Polycab India reported a record quarterly profit of INR 9,900 million for Q2 FY27, a 43% jump YoY, alongside a massive 53% revenue growth. The company’s FMEG segment hit double-digit EBIT margins for the first time. Crucially, the NCLAT has stayed the NCLT admission order related to the Asier Metals case, providing immediate regulatory relief to the company.
Polycab India Q2 FY27: Record Profits and Legal Relief
Revenue grew by 53% year-on-year to reach new highs, while PAT hit a record INR 9,900 million.
Reader Takeaway: Strong FMEG margin breakthrough and NCLAT stay on insolvency proceedings provide significant positive momentum for shareholders.
What just happened
Polycab India delivered a stellar performance in Q2 FY27, with revenue growing 53% compared to the same period last year. Profit after tax (PAT) climbed 43% to reach a record INR 9,900 million. EBITDA margins saw a sequential expansion of 50 basis points to 14.4%. The company also reported a significant improvement in its liquidity position, with net cash rising to INR 45.2 billion from INR 29.4 billion a year prior.
Why this matters
The standout performance came from the FMEG (Fast Moving Electrical Goods) business, which grew 124% YoY. Notably, the segment achieved double-digit EBIT margins of 10.1% for the first time, marking its 11th consecutive quarter of growth. This demonstrates that the company’s push into consumer-facing products is gaining meaningful scale and profitability, reducing its reliance solely on the core Wires and Cables business.
The Asier Metals update
The company received a major legal boost as the NCLAT stayed the NCLT’s admission order concerning a commercial dispute with Asier Metals. The order is now held in abeyance in its entirety. Management maintains confidence in a final favorable outcome, which removes a key overhang that had concerned market participants.
Risks to watch
While the financial results are robust, investors should monitor the final legal resolution of the Asier Metals/CIRP dispute. Commodity price volatility remains a recurring risk, although the company’s cost-plus pricing model provides some buffer. Additionally, the market will be watching the execution and commissioning timelines for the new EHV plant, which is currently slated for FY28.
What to track next
Investors should focus on whether the FMEG business can sustain its new double-digit margin profile. Additionally, monitor how Polycab maintains its market leadership and distribution network efficacy in the face of potential new industry entrants.