Polycab India: From Domestic Manufacturing to Global Exports – The Polycab Growth Story

Polycab India: From Domestic Manufacturing to Global Exports – The Polycab Growth Story

Introduction

India’s manufacturing sector has undergone significant changes over the years, supported by infrastructure development, increasing electrification and government initiatives such as “Make in India.” As Indian manufacturers continue to strengthen their domestic operations, some are also exploring opportunities in international markets. Polycab India is one such company, having grown from its roots in the wires and cables business into a major electrical products manufacturer with an expanding global presence.

Polycab’s journey reflects the importance of manufacturing capabilities, distribution strength and strategic investments in building a competitive business. Its FY26 performance highlights the strength of its core operations, while also drawing attention to the opportunities and challenges associated with expanding into new products and markets.

Company and Sector Overview

With business roots dating back to the 1960s and its corporate incorporation in 1996, Polycab India has developed into India’s largest wires and cables manufacturer. Over the years, the company has expanded its product portfolio to include Fast-Moving Electrical Goods (FMEG), such as fans, switches, lighting, switchgear, solar products and other electrical accessories. It also operates an Engineering, Procurement and Construction (EPC) business, primarily focused on electrical infrastructure projects.

The wires and cables industry plays an important role in India’s economic development, with demand closely linked to residential construction, industrial activity, power transmission and infrastructure investments. Polycab serves these markets through its manufacturing operations and an extensive distribution network covering retail and institutional customers.

According to the company’s FY26 earnings presentation, its estimated market share in the domestic organised wires and cables industry increased from approximately 26–27% in FY25 to 30–31% in FY26. These company-reported estimates indicate an improvement in Polycab’s competitive position, supported by its distribution reach and business execution.

Quarterly Result Snapshot

Polycab India reported its highest-ever quarterly revenue and profit in absolute terms during Q4FY26, supported by strong performance in its wires and cables and FMEG businesses.

For the quarter ended March 2026, consolidated revenue from operations increased by 27% year-on-year to approximately ₹8,864 crore. Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) grew by 13% to around ₹1,161 crore, while Profit After Tax (PAT) increased by 7% to approximately ₹786 crore.

Although earnings increased, profitability faced pressure during the quarter. The EBITDA margin declined from 14.7% in Q4FY25 to 13.1% in Q4FY26, primarily due to an unfavourable sales mix, lower export contribution within the wires and cables business, higher institutional sales and operating deleverage. The PAT margin also declined from 10.5% to 8.9%.

For the full financial year FY26, Polycab recorded consolidated revenue of approximately ₹28,884 crore, representing 29% year-on-year growth. EBITDA increased by 35% to around ₹4,006 crore, while PAT rose by 32% to approximately ₹2,708 crore.

Unlike the quarterly trend, the full-year EBITDA margin improved from 13.2% in FY25 to 13.9% in FY26. This indicates that the company’s operating profitability strengthened on an annual basis despite the margin pressure experienced in the final quarter.

Overall, FY26 marked a record year for Polycab in terms of revenue and profitability, although the difference between quarterly revenue growth and earnings growth highlights the importance of monitoring margins.

Performance Drivers and FY26 Implications

The wires and cables business remained Polycab’s largest revenue contributor, recording approximately ₹25,179 crore in FY26, representing 33% year-on-year growth. Demand from construction, industrial activity and electrical infrastructure projects supported the segment’s performance, alongside the company’s established distribution and institutional sales channels.

The Fast-Moving Electrical Goods (FMEG) segment also performed well, with annual revenue increasing by 25% to approximately ₹2,069 crore. During Q4FY26, the segment recorded 47% year-on-year revenue growth. Solar products emerged as a standout category, with the company reporting nearly twofold year-on-year growth and identifying solar as the largest category within its FMEG portfolio.

However, performance across business segments was not uniform. The EPC business recorded revenue of approximately ₹1,667 crore during FY26, representing a 13% decline compared with the previous year. The company attributed the quarterly revenue decline in this segment to the timing of project execution.

