The Polycab India share price will be in focus after it delivered stellar Q1FY26 numbers. The company has clocked its highest-ever first-quarter revenue, and the domestic wires and cables business grew 32% YoY. The international business too clocked a steady 24% YoY growth, now contributing over 5% to consolidated revenue. The leading brokerage house, Nuvama has recommended ‘Buy’ on the stock with a target price of Rs 7,950 per share. This implies 15.5% upside from current levels.
Nuvama on Polycab: Strong growth in cable & wire business
Nuvama highlighted the steady growth in the company’s cable & wire business, with cables outgrowing wires growth. The brokerage houses added that “near-record-high EBIT margins at 14.7% (+210 bps YoY) on the back of strategic price adjustments and operating leverage” support the positive recommendation. They added that despite weak fans growth, “revenue from fast-moving electric goods grew 18% YoY while margins rose 280 bps YoY to 2.1%.”
Nuvama on Polycab: Sustained demand
The Nuvama report pointed out that the wires & cables segment revenues grew by 33% YoY “on the back of sustained demand across core sectors.” They explained that “both channel and institutional business showed healthy traction. The international business accounted for 5.2% of the topline.” The 210 bps expansion in EBIT margins for the cable and wire segment was aided by strategic price adjustments and operating leverage, they added, and this also supports the Buy recommendation.
Nuvama on Polycab: Fast Moving Electrical Goods revenues grew by 18%
The other big positive, as per the Nuvama report, was the steady growth in the fast-moving electrical goods business. It bettered its 6-year average growth of 11% and delivered 18% growth in Q1.This was on the back of “healthy growth momentum.” While the fans business had a muted performance (shorter summer season), categories like lights, switchgears, switches, and conduit pipes & fittings delivered respectable growth. Solar products sustained their robust growth trajectory, clocking more than 2x YoY growth. EBIT margins stood at 2.1% (second consecutive quarter of profitability), driven by a shift to premiumization and operating leverage. Other segment revenues declined by 33% YoY with margins contracting by 330 bps.
However, Nuvama pointed out that some key risks continue, including “volume growth and margins in cables/wires and outlook, export scenarios, particularly on tariffs in the USA, and the FMEG growth/margins outlook.” These are the key factors to monitor going forward.