Polycab India Ltd. (POLYCAB) AI Stock Analysis

• Market Cap: ₹1.15T
• Dividend Yield: 0.46%
• Average Volume (3M): 8.71K
• Price to Earnings (P/E): 43.7
• Beta (1Y): 1.12
• 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: 150,547,120
• 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: 68 Neutral
• Price Target: ₹7,773.00 ▼(-0.37% Downside)

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

Sustainable Profitability

Healthy gross and net margins indicate durable pricing power and operational efficiency across Polycab's product mix. These margins support reinvestment, buffer commodity swings, and underpin long-term cash generation if maintained through scale and cost control.

Conservative Balance Sheet

Exceptionally low leverage gives the company financial flexibility to fund capex, weather cyclical downturns, and pursue strategic investments without refinancing risk. High ROE shows efficient capital use, supporting durable shareholder returns if capital deployment remains disciplined.

Diversified Products & Structural Tailwinds

A broad portfolio of cables, electrical goods and accessories combined with a wide distributor network positions Polycab to benefit from secular trends like urbanization, infrastructure buildout and renewables, supporting steady demand and resilient revenue over years.

Negative Factors

Weaker Cash Conversion

When reported earnings convert to less than half in free cash flow, the company has less internal funding for capex, dividends or buybacks. Persistent cash conversion shortfalls weaken financial flexibility and raise dependence on working capital and external financing.

Volatile Free Cash Flow

Material swings in free cash flow, including a negative year, make long-term planning harder and raise execution risk for investment and shareholder returns. Volatility reduces confidence in earnings quality and can constrain steady capital allocation strategies.

Capital Deployment Risk from Rapid Asset Growth

Rapid asset and equity growth increases the burden on management to deploy capital effectively. If new investments fail to match past ROE, overall returns can compress. Sustaining high ROE requires disciplined project selection and execution 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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	224.08B	180.39B	141.08B	122.04B	87.92B
Gross Profit	55.40B	47.30B	35.77B	27.13B	22.56B
EBITDA	29.43B	24.71B	18.38B	12.52B	10.98B
Net Income	20.20B	17.84B	12.71B	9.09B	8.82B
Balance Sheet
Total Assets	137.73B	120.79B	94.25B	74.12B	70.15B
Cash, Cash Equivalents and Short-Term Investments	25.45B	22.34B	20.50B	11.71B	11.54B
Total Debt	2.40B	20.23B	1.91B	1.18B	2.83B
Total Liabilities	38.66B	38.36B	27.57B	18.43B	22.42B
Stockholders Equity	98.25B	81.87B	66.31B	55.44B	47.54B
Cash Flow
Free Cash Flow	8.39B	4.38B	9.48B	-150.82M	10.45B
Operating Cash Flow	18.09B	12.96B	14.28B	5.12B	12.38B
Investing Cash Flow	-12.39B	-7.52B	-12.03B	-4.27B	-10.12B
Financing Cash Flow	-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: 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 above the 20-day moving average (MA) of 7220.71, above the 50-day MA of 7352.75, and above the 200-day MA of 6953.20, indicating a bullish trend. The MACD of -27.77 indicates Negative momentum. The RSI at 57.82 is Neutral, neither overbought nor oversold. The STOCH value of 86.49 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	₹1.15T	43.71	―	0.46%	22.25%	36.99%
HAVELLS	66 Neutral	₹843.22B	56.75	―	0.70%	7.26%	3.66%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
VOLTAS	61 Neutral	₹470.12B	93.89	―	0.50%	-1.46%	-1.15%
ORIENTELEC	60 Neutral	₹37.02B	42.64	―	0.82%	6.63%	42.16%
BAJAJELEC	57 Neutral	₹47.90B	46.41	―	0.62%	0.80%	-4.31%
CROMPTON	57 Neutral	₹157.15B	33.23	―	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.