manage raw-material procurement and working capital, and expand its distribution and product portfolio; specific material partnerships, if any, are null.

Polycab India Ltd. Financial Statement Overview

Summary

Strong fundamentals supported by solid TTM revenue growth (~9.7%), healthy profitability (~23.9% gross margin, ~10.0% net margin), and an exceptionally conservative balance sheet (debt-to-equity ~0.02) with high ROE (~24.7%). The key offset is cash-flow quality: while TTM FCF improved, it has been volatile historically and TTM FCF is only ~48% of net income.

Income Statement

TTM (Trailing-Twelve-Months) revenue grew ~9.7% with solid profitability: ~23.9% gross margin and ~10.0% net margin. Operating profitability is healthy with ~13.6% EBIT margin and ~14.9% EBITDA margin. Versus recent annual results, margins have been broadly stable to slightly softer at the gross line, but net margin remains strong and earnings have scaled well with revenue over the last several years.

Balance Sheet

Balance sheet is conservatively positioned with very low leverage in TTM (Trailing-Twelve-Months) (debt-to-equity ~0.02), supporting financial flexibility. Returns are strong with return on equity ~24.7% TTM (Trailing-Twelve-Months), up from low-20%s in recent years. Key watch-out: total assets have expanded quickly alongside equity, so sustaining high returns depends on continued efficient capital deployment.

Cash Flow

Cash generation improved meaningfully in TTM (Trailing-Twelve-Months): operating cash flow (~30.5B) and free cash flow (~18.1B) are both higher, with free cash flow up sharply. However, cash conversion is less consistent across years: free cash flow has swung (including a negative year in FY22), and in TTM (Trailing-Twelve-Months) free cash flow covers only ~48% of net income, indicating profits are not fully translating into free cash after working-capital and investment needs.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	269.80B	224.08B	180.39B	141.08B	122.04B	87.92B
Gross Profit	58.28B	55.40B	47.30B	35.77B	27.13B	22.56B
EBITDA	39.61B	29.43B	24.71B	18.38B	12.52B	10.98B
Net Income	26.26B	20.20B	17.84B	12.71B	9.09B	8.82B
Balance Sheet
Total Assets	189.97B	137.73B	120.79B	94.25B	74.12B	70.15B
Cash, Cash Equivalents and Short-Term Investments	31.31B	25.45B	22.34B	20.50B	11.71B	11.54B
Total Debt	2.37B	2.40B	20.23B	1.91B	1.18B	2.83B
Total Liabilities	76.71B	38.66B	38.36B	27.57B	18.43B	22.42B
Stockholders Equity	112.20B	98.25B	81.87B	66.31B	55.44B	47.54B
Cash Flow
Free Cash Flow	18.14B	8.39B	4.38B	9.48B	-150.82M	10.45B
Operating Cash Flow	30.45B	18.09B	12.96B	14.28B	5.12B	12.38B
Investing Cash Flow	-22.07B	-12.39B	-7.52B	-12.03B	-4.27B	-10.12B
Financing Cash Flow	-5.92B	-6.28B	-3.87B	-2.24B	-2.01B	-1.61B

Polycab India Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7801.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:POLYCAB, the sentiment is Negative. The current price of 7801.75 is below the 20-day moving average (MA) of 7900.51, above the 50-day MA of 7618.64, and above the 200-day MA of 7244.51, indicating a bearish trend. The MACD of -141.20 indicates Positive momentum. The RSI at 37.74 is Neutral, neither overbought nor oversold. The STOCH value of 14.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	68 Neutral	₹1.08T	46.12	―	0.46%	22.25%	36.99%
HAVELLS	66 Neutral	₹812.64B	74.21	―	0.70%	7.26%	3.66%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
VOLTAS	61 Neutral	₹446.25B	132.41	―	0.50%	-1.46%	-1.15%
ORIENTELEC	60 Neutral	₹35.08B	36.16	―	0.82%	6.63%	42.16%
BAJAJELEC	59 Neutral	₹38.94B	-40.37	―	0.62%	0.80%	-4.31%
CROMPTON	57 Neutral	₹155.92B	41.30	―	1.16%	0.73%	-5.88%

Polycab India Ltd. Corporate Events

Polycab Plans One-on-One Investor Meet With PineBridge in Mumbai

Polycab India Limited has scheduled a physical one-on-one meeting with institutional investor PineBridge in Mumbai on March 11, 2026, under the SEBI disclosure framework. During this interaction, the company will restrict itself to corporate and earnings presentations already hosted on its website and other publicly available information, signaling routine investor engagement without dissemination of unpublished price-sensitive data.

Polycab Plans Series of March Investor Meets With Global and Domestic Institutions

Polycab India Limited has scheduled a series of meetings and investor conferences with institutional investors and analysts in early March 2026, including one-on-one sessions with Trinity Street Asset Management and Balyasny Asset Management in Mumbai. The company will also participate in virtual and group formats with firms such as Ambit Capital, Nirmal Bang, Jetha Global, and Arihant Capital, where it will restrict discussions to its existing corporate and earnings presentations and other publicly available information, underscoring a focus on transparent investor engagement without sharing unpublished price-sensitive data.

These engagements signal Polycab’s ongoing effort to maintain active communication with key market participants and reinforce its profile within the investment community. For stakeholders, the concentrated schedule of interactions may enhance market understanding of the company’s performance and strategy, potentially influencing investor perception and trading activity, while remaining compliant with disclosure regulations.

Polycab Shareholders Clear Board and Leadership Resolutions via Postal Ballot

Polycab India Ltd. has reported the results of a postal ballot e-voting process, confirming shareholder approval of several key board and management resolutions. The company disclosed that all items on the ballot secured the requisite majority as of the e-voting end date of 22 February 2026.

Shareholders endorsed the re-appointment of independent director Manju Agarwal for a second term, reinforcing board continuity and governance oversight. They also approved the change in designation and five-year re-appointment of Bharat A. Jaisinghani and Nikhil R. Jaisinghani as joint managing directors, signaling a consolidation of executive leadership and long-term management stability.

Polycab Lines Up Series of Investor and Analyst Meetings Through February 2026

Polycab India Ltd has announced a detailed schedule of meetings and conference appearances with institutional investors and equity analysts spanning late January to late February 2026, including one-on-one and group interactions with major global and domestic funds and brokerage-hosted investor conferences. The company said these engagements, to be held in both virtual and physical formats in Mumbai and at various investor events, will rely solely on its existing corporate and earnings presentations and other publicly available information, underscoring its ongoing investor-relations outreach and efforts to maintain transparency and engagement with key capital-market stakeholders.

Polycab Sets January 16 Earnings Call for Q3 FY26 Results

Polycab India Limited has scheduled the announcement of its financial results for the third quarter ended 31 December 2025 on 16 January 2026, followed by an earnings conference call for investors and analysts the same day at 4:00 p.m. IST. During the hour-long call, the management will discuss quarterly performance and take questions, with an audio recording and transcript to be made available later on the company’s investor relations website, underscoring Polycab’s ongoing emphasis on transparent communication with capital markets participants.