POLYCAB Q1 FY27 earnings call.
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Revenue
₹8,210 Cr
verified against source
Revenue YoY
39%
reported change
EBITDA
Pending
latest reported figure
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Actual signal trajectory
Where this quarter sits.
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What the record says.
Polycab delivered 39% revenue YoY growth in Q1 FY27 with consolidated PAT of Rs 796.7 crore (33% YoY), marking the highest-ever quarterly profit. Wires & Cables maintained steady 39% YoY growth with domestic business growing 43% YoY, though volume growth was low-to-mid single digits on a high base of 26% in Q1 FY26. FMEG posted 71% YoY growth for the 10th consecutive quarter of outperformance, with solar business delivering 2x growth and EBITDA margins at 8%—ahead of FY30 guidance timeline. EBITDA margins of 13.8% showed ~70bps sequential improvement. Working capital temporarily compressed to 15 days (from normal 45-50 days) due to LC-driven payables. Management remains confident of sustaining 1.5x market growth through FY30, driven by T&D capex (17,000 circuit km expected in FY27), data center opportunity (Rs 20,000-25,000 crore potential market), and B2B/private sector recovery. Key risks include potential T&D project execution delays, geopolitical impact on exports (Middle East still recovering), and raw material price volatility impacting channel stocking behavior.
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Guidance to track
- Management reaffirmed Project Spring roadmap. Q1 margins at 13.3% with sequential improvement driven by favorable business mix (wires > cables, channel > institutional).
- Q1 FY27 delivered 8% EBITDA margin—earlier than anticipated. Management expects quarterly seasonality but full-year trajectory remains positive.
- Q1 EPC margin was 11%, above guidance range. Management maintained medium-to-long-term guidance despite Q1 revenue decline of 11% YoY due to project milestone timing.
- Currently India is underindexed in global cable/wire trade. Management sees North America (45-50% of Q1 exports), Europe (18-20%), and Middle East (20-24%) as key markets. 10 new geographies added last year; footprint now in 94 countries.
Risks flagged
- Copper prices dropped ~14% in June (from Rs 14,000 to Rs 13,100-13,200), aluminum fell 18-20% from June 1-30. Management confirmed channel stocking was 'below expectation' and suboptimal in June due to price decline. This creates a risk of weaker Q2 volumes if destocking continues.
- While management highlighted healthy order book and recovery signals, Q1 export decline was significant. Middle East (historically important market) is still recovering from geopolitical disruptions. Any resurgence of tensions could impact the recovery trajectory.
- Analyst Noshir questioned whether T&D targets (15,000 circuit km historically vs 17,000 projected for FY27) and data center opportunity (8-18 GW potential over 5-8 years, currently only 1.6 GW installed) will materialize as expected. Management acknowledged data center ramp-up is a timing issue rather than structural concern. Any delays in government project execution or data center capacity addition would impact volume growth guidance.
- Working capital cycle temporarily compressed to 15 days (vs normal 45-50 days) due to LC-driven payables increase. As this normalizes, working capital outflow will increase, potentially impacting FCF in coming quarters.
Key quotes
- I think the strength of our procurement is such that we were able to secure the fibers for the execution period which is next 2 to 3 years. Within the 8,000 crore Bharatnet contract, the supply portion is around 30%. So for that portion we've already secured the fiber. Hence we are technically not exposed to the high fiber prices happening today.
- I think if the addition only happens 1 GW then obviously the translation to cable and wire requirement of the market will not be substantial. But the opportunity could actually be from 8 GW to 16 to 18 GW over a period of 5 to 8 years. We need to see how it translates into reality.
- Quarter on quarter may not be a good indicator. You may have to look at a longer time period of at least 10 to 12 months to assess that. We are very confident on the demand side. We believe we'll be at the forefront of taking the lion share of the demand and on a full year basis we should be able to live up to 1.5x of market growth.
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