Polycab India Ltd. (POLYCAB) AI Stock Analysis

• Market Cap: ₹1.22T
• Dividend Yield: 0.46%
• Average Volume (3M): 8.71K
• Price to Earnings (P/E): 46.5
• Beta (1Y): 1.13
• 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: 150,549,420
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 180.8
• Revenue Forecast (FY): ₹287.69B

• Rating: 68 Neutral
• Price Target: ₹9,102.00 ▲(16.67% 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

An exceptionally conservative balance sheet with debt-to-equity around 0.02 provides durable financial flexibility. Low leverage reduces refinancing and interest-rate risks, supporting capacity to fund capex, project bids or absorb cyclical demand shocks across the next several months.

Strong profitability and returns

Sustained mid- to high-single-digit revenue growth with healthy gross and net margins indicates a structurally profitable business. Combined with a high ROE (~24.7%), this suggests the company converts sales into durable earnings and has competitive pricing/operational efficiency to support reinvestment.

Diversified product & channel mix

A dual business model—large core wires and cables plus branded FMEG products—plus sales through both retail/distribution and institutional/project channels provides structural diversification. This mix smooths demand swings and opens multiple growth levers from retail share gains and project-led volumes.

Negative Factors

Volatile cash conversion

Free cash flow has been uneven: TTM FCF covers roughly 48% of net income and prior years included a negative FCF. Persistent volatility in cash conversion raises risks for funding sustained capex, working-capital needs or consistent shareholder returns without relying on external financing.

Raw-material cost exposure

Earnings and margins are materially exposed to commodity cycles—particularly copper and aluminium. Prolonged metal price inflation or lags in passing costs to customers can compress margins, making profitability sensitive to external commodity trends over coming quarters.

Execution risk from rapid asset expansion

Rapid asset expansion increases the burden on management to allocate capital efficiently. Maintaining the current high ROE requires that new factories, inventories or receivables deliver timely returns; underperformance would dilute margins and returns over the medium term.

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

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: Positive
• Last Price: 7801.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 below the 20-day moving average (MA) of 7821.08, above the 50-day MA of 7552.92, and above the 200-day MA of 7132.40, indicating a bullish trend. The MACD of 268.70 indicates Negative momentum. The RSI at 76.75 is Negative, neither overbought nor oversold. The STOCH value of 93.74 is Negative, 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	68 Neutral	₹1.22T	46.52	―	0.46%	22.25%	36.99%
HAVELLS	66 Neutral	₹880.01B	59.22	―	0.70%	7.26%	3.66%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
VOLTAS	61 Neutral	₹508.87B	101.63	―	0.50%	-1.46%	-1.15%
ORIENTELEC	60 Neutral	₹37.21B	42.86	―	0.82%	6.63%	42.16%
BAJAJELEC	57 Neutral	₹42.76B	119.62	―	0.62%	0.80%	-4.31%
CROMPTON	57 Neutral	₹169.03B	36.64	―	1.16%	0.73%	-5.88%

Polycab India Ltd. Corporate Events

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.