Polycab India shares jump 3% after firm posts bigger-than-expected Q2 profit

The shares of Polycab India jumped around 3 percent on October 20 after the company released its results for the second quarter of the financial year 2026. The stock has now snapped a two-session losing streak.

Polycab India shares rose over 3.5 percent to hit a day’s high of Rs 7,700 apiece. The shares then closed at Rs 7,661 apiece. The company had released its Q2 results during the market hours of October 17. The stock had then dropped 2 percent at close on Friday.

Polycab India Q2 Results:

The wire and cable-maker reported a net profit of Rs 685.5 crore for July-September quarter of the financial year 2026. This marks a nearly 56 percent year-on-year rise from the Rs 439.8 crore net profit reported in the corresponding quarter of the financial year 2025.

The firm’s revenue from operations meanwhile rose nearly 18 percent YoY to Rs 6,477 crore in Q2 FY26. The company had reported revenue from operations at Rs 5,498 crore in Q2 FY25. EBITDA rose 62 percent YoY to Rs 1,020.7 crore.

Speaking about the company’s performance during the quarter, Polycab India Chairman and Managing Director Inder T. Jaisinghani said, “Our performance in Q2 FY26 marks another strong step forward in Polycab’s growth journey. We delivered our highest-ever second quarter and half yearly revenue and profitability, reflecting the continued strength of our core Wires & Cables business and the improving traction in the FMEG business.”

“The domestic demand environment remains healthy, supported by government infrastructure spending and improving private capex sentiment, while our international business continues to scale steadily. As we advance on our Project Spring agenda, we remain committed to driving industry-leading growth and creating long-term value for all stakeholders,” he added.

What brokerages say?

PL Capital kept a ‘Buy’ rating on the stock, with a target price of Rs 8,808 per share. This implies an upside potential of more than 18 percent from the stock’s previous closing price of Rs 7,439.5 apiece.

The domestic brokerage noted that the company’s wires and cables (W&C) segment reported volume growth in high teens, with cables bit higher than wires. Domestic W&C business grew by 20.6 percent YoY, driven by high government spending and improved project execution. The company's international business grew by 25 percent YoY in Q2 FY26, and contributed 6.5 percent to the total revenue.

“In EPC segment reported an EBIT margin of 18.1% in Q2FY26, supported by a one-time gain of Rs 300mn. The company aims to increase export contribution to 10% by FY30. Its FMEG segment delivered another quarter of positive EBIT led by solar products and is expected to be the major contributor to the FEMG portfolio. Its new plant is expected to be commissioned by Q3FY27 and accordingly, revenue contribution from EHV sales is likely to commence from FY28,” the brokerage said.

PL Capital expects revenue, EBITDA and PAT CAGR of 18.6 percent, 22 percent and 20.9 percent respectively over FY25-28E.

JM Financial Institutional Securities kept a ‘Buy’ call on the stock, with a target price of Rs 8,900 per share. This implies an upside potential of nearly 20 percent from the stock’s previous closing price. “Polycab once again delivered a strong performance in Q2. Polycab’s adjusted revenue, EBITDA, and PAT registered a YoY growth of 17%, 57%, and 51% respectively. This growth was largely driven by strong performance in the C&W segment from both domestic and export markets, with growth in exports outpacing that in the domestic market…Our EPS estimates remain largely unchanged. Maintain BUY with a target price of INR 8,900 set at 42x Sep’27E EPS,” it added.

Motilal Oswal kept a ‘Buy’ rating on the stock, with a target price of Rs 8,900 apiece. This implies an upside potential of nearly 20 percent from the stock’s previous closing price. “Polycab India posted yet another strong quarter… Polycab reported strong earnings in Q2 FY26, above our estimates, supported by higher-than-estimated margin in both the C&W and FMEG segments, while revenue was in-line. Demand in C&W remains robust, led by higher government capex, strong real-estate demand, and signs of recovery in private capex. Export also witnessed strong momentum. In FMEG, the company reported its third consecutive quarter of positive segment margin and reiterated its goal to achieve 8-10% margin by FY30,” it said.

“We estimate a CAGR of 18%/22%/21% in POLYCAB’s revenue/EBITDA/PAT over FY25-28. We estimate OPM to stand at 14.6%/14.2%/14.4% in FY26/FY27/FY28 vs. 13.2% in FY25. Cumulative FCF during FY26-28E is expected to be at INR43.4b, which will further improve its liquidity position (estimate net cash to improve to INR48.3b in FY28E vs. INR24.3b as of Sep’25),” it added.

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