Is Polycab a Buy After Q2 Results? Here’s What Jefferies, HSBC, and Other Brokerages Have to Say
The article outlines the outlook of global brokerages on this company, which is India’s leading manufacturer of cables and wires and allied products such as uPVC conduits and lugs and glands
With a market capitalization of Rs 1,23,866 crore, Polycab India Ltd’s share closed at Rs 8,219 per share, flat from its previous close. The stock of the company gave a return of 8.5 percent over the last year.
Brokerage View
Jefferies on Polycab India
Jefferies has maintained a Buy rating on Polycab India with a target price of Rs 11,040, indicating an upside of 34.32 percent. The brokerage views the company as a key beneficiary of rising power demand and infrastructure spending, supported by consistent sales growth and strong earnings potential.
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Consistent Sales Growth: Polycab has reported double-digit sales growth in its Cables and Wires (C&W) business for 16 consecutive quarters. During this period, it has maintained EBIT margins between 12 and 15 percent, showing steady growth and profitability.
Strong Performance Across Segments: In Q2 FY27, domestic C&W sales grew 50 percent YoY, while sales in the Fast Moving Electrical Goods (FMEG) business more than doubled. However, C&W EBIT margin fell by 90 basis points to 14.2 percent due to a high base in the previous year. Meanwhile, FMEG EBIT margin reached a record 10 percent.
Share Price Fall and Future Growth: Polycab shares have fallen around 20 percent from their June 2026 peak. The stock is trading at 35 times its expected earnings for the next year, around 8 percent below its average valuation over the past five years. Jefferies expects earnings per share to grow at a CAGR of 22 percent between FY26 and FY29, supported by rising power demand and infrastructure spending.
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HSBC on Polycab India
HSBC has given a Buy rating on Polycab India with a target price of Rs 10,550, indicating upside potential. The brokerage expects strong earnings growth to continue, supported by better margins and strong execution across its Cables and Wires (W&C) and FMEG businesses.
Strong Earnings Beat: Polycab's Q2 FY27 earnings were around 19 percent higher than HSBC's estimates. Strong execution, rising commodity prices and improved margins across the W&C and FMEG businesses helped the company deliver better-than-expected results.
Growth Outlook and Key Risk: HSBC expects Polycab to maintain strong earnings growth in the coming quarters. However, rising competition in the Cables and Wires business remains a key risk, as it could put pressure on the company's sales growth and profit margins.
CLSA on Polycab India
CLSA has given an Outperform rating on Polycab India with a target price of Rs 10,240, indicating upside potential from current levels. The brokerage expects the company to maintain strong sales growth and profit margins, although high base effects and rising competition could affect performance in the coming quarters.
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Strong Q2 FY27 Results: Polycab reported a 53 percent YoY increase in revenue and a 39 percent rise in EBITDA in Q2 FY27, beating estimates. Growth across its business segments helped drive the performance, reflecting strong demand for its products.
Cables and Wires Drive Growth: The Cables and Wires business recorded 47 percent YoY revenue growth, supported by volume growth of 6 to 8 percent. Wires performed better than cables during the quarter. The Fast Moving Electrical Goods (FMEG) business also more than doubled its sales, with broad-based growth across categories and its highest-ever margin.
Growth Outlook and Key Risks: CLSA expects Polycab to continue delivering strong growth and margins compared with the industry. However, a high base in Q3 FY27 could slow volume growth, while rising competition remains a concern. The brokerage believes the recent fall in the share price already reflects these risks. It also noted that the company's appeal before the NCLAT has been heard and the order is awaited.
Macquarie on Polycab India
Macquarie has given an Outperform rating on Polycab India with a target price of Rs 10,156, indicating potential upside. The brokerage expects strong demand for cables and wires, along with improving growth and margins in the FMEG business, to support the company's performance.
Strong Earnings Performance: Polycab's Q2 FY27 earnings exceeded Macquarie's estimates, supported by higher revenue and better margins in the Cables and Wires (C&W) business. This shows the company's ability to benefit from strong demand while maintaining profitability.
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Demand and FMEG Growth: Demand for cables and wires remains strong, driven by spending on power and infrastructure projects. Meanwhile, the FMEG business is showing improvement in sales growth and margins from a low base, which could support overall business performance in the coming quarters.
About the Company
Polycab India Ltd is India’s largest manufacturer of wires and cables and also operates in the Fast Moving Electrical Goods (FMEG) segment. Its products include electrical wires, power cables, fans, LED lighting, switches, switchgear, and solar products. The company also provides engineering and infrastructure solutions and exports its products to several countries.
Financial highlight: Revenue increased to Rs 9,899 crore in Q2 FY27 from Rs 6,477 crore in Q2 FY26, registering a 53 percent growth YoY. EBITDA rose to Rs 1,422 crore in Q2 FY27 from Rs 1,021 crore in Q2 FY26, up 39 percent YoY, while net profit increased to Rs 990 crore from Rs 693 crore, up 43 percent YoY. EPS stood at Rs 64.86 in Q2 FY27, up 42 percent from Rs 45.54 in Q2 FY26.