POLYCAB Q2 FY27 Earnings Call: Revenue Jumps 53% With Record PAT, FMEG Margin Crosses 10%

POLYCAB held its Q2 FY27 earnings call on October 15, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Record Quarter with Broad-Based Margin Strength

• Consolidated revenue +53% YoY in Q2 FY 2026-2027, with record PAT of Rs.9,900M (+43% YoY) at a 10% margin; EBITDA margin expanded >50bps sequentially to 14.4%.
• H1 FY 2026-2027 revenue crossed Rs.180B (+46% YoY) with PAT +38% YoY; management announced record revenue and profitability for both Q2 and H1.
• Wires & Cables revenue +47% YoY in Q2 FY 2026-2027 (domestic +50%) at a 14.2% EBIT margin; overall cable & wire revenues grew 50% in H1 FY 2026-2027 (domestic 47%).
• FMEG revenue +124% YoY in Q2 FY 2026-2027 — the 11th consecutive quarter of industry-leading growth — with EBIT margin crossing 10.1%, a first double-digit milestone.
• EPC revenue of Rs.6,171M (+53% YoY) in Q2 FY 2026-2027 at a 7.2% EBIT margin.
• Working capital cycle reduced to ~11 days in Q2 FY 2026-2027, aided by LC usage; management guided it will normalize towards the 45-50 days long-term range.
• Capex of Rs.6.1B incurred in H1 FY 2026-2027; Project Spring initiatives progressing in line with plan and beginning to yield results in FY 2026-2027.

Wires Outpacing Cables; UltraTech Entry Downplayed

• Cable & wire volumes up mid-to-high single digits in H1 FY 2026-2027 on a strong FY 2025-2026 base of 18% volume growth; wires volumes grew early double digits, cables mid single digits.
• Wires outpaced cables in H1 FY 2026-2027, reversing the FY 2025-2026 trend, on demand from manufacturing, mobility and real estate; management declined to guide on whether this persists in H2 FY 2026-2027.
• Management downplayed UltraTech's entry into wires, noting the total Indian cable & wire market is ~Rs.1.1 lakh crore (wires ~30%, of which 30-35% is unorganized); Polycab gained 3-4 ppts market share in FY 2025-2026 and has taken no pricing action in response.
• Management differed with channel checks suggesting competitors are pricing 10-15% lower, stating no pricing correction is currently observed in their distribution network.
• Unorganized market share in wires estimated at roughly 30% (Q2 FY 2026-2027); Polycab's share of the organized cables and wires industry stands at 30-31% per the FY 2025-2026 annual report.
• Exports grew 85% QoQ in Q2 FY 2026-2027, now covering 94 countries (10 added in FY 2025-2026), with key markets in Europe, LATAM, Asia and new contributions from Chile, Oman and Saudi Arabia; management cited geopolitical risks (Mr. Trump, shipping delays) as a near-term headwind.
• Exports fell to 5% of Q2 FY 2026-2027 revenue from 6.5% in FY 2025-2026, attributed optically to strong domestic demand.

Margins Running Above Long-Term Band

• Q2 FY 2026-2027 cable & wire margins held in the 13-14% band, supported by operating leverage, an improved channel-vs-institutional mix, and premiumization; actual H1 FY 2026-2027 EBITDA margin in wires and cables was ~15%.
• Management reiterated long-term margin guidance of 11-13% for FY 2029-2030 (current outlook), citing eventual normalization of business mix; H1 actuals of ~15% run above this band, supported by strong demand and higher copper prices.
• FMEG EBIT margin of 10.1% in Q2 FY 2026-2027 sits at the upper end of the guided 8-10% EBITDA range for FY30, driven by scale, premium mix (fans 33%, lights 38%) and a solution-driven approach.
• Management reaffirmed the FY30 FMEG guidance as a CAGR approach, allowing for annual margin fluctuations (high single digits or double digits) while maintaining the long-term 8-10% range.
• EPC margins guided sustainable in the high single-digit range over the medium/long term.
• Wires & Cables volume growth anchored at 1.5x of market growth long-term; with recent GDP growth at 7.8% (FY 2026-2027), wires and cables expected to grow 12-13% in FY 2026-2027.
• Q3 FY 2025-2026 carried a high base of ~45% growth; management advises assessing volumes on a 12-month trailing basis rather than quarter-to-quarter.

