Polycab India Ltd. (POLYCAB) AI Stock Analysis

• Market Cap: ₹1.16T
• Dividend Yield: 0.46%
• Average Volume (3M): 8.71K
• Price to Earnings (P/E): 47.0
• Beta (1Y): 0.95
• 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: 150,538,470
• 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: 5.41% 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 ▲(8.53% 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. shows strong financial performance with consistent revenue growth and healthy profit margins. The balance sheet is robust with low leverage, and the return on equity is impressive. However, the decline in free cash flow growth is a concern that needs monitoring.

Income Statement

Polycab India Ltd. demonstrates strong financial performance with consistent revenue growth, evidenced by a 4.13% increase in TTM revenue. The company maintains healthy profit margins, with a gross profit margin of 25.28% and a net profit margin of 9.38% for the TTM. The EBIT and EBITDA margins are also robust at 12.38% and 13.62%, respectively, indicating efficient operational management. Overall, the income statement reflects a stable and growing business, though there is room for improvement in net profit margin.

Balance Sheet

The balance sheet of Polycab India Ltd. is strong, with a low debt-to-equity ratio of 0.0196, indicating minimal leverage and financial risk. The return on equity is impressive at 23.38%, showcasing effective use of shareholder funds to generate profits. The equity ratio stands at 61.70%, reflecting a solid capital structure with a significant portion of assets financed by equity. This financial stability positions the company well for future growth and investment opportunities.

Cash Flow

The cash flow statement presents a mixed picture. While the operating cash flow to net income ratio is healthy at 0.63, indicating good cash generation from operations, the free cash flow growth has declined by 46.63% in the TTM, which could be a concern for future liquidity. The free cash flow to net income ratio of 0.64 suggests that a significant portion of earnings is converted into free cash flow, but the recent decline in free cash flow growth needs to be monitored.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	621.33B	224.08B	180.39B	141.08B	122.04B	87.92B
Gross Profit	141.63B	55.40B	47.30B	35.77B	27.13B	22.56B
EBITDA	94.48B	29.43B	24.71B	18.38B	12.52B	10.98B
Net Income	62.95B	20.20B	17.84B	12.71B	9.09B	8.82B
Balance Sheet
Total Assets	171.71B	137.73B	120.79B	94.25B	74.12B	70.15B
Cash, Cash Equivalents and Short-Term Investments	27.96B	25.45B	22.34B	20.50B	11.71B	11.54B
Total Debt	2.23B	2.40B	20.23B	1.91B	1.18B	2.83B
Total Liabilities	64.80B	38.66B	38.36B	27.57B	18.43B	22.42B
Stockholders Equity	105.94B	98.25B	81.87B	66.31B	55.44B	47.54B
Cash Flow
Free Cash Flow	27.69B	8.39B	4.38B	9.48B	-150.82M	10.45B
Operating Cash Flow	57.38B	18.09B	12.96B	14.28B	5.12B	12.38B
Investing Cash Flow	-22.17B	-12.39B	-7.52B	-12.03B	-4.27B	-10.12B
Financing Cash Flow	-22.99B	-6.28B	-3.87B	-2.24B	-2.01B	-1.61B

Polycab India Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7801.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 7801.75 is above the 20-day moving average (MA) of 7551.08, above the 50-day MA of 7517.71, and above the 200-day MA of 6768.62, indicating a bullish trend. The MACD of 99.61 indicates Negative momentum. The RSI at 54.94 is Neutral, neither overbought nor oversold. The STOCH value of 66.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	₹1.16T	46.97	―	0.46%	22.25%	36.99%
HAVELLS	66 Neutral	₹919.24B	62.81	―	0.70%	7.26%	3.66%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
VOLTAS	61 Neutral	₹485.18B	88.55	―	0.50%	-1.46%	-1.15%
ORIENTELEC	60 Neutral	₹35.99B	40.90	―	0.82%	6.63%	42.16%
BAJAJELEC	57 Neutral	₹53.34B	51.68	―	0.62%	0.80%	-4.31%
CROMPTON	57 Neutral	₹162.23B	34.31	―	1.16%	0.73%	-5.88%

Polycab India Ltd. Corporate Events

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.

Polycab India to Engage with Investors in December Meetings

Polycab India Limited has announced its participation in several upcoming investor and analyst meetings, including the Goldman Sachs 17th Annual Industrials & Autos Week and a non-deal roadshow. These meetings, scheduled for December 2025, aim to engage institutional investors and analysts, sharing corporate and earnings presentations to enhance stakeholder relations and market positioning.

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.