Brokers expressed optimism about Polycab India’s stock price, stating that the business had another excellent quarter.
Following the announcement of Polycab India’s second quarter financial year 2026 results on October 20, the company’s shares surged by almost 3%. The stock has finally ended a losing run of two sessions.
The shares of Polycab India increased by more than 3.5 percent to reach a high of Rs 7,700 per share for the day. At that point, the shares ended at Rs 7,661 per. On October 17, the business made its Q2 results public during market hours. By Friday close, the stock had fallen 2 percent.
Final Results for Polycab India Q2:
For the July–September quarter of the fiscal year 2026, the wire and cable manufacturer declared a net profit of Rs 685.5 crore. After reporting a net profit of Rs 439.8 crore in the same quarter of the fiscal year 2025, this is an increase of about 56 percent year over year.
In the meanwhile, the company’s operating revenue increased by about 18% year over year to Rs 6,477 crore in Q2 FY26. In the second quarter of FY25, the business generated operating revenue of Rs 5,498 crore. EBITDA reached Rs 1,020.7 crore, up 62% year over year.
“Our success in Q2 FY26 reflects another great stride forward in Polycab’s development trajectory,” said Inder T. Jaisinghani, Chairman and Managing Director of Polycab India, in reference to the company’s performance during the quarter. As a result of the ongoing success of our core Wires & Cables business and the growing momentum in the FMEG sector, we achieved our highest-ever second quarter and half annual revenue and profitability.
“Our foreign business is still growing gradually, and the local demand climate is very strong thanks to government infrastructure expenditures and rising private capital expenditure attitude. We are still dedicated to achieving industry-leading growth and generating long-term value for all stakeholders as we go on with our Project Spring agenda,” he said.
What do brokerages say?
With a target price of Rs 8,808 per share, PL Capital maintained its “Buy” rating on the company. This suggests that the stock might rise by more than 18% from its previous closing price of Rs 7,439.5 per share.
The company’s wires and cables (W&C) business showed volume increase in the high teens, according to the domestic brokerage, with cables slightly outpacing wires. Due to increased government funding and better project execution, the domestic W&C industry expanded by 20.6% year over year. In Q2 of FY26, the company’s overseas business rose by 25% year over year and accounted for 6.5% of total sales.
With a one-time gain of Rs 300 million, the EPC business posted an EBIT margin of 18.1% in Q2FY26. By FY30, the firm wants to raise its export contribution to 10%. Its FMEG sector, which is anticipated to be the main contributor to the FEMG portfolio, had another quarter of positive EBIT driven by solar goods. Since its new facility is anticipated to be put into service by Q3FY27, the brokerage said that the income contribution from EHV sales is probably going to start in FY28.
Over FY25–28E, PL Capital anticipates revenue, EBITDA, and PAT CAGRs of 18.6%, 22%, and 20.9 percent, respectively.
For the stock, JM Financial Institutional Securities maintained a “Buy” recommendation, with a target price of Rs 8,900 per share. This suggests that the stock might rise by about 20% from its previous closing price. “Polycab’s performance in Q2 was excellent once again. The YoY growth rates for Polycab’s adjusted sales, EBITDA, and PAT were 17%, 57%, and 51%, respectively. Strong performance in the C&W category from both the home and export markets, with export growth surpassing domestic market growth, being a major contributor to this increase. Our EPS projections have not altered much. With a target price of INR 8,900 at 42 times Sep’27E EPS, it said, “Maintain BUY.”
With a target price of Rs 8,900 per share, Motilal Oswal maintained his “Buy” recommendation on the company. This suggests that the stock might rise by about 20% from its previous closing price. “Polycab India had another impressive quarter. Revenue was in line with expectations, but Polycab’s Q2 FY26 profits were robust and above our projections thanks to higher-than-expected margins in the C&W and FMEG divisions. Strong demand for real estate, increased government capital expenditures, and indications of a rebound in private capital expenditures are the key drivers of the demand in C&W. Exports saw significant growth as well. The business in FMEG said that it had achieved a positive segment margin for the third consecutive quarter and reaffirmed its objective of achieving an 8–10% margin by FY30.
Over FY25–28, we project a CAGR of 18%/22%/21% for POLYCAB’s sales, EBITDA, and PAT. In FY26/FY27/FY28, we project OPM to be 14.6%/14.2%/14.4%, up from 13.2% in FY25. Its liquidity situation would further improve if cumulative FCF for FY26–28E reaches INR43.4b, as estimated net cash will increase to INR48.3b in FY28E from INR24.3b as of September 25.