Government Capex, Data Centers and Housing Tailwinds

• India GDP grew 7.8% in Q1 FY 2026-2027; the IMF raised India's growth outlook by 60 bps (period unspecified).
• Government capex reached Rs.5.10 lakh crore in H1 FY 2026-2027 (Apr-Aug 2026), up 18% YoY; the government approved Rs.1.9 lakh crore outlay for Green Corridor Phase 3, including evacuation of 135 GW of renewable energy (period unspecified).
• RBI MPC hiked the repo rate by 25 bps to 5.5% in FY 2026-2027, shifting stance to 'calibrated tightening', implying no near-term rate cuts.
• Data centers identified as a major opportunity: current capacity ~1.6-1.7 GW (Q2 FY 2026-2027) with industry reports suggesting 8-15 GW potential (period unspecified); Polycab is working on products for this segment while currently supplying conventional parts — execution of private and government announcements needs to be monitored.
• Government initiatives like the 8th Pay Commission are expected to boost affordable housing demand, acting as a tailwind for wires and cables; real estate launches up 4% YoY in FY 2026-2027, with 3.8 lakh units sold/launched in CY 2024.
• Management cited "definite demand from data center and AI and energy transformation that is happening in US" as the key driver for conventional LV, MV and HV cable exports in FY 2026-2027.
• GST collections grew 15% YoY in FY 2026-2027; bank credit growth trended at 15-20%.

Solar Multifold Growth, EPC Order Book, Copper Sourcing

• Solar business (part of FMEG) growing multifold in FY 2026-2027 — currently focused only on inverters via a trading model, with confidence growth will further increase; no current plans to enter manufacturing (panels/installations). Management cited the government's PM Surya Ghar Yojana as a key tailwind.
• All six FMEG categories (lightings, switchgears, fans, pipes, conduits) are beating industry growth in FY 2026-2027, with strong confidence in continued growth across the segment.
• EPC order book stands at ~Rs.9,000-10,000 crore in FY 2026-2027 for BharatNet and RDSS projects.
• Polycab sources 100% of its copper via imports in FY 2026-2027; management is satisfied with current arrangements and sees no immediate shift in the sourcing mix.
• Copper prices rose only 6% QoQ in Q2 FY 2026-2027 (aluminum declined), with no significant delay in institutional offtake; standard price pass-through applies (cables: 1 month, wires: fortnight).
• Underlying demand remains strong enough to absorb the 40-45% copper price increase in H1 FY 2026-2027, though management offered no view on the copper price trajectory for H2 FY 2026-2027.
• The Rs.1,200 crore (Rs.12.5 billion) cash flow item in Q2 FY 2026-2027 represents advance payments for inventory procurement and is not a one-off, per Nikhil Jaisinghani.

EHV Commissioning, Revenue Outlook and Legal Overhang

• EHV plant commissioning expected in FY 2028 (potentially starting April/May), after which top-line contribution will commence.
• Management declined to guide on H2 FY 2026-2027 revenue run rate sustainability, noting revenue is tied to copper prices, which rose 40-45% in H1 FY 2026-2027.
• Management expects H2 FY 2026-2027 to remain promising for wires and cables, supported by strong demand and higher copper prices.
• NCLAT stayed the NCLT admission order in its entirety (Rs.2.79 crore commercial dispute, FY 2026-2027), including the initiation of CIRP; early hearing concluded Oct 15, 2026, and management is 'reasonably confident' of a favorable judgment on merits. The IBC case hearing has concluded with the order reserved; management declined to provide a timeline for the order's announcement.
• Management does not expect any adverse or material impact on financial or business operations from the legal proceedings.
• Outlook for the remainder of FY 2026-2027 and beyond focuses on sustaining growth momentum and investing in innovation, talent, and capabilities, with Project Spring targeting opportunities in infrastructure, energy transition, manufacturing, urbanization, and exports.