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Polycab India Shares Rally on Strong Q4 Results
Polycab India's stock price surged nearly 5% in early trading on May 7, a significant reaction to the company's recently announced Q4FY26 financial results. The impressive quarterly performance has drawn positive attention from market analysts.
Key Financial Highlights
Motilal Oswal reported that Q4FY26 revenue increased by 27% year-on-year to ₹8,860 crore, while EBITDA rose 13% to ₹1,160 crore. The cable and wire business continued its strong performance and remained the primary growth engine.
FMEG Segment Accelerates Growth
The Fast-Moving Electrical Goods (FMEG) segment also showed robust expansion, posting a notable 39% year-on-year revenue growth. Within FMEG, solar products have become a major growth driver, now representing the largest category. Increased demand stems from government initiatives and a growing preference for premium products like fans and lighting.
Market Share Gains and Future Plans
Polycab continues to strengthen its standing in the organized market. Nuvama highlighted that the company's market share in the cable and wire business has grown to approximately 30-31%, up from 26-27% in FY25. This sustained market share expansion is seen as a key factor for long-term growth. Management is also targeting exports to contribute nearly 10% of revenue by FY30, with planned expansion into markets like the United States and Europe.
Analyst Ratings and Outlook
Major brokerages, including Motilal Oswal, JM Financial, and Nuvama, have reiterated 'Buy' ratings following the Q4 results. Their target prices—₹9,800 from Motilal Oswal, ₹9,700 from JM Financial, and ₹9,740 from Nuvama—suggest potential upside of around 15-16%. While analysts acknowledge mixed near-term environmental factors, such as global uncertainty and some demand slowdown, they remain optimistic about Polycab's long-term growth trajectory.