18 Jul , 2025 By : Debdeep Gupta
Shares of Polycab India rallied nearly 3 percent to Rs 7,065 per share in morning trade on July 18 after Citi Research and UBS dished out bullish calls on the stock following its first quarter earnings.
Net profit for the quarter increased by 50 percent from the year-ago quarter to Rs 600 crore, while revenue from operations for the quarter increased by 25.7 percent to Rs 5,906 crore.
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Polycab's Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) increased by 47.1 percent to Rs 858 crore. EBITDA margins for the quarter expanded by over 200 basis points from the year-ago period to 14.5 percent.
Following the development, Citi Research maintained a Buy rating with a target price of Rs 7,700 per share, implying an upside potential of 12 percent from the last close on the NSE. The wires and cables segment continued to lead growth, with the FMEG (fast-moving electrical goods) division also showing strength, posting 18 percent revenue growth and a 283 bps expansion in margin to 2.1 percent. Notably, the FMEG business turned in its second consecutive profitable quarter.
UBS also reiterated a Buy rating on Polycab, raising its target price to Rs 8,100 per share. The new target forecasts an upside of 18 percent. The brokerage highlighted a robust start to the fiscal year and suggested that both the cables and wires (C&W) and FMEG segments delivered strong performances.
Polycab’s wires and cables segment posted a robust performance, with revenue rising to Rs 5,228 crore in the June quarter, up from Rs 3,995 crore a year ago. The FMEG (fast-moving electrical goods) business also saw healthy growth, with revenue increasing to Rs 454 crore from Rs 385 crore in the same period last year. Meanwhile, revenue from the EPC (engineering, procurement, and construction) segment declined to Rs 347 crore from Rs 427 crore a year ago.
Notably, the EPC division, previously clubbed under the ‘others’ segment, will now be reported separately after meeting the qualitative criteria for distinct disclosure.
At about 9:40 am, shares of the company were trading at Rs 7,050, higher by 2.5 percent from the last close on the NSE. Polycab India shares have risen 14 percent in the last month but still trade 5 percent lower on a year-to-date basis.
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