Polycab India stock declined to ₹8,861, dropping 12.5% from its June record high, despite a 32.8% jump in Q1FY27 net profit to ₹796.65 crore. The fall suggests investors may be booking profits after a 48% surge in the previous three months. While brokerages remain positive on long-term demand, the current price reflects a correction as market participants weigh valuations.
Polycab India shares saw further selling pressure on Friday, dropping 3.8% to a low of ₹8,861 on the NSE. This decline follows a broader correction for the stock, which has fallen 11% in July 2026. This recent downward trend stands in contrast to the company's performance in the preceding three months, during which the stock rallied 48% and reached a record high of ₹10,126 on June 22, 2026. The stock is currently trading 12.5% below that peak.
Record Financial Results for Q1FY27
The market reaction comes despite strong financial numbers for the quarter ended June 30, 2026. Polycab posted its highest-ever quarterly net profit, revenue, and EBITDA. The company’s consolidated net profit rose by 32.8% year-on-year to ₹796.65 crore, compared to ₹599.70 crore in the same quarter last year. Revenue grew by 39% to ₹8,209.70 crore, while EBITDA increased by 32% to ₹1,136.20 crore.
Growth was primarily driven by the wires and cables division, the company's largest segment, which saw a 37.7% revenue increase to ₹7,201.79 crore. Additionally, the Fast-Moving Electrical Goods (FMEG) segment recorded a strong performance with a 67.6% revenue jump to ₹761.15 crore. However, not all segments saw growth, as revenue from the engineering, procurement, and construction (EPC) business fell 11.4% to ₹307.74 crore.
Brokerage Outlook and Market Context
Despite the recent dip in share price, many analysts maintain a constructive view on the company's business model. JM Financial Institutional Securities noted that the Q1 results surpassed their estimates, specifically highlighting the growth in the wires and cables and FMEG segments. Analysts at the firm reiterated a 'Buy' rating with a target price of ₹10,700, citing long-term benefits from infrastructure and power transmission investments. Similarly, Equirus Securities maintains an 'Add' rating with a target price of ₹10,213.
While brokerages emphasize the company’s strong execution capabilities and expansion into data centers and private infrastructure, they also acknowledge that the stock’s previous valuation had already accounted for much of these strengths. Equirus Securities noted that while volume growth is expected to remain healthy, future quarterly earnings might face pressure from higher base effects compared to the previous year. Investors are now balancing these long-term growth prospects against the company's current valuation, which appears to have triggered a period of profit-taking. The primary monitorable for shareholders will be whether the company can maintain these margins and growth momentum in the coming quarters as the industry faces shifting base effects and evolving demand.