TelecomInfrastructure

Polycab Secures ₹6,448 Crore BharatNet Project!

The monumental project involves a three-year construction phase and ten years of maintenance, reinforcing Polycab’s role in national digital infrastructure development.

Summary:
Polycab India Ltd has secured a ₹6,448 crore contract from Bharat Sanchar Nigam Limited (BSNL) under the ambitious BharatNet Phase III program. The project spans a three-year implementation timeline followed by a decade-long maintenance period. Despite the announcement, Polycab shares closed 1.16% lower on the BSE, reflecting broader market sentiment. This strategic win is expected to significantly boost Polycab’s revenue pipeline and cement its position in India’s digital transformation journey.

In a landmark development, Polycab India Ltd, one of the country’s leading manufacturers of wires, cables, and fast-emerging player in the telecom infrastructure segment, has bagged a prestigious ₹6,448 crore contract from Bharat Sanchar Nigam Limited (BSNL) for the implementation of the BharatNet Phase III project. This project is pivotal to the government’s ongoing push to expand digital connectivity in rural and semi-urban India.
Under the agreement, Polycab will undertake end-to-end execution of the project, which includes a three-year construction period followed by ten years of operations and maintenance. The initiative falls under the Department of Telecommunications’ flagship BharatNet program, aimed at extending high-speed broadband access to every village in India.

About the BharatNet Initiative
BharatNet is the world’s largest rural broadband connectivity program. Designed to bridge the digital divide in India, the project aims to connect over 6 lakh villages with high-speed internet services, ensuring last-mile connectivity through a robust fiber-optic network.
This massive undertaking is a key enabler of the Digital India vision and seeks to empower gram panchayats with affordable broadband infrastructure, promoting e-governance, education, healthcare, and rural entrepreneurship.

Scope of Work: Comprehensive and Critical
Polycab’s role in the BharatNet Phase III project will involve:
Laying Optical Fiber Cables (OFC) across thousands of kilometers
Setting up electronic equipment and network integration
Ensuring service uptime through centralized and local support systems
Managing 24/7 operations & maintenance of the network for ten years
Adhering to high-quality, security, and scalability standards
The scale and complexity of the contract require top-tier project management, skilled manpower, and seamless coordination with BSNL and other government bodies. Polycab is expected to leverage its existing capabilities and nationwide logistics to deliver on time.

Market Reaction: Temporary Dip Amid Long-Term Positivity
Interestingly, despite the announcement of the mega contract, shares of Polycab India Ltd ended the day at ₹6,033.35, down by ₹70.65 or 1.16% on the BSE. Analysts attribute the dip to broader market volatility and profit-booking rather than concerns over the contract.
In fact, many market participants view the order as a long-term positive for Polycab, given the strong revenue visibility it provides over a sustained period of more than a decade.
ICICI Securities, in a post-announcement note, said:
“The contract enhances Polycab’s project-based revenue pipeline and aligns well with its strategic vision to transition from being a cable manufacturer to a complete solution provider in electrical and telecom infrastructure.”

Strategic Significance: A New Era for Polycab
This order marks a turning point for Polycab India, traditionally known for its dominance in the electrical wires and cables segment. Over the last few years, the company has been aggressively diversifying into telecom infrastructure, EPC services, and smart city projects.
The BharatNet contract offers several strategic benefits:
Revenue Certainty: With a project size of ₹6,448 crore and a 13-year execution horizon, Polycab secures a consistent revenue stream with minimal demand-side risks.
Brand Elevation: Winning a marquee government contract of this magnitude reinforces Polycab’s credentials as a national infrastructure partner.
Operational Expansion: The project will require localized resource deployment, which will expand Polycab’s footprint across Tier 2 and Tier 3 towns.
Technological Advancement: Handling advanced networking equipment and OFC deployment will further build Polycab’s capabilities in telecom engineering.

Government’s Push and Policy Synergy
The award of this contract also aligns with the Indian government’s aggressive push to enhance rural connectivity, especially in the backdrop of evolving digital ecosystems in education, agriculture, telemedicine, and fintech.
The Digital India campaign and the PM Gati Shakti Master Plan both emphasize converging physical and digital infrastructure, and companies like Polycab are poised to play a crucial role.
Telecom Minister Ashwini Vaishnaw, speaking on BharatNet earlier this year, had remarked:
“India’s rural digital revolution is impossible without robust fiber connectivity. BharatNet is not just a project—it is the future of rural empowerment.”

Polycab’s Financial Health and Future Outlook
Polycab’s latest financials present a strong case for its capability to execute such large-scale infrastructure projects. For FY24, the company reported:
Revenue: ₹17,256 crore (up 14.5% YoY)
EBITDA: ₹2,430 crore
Net Profit: ₹1,572 crore
Debt-to-equity ratio: 0.12, reflecting a strong balance sheet
With robust cash flows and a healthy order book, the company appears well-positioned to fund and execute the BharatNet project without significant leverage concerns.

Analyst Views: A High-Impact Development
Brokerages have largely responded positively to the news. HDFC Securities noted that the size and tenure of the project will provide consistent cash flows and long-term operational leverage.
Motilal Oswal, meanwhile, emphasized that the contract win could act as a re-rating catalyst, especially if Polycab maintains its momentum in diversifying from cables into full-fledged infrastructure services.

Conclusion
Polycab India’s ₹6,448 crore contract win from BSNL under the BharatNet initiative is not just a commercial milestone, but a strategic leap that marks its growing stature in national infrastructure. As India sets its sights on digital inclusion and equitable growth, players like Polycab will be at the heart of this transformation, delivering connectivity, empowerment, and economic potential to the remotest corners of the nation.
Investors and stakeholders will closely monitor the execution efficiency and operational gains this project brings to one of India’s most respected cable and infrastructure companies.

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The image added is for representation purposes only