Polycab India · forward-looking guidance across the available source record.
Guidance tracker
Management expects EBITDA margins to improve by approximately one percentage point from the current range of 11%-13% as operating leverage benefits from higher capacity utilization kick in.
The company targets annualized CapEx of approximately ₹600 crore, including EHV factory setup, export facilities expansion, maintenance CapEx, and FMEG capacity investments.
Management reiterated its commitment to achieving 10% EBITDA margin in the FMEG segment by fiscal 2026, with year-on-year improvement expected directionally each year.
Given the faster-than-expected trajectory (reached ₹14,000 crore annualized revenue within two years of setting the target), management plans to recalibrate the FY2026 revenue guidance within 2-4 quarters.
Company executed INR 18,000 crore last fiscal; believes target is achievable or beatable ahead of schedule. New mid-term guidance to be released during FY25.
Q1 CapEx was INR 280 crore; on track toward higher end of guided range to support capacity expansion for growing domestic demand.
Above long-term guided range of 11-13%; management expects to sustain and improve margins as commodity prices stabilize and channel sales normalize.
Business expected to maintain mid-to-high single digit contribution to consolidated revenue with sustainable operating margins in high single digits over medium to long term.
Long-term margin guidance for cables and wires business factoring in capacity expansion costs, increasing A&P spend (3-5% of B2C top line), export mix benefits, and wires mix dynamics.
Target margin expansion for FMEG business as it scales, driven by premiumization strategy and operating leverage from growth of 1.5-2X industry rate.
Guidance of ₹6,000-8,000 crore capex over five years, largely for cables and wires capacity expansion with some for backward integration. Q1 FY26 spend was ₹410 crore.
Target to grow FMEG business at 1.5-2X of industry growth (industry currently at 8-10%), with expectation of double-digit industry growth from next year as real estate demand continues.