Polycab India reported a 52.8% revenue increase to Rs 9,899 crore in Q2FY27, driven by strong demand in its core segments. However, EBITDA margins contracted by 140 basis points to 14.4% due to rising raw material expenses. Geojit Financial Services has initiated a buy rating with a target price of Rs 8,934, highlighting the company's long-term growth potential in infrastructure and international markets.
Polycab India posted a strong performance in the second quarter of fiscal year 2027, with consolidated revenue reaching Rs 9,899 crore. This reflects a significant 52.8% increase compared to the same period in the previous year. The company's primary business segment, wires and cables, led this growth with revenue rising 47.2% to Rs 8,377 crore. This segment benefited from sustained demand across both private infrastructure projects and public sector initiatives.
The Engineering, Procurement, and Construction (EPC) division also showed growth, with revenue expanding by 53.4% to Rs 617 crore. The company continues to benefit from government-led infrastructure plans, such as the BharatNet project and the Revamped Distribution Sector Scheme, which provide a steady pipeline of work for the firm.
While top-line growth remained robust, profitability experienced some pressure. EBITDA margins fell by 140 basis points to 14.4% during the quarter. This margin contraction was primarily driven by a 55.6% year-on-year increase in raw material costs and elevated operational expenses, which grew faster than the revenue gains. For investors, the ability to manage these costs amid fluctuating commodity prices remains a key area to watch.
Geojit Financial Services has expressed a positive outlook on the company, assigning a target price of Rs 8,934 based on a 34x price-to-earnings multiple of projected FY28 earnings. The brokerage pointed to the company’s focus on premiumization and its expanding footprint in international territories as factors that may support long-term value. Investors will likely monitor whether the company can maintain its market share while navigating the current environment of high input costs. The effectiveness of the firm's execution strategy for its ongoing infrastructure projects will also be an important indicator of its future financial health.