Polycab’s strategic initiative, Project Spring, remained an important part of its business strategy. The programme focuses on strengthening its core operations, expanding distribution, improving execution and developing additional growth opportunities. According to management, the initiative contributed to the company’s market share gains during FY26.

International business also recorded progress. Export revenue increased by approximately 17% year-on-year to around ₹1,570 crore, while the company added 10 new geographies, taking its international reach to 94 countries.

However, international business accounted for 5.4% of consolidated FY26 revenue, compared with approximately 6.0% in FY25. This indicates that although exports increased in absolute terms, domestic operations grew at a faster pace.

The results show that Polycab’s wires and cables business continues to drive the majority of its financial performance, while FMEG and international operations offer opportunities to gradually broaden its revenue base.

Future Growth Outlook

Polycab’s future prospects remain closely linked to developments in India’s electrical infrastructure, manufacturing and renewable energy sectors. Continued investments in power transmission, industrial facilities, housing and other infrastructure projects could support demand for wires, cables and related electrical products.

Renewable energy presents another potential opportunity. As investments in solar power and supporting electrical infrastructure increase, demand for specialised cables and solar-related products may also expand. Polycab’s existing product portfolio provides exposure to this market, although the scale of future benefits will depend on demand and competition.

Manufacturing capacity expansion is also an important part of the company’s strategy. During FY26, Polycab reported capital expenditure of approximately ₹1,480 crore, compared with around ₹960 crore in FY25. These investments are intended to support capacity requirements and operational capabilities, although their contribution to future earnings will depend on effective execution and capacity utilisation.

The company’s international presence provides an additional avenue for expansion. Increasing its share in existing overseas markets and entering new geographies could help diversify revenue over time. However, export growth will remain subject to international demand, trade conditions and competitive pressures.

Raw material prices are another important consideration. Copper and aluminium account for significant input costs in the wires and cables industry, and fluctuations in their prices can affect working capital requirements, product pricing and profitability.

Therefore, while Polycab has opportunities to expand its operations, sustaining profitable growth will require effective cost management, disciplined capital allocation and consistent business execution.

Peer Comparison

Polycab operates in a competitive industry alongside established companies such as KEI Industries, Finolex Cables, RR Kabel and Havells India.

KEI Industries and RR Kabel are important competitors in the wires and cables market, while Finolex Cables has an established presence in electrical and communication cables. Havells India operates across a broader electrical consumer-products portfolio, including cables, fans, lighting and other electrical equipment.

Polycab’s competitive position is supported by the scale of its wires and cables operations, manufacturing capabilities and extensive distribution network. Its company-estimated share of the domestic organised wires and cables market also reflects its significant presence within the industry.

The company’s FMEG and EPC operations provide exposure to additional electrical product and infrastructure markets. However, wires and cables continue to account for the majority of its revenue, making the performance of this segment particularly important.

While Polycab has recorded strong financial growth, a complete investment comparison with its peers would also require an assessment of operating margins, return on capital, balance-sheet strength and stock market valuations over comparable periods.

Conclusion

Polycab India’s journey highlights how an established domestic manufacturer can strengthen its competitive position while gradually expanding into new product categories and international markets. Its manufacturing capabilities, distribution network and strategic investments have helped establish a strong presence in India’s electrical industry.

While FY26 marked a record year for the company, sustaining this performance will require a careful balance between expansion and profitability. Managing costs, maintaining operational efficiency and adapting to changing market conditions will remain important.

Polycab’s long-term success will ultimately depend on how effectively it converts its market position and strategic investments into consistent earnings growth and sustainable profitability.

Synopsis

Polycab India recorded its highest-ever annual revenue and profitability in FY26, with consolidated revenue increasing by 29% to approximately ₹28,884 crore and PAT growing by 32% to around ₹2,708 crore. The wires and cables business remained its primary revenue contributor, while the FMEG segment recorded strong growth. The EPC business experienced a decline, and quarterly margin pressure highlighted the need to monitor profitability. International business expanded to 94 countries, although exports continued to account for a relatively small share of consolidated revenue. Going forward, investments in manufacturing capacity and opportunities in electrical infrastructure could support the company’s development, while execution, profitability and stock valuation remain important considerations for investors.

The image added is for representation purposes only