Polycab Q4 Results Review: ICICI Securities Maintains 'Hold', Revises Target Price Post Strong Performance

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ICICI Securities Report

Polycab India Ltd. reported strong numbers in Q4 FY25. Highlights were:

1. FMEG portfolio reported profit at Ebit level, after posting losses for past 10 quarters. Reduction in ad-spend, as % of net sales, and operating leverage led to higher Ebit margins.

2. With increase in copper prices as well as normalisation of trade inventory in wires in Q4 FY25 after reduction in trade inventory in Q3 FY25 led to strong growth in cables and wires segment. However, deferment of orders led to 24% revenue decline in international business.

3. The company has also gained market share of ~100 bps in domestic organised cables and wires industry.

With competitive intensity likely to inch up in cables and wires with the entry of Ultratech and Adani in FY27-28, we model Polycab to focus on market share gains even if there is a margin impact in the near term (DCF accretive).

We trim FY26E earnings by 3.2% and retain Hold with a DCF-based revised target price of Rs 6,150 (implied target P/E of 32x FY27E EPS).

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