Polycab India Ltd.
NSE: POLYCABPolycab India Ltd.: A 30-second snapshot
Polycab India trades at ₹9,477.5, up 61.1% over 12 months and 2.76% below its 52-week high, after reporting record FY26 revenue of ₹289 billion and a Q4 profit of ₹786 crore (+7% YoY). The trailing PE of 53.49 and forward PE of 38.53 reflect elevated near-term expectations relative to a 5-year earnings CAGR of 8%, while ROE of 24.58% and a rising D/E of 2.558 frame the quality-versus-leverage trade-off. Across 31 analysts the mean rating is 1.90 on a 1–5 scale (lower = more constructive).
P/E
53.5
Forward P/E
38.5
ROE
+24.6%
Debt / Equity
2.56
Profit Margin
+9.3%
Div. Yield
+0.4%
5Y ROE > 15%
4/5
5Y FCF > 0
4/5
Quality
69/100
News
8 headlines · 6 positive · 0 negative
Polycab Q4FY26 impresses Street; MOFSL, ICICI Securities raise targets - Business Standard
Business Standard
Polycab India Q4 results: Profit rises 7% to Rs 786 crore; co declares Rs 47/share dividend - The Economic Times
The Economic Times
Polycab India FY26 Results: Record Revenue, 32% PAT Growth & ₹47 Dividend - scanx.trade
scanx.trade
Polycab Q4 Results: Earnings beat led by 47% growth in FMEG business; Dividend declared - CNBC TV18
CNBC TV18
Polycab posts record FY26 revenue of ₹289 billion, stock rises 0.94% - BusinessLine
BusinessLine
Recent context
- ·Q4FY26 results reported profit of ₹786 crore (+7% YoY) and record FY26 revenue; the company declared a ₹47/share dividend, and MOFSL and ICICI Securities each raised their price targets following the print.
- ·FY26 full-year PAT growth was reported at 32% (per one headline), creating some divergence from the 5-year CAGR figure of 8%; the acceleration in the most recent year is a key factor behind current analyst constructiveness.
- ·The incorporation of a wholly owned subsidiary for EPC projects was noted in news flow; this strategic expansion into project execution carries different margin and working-capital characteristics compared to the core product business.
Strengths
- +Revenue has compounded at 26.9% over 5 years, reaching a record ₹289 billion in FY26, with FMEG segment revenue growing 47% in Q4 alone, demonstrating execution breadth beyond the core wires-and-cables business.
- +ROE of 24.58% has stayed above 15% in 4 of the available years, and FCF has been positive in 4 of those years, yielding a persistence consistency score of 83 — above the mid-pack quality score of 48.
- +The stock is 16.7% above its 50-DMA (₹8,119) and 61.1% higher over 12 months, reflecting sustained price momentum that has held through the recent earnings season; it is only 2.76% below its 52-week high.
- +At a trailing PE of 53.49, Polycab trades below sector peers ABB India (95.93) and CG Power (116.0), and the forward PE of 38.53 implies Street expectations for meaningful near-term earnings recovery.
Weaknesses
- −5-year earnings CAGR of 8% is dramatically below the 5-year revenue CAGR of 26.9%; profitability has not scaled commensurately with revenue, suggesting cost structures or product mix have weighed on bottom-line conversion.
- −Debt-to-equity of 2.558 is on a rising trend, elevated for a non-bank industrial; entry into capital-intensive EPC project work may increase this further, adding sensitivity to funding costs.
- −RSI at 69.95 and a price 24.1% above the 200-DMA (₹7,633) indicate the current price embeds a substantial premium to medium-term trend; the nearest identified support at ₹7,536 is approximately 20.5% below current levels.
- −Quality score of 48 places Polycab at the middle of its 6-stock peer group in the Infrastructure sector, behind Cummins India (69) and BEL (49), reflecting the gap between revenue scale and earnings quality.
Open questions
- ?Does the 47% FMEG revenue growth in Q4 represent a structural shift in product mix, or is it driven by a temporary demand cycle in the electrical equipment segment?
- ?Can the 32% PAT growth reported in FY26 be sustained, and what would need to remain true about input costs, channel mix, and operating leverage for earnings growth to close the historical gap with revenue growth?
- ?How does the rising D/E of 2.558 interact with the EPC project expansion — specifically, what is the likely working-capital intensity and how does it compare to the product business?
- ?Given that nearest support sits approximately 20.5% below current price and RSI is near 70, what event or operational development would most directly influence whether price continues to hold above the 200-DMA?
Peer comparison: Infrastructure
Ranks 3 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| POLYCAB | Polycab India Ltd.You're viewing | 53.5 | +24.6% | 48 |
| Industry avg | across 5 peers | 72.4 | +23.4% | 47 |
| CUMMINSIND | Cummins India Ltd. | 66.6 | +29.5% | 69 |
| BEL | Bharat Electronics Ltd. | 49.1 | +27.6% | 49 |
| ABB | ABB India Ltd. | 95.9 | — | 47 |
| CGPOWER | CG Power and Industrial Solutions Ltd. | 116.0 | +19.6% | 45 |
| LT | Larsen & Toubro Ltd. | 34.3 | +16.9% | 24 |
Technical state
Current price
₹9,477.50
SMA 50
₹8,119.65
SMA 200
₹7,633.28
RSI (14)
70.0 (neutral)
From 52w high
-2.8%
1Y return
+61.1%
3M return
+18.9%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Risk flags
- medium5-year earnings CAGR of 8% is materially below the 5-year revenue CAGR of 26.9%, indicating sustained margin compression or cost escalation over the period; trailing profit margin stands at 9.25%.
- mediumRSI at 69.95 and price 16.7% above the 50-DMA (₹8,119) and 24.1% above the 200-DMA (₹7,633) reflect a steep short-term premium to trend; nearest support level at ₹7,536 is approximately 20.5% below current price of ₹9,477.
- mediumDebt-to-equity of 2.558 is on a rising trend; for a non-bank industrial this adds balance-sheet sensitivity to interest-rate cycles, particularly as the company expands into EPC project execution.
- low1-year price-change data is null for all 5 sector peers, preventing a comparative return-ranking; ROE is unavailable for 2 of 5 peers, making the ROE peer ranking only partially reliable.
Cross-section contradictions
- Revenue compounded at 26.9% over 5 years while earnings grew at only 8% over the same period; bottom-line delivery has consistently lagged top-line scale, suggesting rising input costs, product-mix shift toward lower-margin segments, or that operating leverage has not yet materialised.
- News flow is uniformly positive (6 of 8 articles positive, 0 negative) and the stock is within 2.76% of its 52-week high, yet the trailing PE of 53.49 on a 5-year earnings CAGR of 8% prices in a significant acceleration in profitability that historical delivery has not yet demonstrated.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 1 Jun 2026 · rotates through NIFTY 500 every ~5 days